SSC CHSL 2023 PYQ — Question 34

The correct answer is option 1 i.e. difference between gross fiscal deficit and interest payments.

Gross primary deficit is equal to the difference between gross fiscal deficit and interest payments. It represents the fiscal deficit before accounting for interest payments on the government's existing debt. Essentially, it measures the extent of the government’s borrowing requirement excluding the cost of servicing its debt. This helps to assess the underlying fiscal health of the government by focusing on the deficit arising from current expenditures and revenues, excluding the impact of past debt obligations.