A primary budget balance differs from the overall fiscal balance because it excludes:
Correct answer: A. Interest payments on public debt
- A. Interest payments on public debt
- B. Tax revenue collected by government
- C. Spending on public education
- D. Current transfers to households
Explanation
The primary balance compares government revenue with expenditure excluding interest payments on existing debt. Including interest payments gives the overall fiscal balance, so the two measures can show different positions.
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Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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