CBSE Class 12-commerce Answered

Fiscal deficit is estimated, by accounting all receipts and expenditures of the government. Fiscal deficit is the excess of total expenditure over total reciepts.
Fiscal Deficit = Total expenditure – Total receipts other than borrowing

Primary deficit is estimated as the difference between fiscal deficit and interest payments.
Primary deficit = Fiscal deficit- interest payments.

While fiscal deficit shows borrowing requirements of the governments including interest payments on the national debt, primary deficit shows borrowing requirements of the governments excluding interest payments.