Total expenditure is Rs. 1,000 billion, total revenue is Rs. 800 billion and interest payments are Rs. 120 billion. The primary deficit is:

A. Rs. 200 billion
B. Rs. 320 billion
C. Rs. 120 billion
D. Rs. 80 billion
Correct Answer: D. Rs. 80 billion

Fiscal deficit = 1,000 - 800 = 200. Primary deficit = 200 - 120 = Rs. 80 billion.

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