Primary Deficit, Fiscal Deficit - Debt Dynamics in India

Madhusudhanan S

doi:https://doi.org/10.14445/23939125/IJEMS-V4I11P107

Research Article | Open Access

Volume 4 | Issue 11 | Year 2017 | Article Id. IJEMS-V4I11P107 | DOI : https://doi.org/10.14445/23939125/IJEMS-V4I11P107

Primary Deficit, Fiscal Deficit - Debt Dynamics in India

Madhusudhanan S

Citation :

Madhusudhanan S, "Primary Deficit, Fiscal Deficit - Debt Dynamics in India," International Journal of Economics and Management Studies, vol. 4, no. 11, pp. 45-47, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I11P107

Abstract

There are ample of studies and evidences from the literature that shows the relationship between fiscal deficit and public debt. Primary and fiscal deficit plays a vital role in Debt dynamics. There has been always debate whether fiscal deficit is important or primary deficit. This paper brings out answer to some important questions. This paper attempts to explain the debt dynamics followed by an ongoing debate on primary versus fiscal deficit in India and this paper ends with a conclusion.

Keywords

Debt Dynamics, Debt-to-GDP ratio, Fiscal deficit, Primary deficit/ Surplus.

References

[1] John Maynard Keynes, The General Theory of Employment, Interest and Money, Cambridge University Press, 1936.
[2] Miguel Lebre de Freitas, Politicas Macroeconomicas, Handout, 8 - Debt Dynamics, 2015.
[3] https://krugman.blogs.nytimes.com/2010/07/14/delusions-about-debt-dynamics/?_r=0.
[4] https://foreignpolicyblogs.com/2011/12/19/debt-dynamics-who-is-most-at-risk/.
[5] http://blog.jpmorganinstitutional.com/2015/05/debt-dynamics-a-refresher/.
[6] http://www.livemint.com/Opinion/UxksEU4FVpP4yOgMuMfVeK/What-sort-of-new-FRBM-do-we-need.html.
[7] http://www.livemint.com/Opinion/hcsTsvyPSFPaTFmvYCljBO/Select-thoughts-on-the-FRBM-report.html.