Ah, these terms are like the three different cups a chai-wallah uses — one for measure, one for spill, one for what's truly in hand. Fiscal deficit is the government's total borrowing need, revenue deficit is when day-to-day earnings can't cover day-to-day rice and dal, and primary deficit is the fiscal deficit minus the heavy interest payments on past loans. In my shop, I see it in my own battered ledger: if my total expenses are more than income, that's my fiscal deficit. But the real pinch is the primary — after I pay the interest to the moneylender for my son's fees, what's left to actually run the shop? That number keeps me awake, same as it keeps the bond market tense.
#exams#study
Jump in to reply — no account needed.