A country's fiscal deficit stands at ₹ 50,000 crores. It is receiving ₹ 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹ 1,500 crores. What is the gross primary deficit?

(a) ₹ 48,500 crores ✓ UPSC's answer
(b) ₹ 51,500 crores
(c) ₹ 58,500 crores
(d) None of the above

Why the answer is (a)

• Gross primary deficit = gross fiscal deficit − interest payments; it shows how much of the borrowing is for current needs rather than for servicing past debt.

• Here: 50,000 − 1,500 = ₹48,500 crore, option (a).

• The non-debt-creating capital receipts of ₹10,000 crore (disinvestment, loan recoveries) are a distractor: they are already netted out in arriving at the fiscal deficit, so they are not subtracted again.

• Option (b) wrongly adds interest; option (c) wrongly adds both interest and the capital receipts.

• Hence option (a).

Why the other options are wrong

(b) ₹ 51,500 crores: Interest must be subtracted from, not added to, the fiscal deficit.
(c) ₹ 58,500 crores: Neither interest nor the capital receipts should be added to the fiscal deficit.
(d) None of the above: Option (a) gives the correct figure of 48,500 crore.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.