Economics · Economy

With reference to the concept of Primary Deficit in government accounting, consider the following statements: 1. A primary deficit of zero indicates that the fiscal deficit is equal to interest payments, meaning current borrowings are fully used for past interest service. 2. Achieving a primary surplus is mathematically necessary to reduce the debt-to-GDP ratio even if nominal GDP growth exceeds the interest rate. 3. The primary deficit formula completely excludes all forms of capital expenditure outlays from its core calculation. Which of the statements given above is/are correct?