The following budget data are for a country having both a central government and provincial governments: Central purchases of goods and services 200 Provincial purchases of goods and services 150 Central transfer payments 100 Provincial transfer payments 50 Grants in aid (central to provincial) 100 Central tax receipts 450 Provincial tax receipts 100 Interest received from private sector by central government 10 Interest received from private sector by provincial governments 10 Total central government debt 1000 Total provincial government debt 0 Central government debt held by provincial governments 200 Nominal interest rate 10% Calculate the overall and primary deficits for the central government, the provincial governments, and the combined governments
The following budget data are for a country having both a central government and provincial governments:
Central purchases of goods and services 200
Provincial purchases of goods and services 150
Central transfer payments 100
Provincial transfer payments 50
Grants in aid (central to provincial) 100
Central tax receipts 450
Provincial tax receipts 100
Interest received from private sector by central government 10
Interest received from private sector by provincial governments 10
Total central government debt 1000
Total provincial government debt 0
Central government debt held by provincial governments 200
Nominal interest rate 10%
Calculate the overall and primary deficits for the central government, the provincial governments, and the combined governments
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