UPSC Prelims 2025 · GS Paper I
Question 65: Economy and Social Development
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?
AnswerThe answer is (a).
Gross primary deficit is the gross fiscal deficit minus interest payments: 50,000 minus 1,500 gives 48,500 crore. The 10,000 crore of non-debt creating capital receipts is a distractor: such receipts have already been counted when the fiscal deficit was worked out, so they are not subtracted again. Remember: primary deficit equals fiscal deficit minus interest liabilities.
Why each option is right or wrong
- (a) Right: 50,000 minus 1,500 is 48,500 crore.
- (b) Wrong: it adds the interest instead of subtracting it.
- (c) Wrong: it adds the non-debt capital receipts to the fiscal deficit and interest.
- (d) Wrong: the correct figure is among the options.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2025, General Studies Paper I, Series A. The paper on upsc.gov.in.