BANKING AFFAIRS

Detailed explanation-1: -Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.

Detailed explanation-2: -The difference between the total expenditure of Government by way of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which finally accrue to Government on the other, constitutes gross fiscal deficit.

Detailed explanation-3: -Revenue deficit. The excess of revenue expenditures over revenue receipts is called revenue deficit.

Detailed explanation-4: -On the receipts side, taxes would be the most important revenue receipt. On the expenditure side, anything that does not result in creation of assets is treated as revenue expenditure. Salaries, subsidies and interest payments are good examples of revenue expenditure.

Detailed explanation-5: -Capital expenditure is the money spent by a firm to acquire assets or to improve the quality of existing ones. Revenue expenditure is the money spent by business entities to maintain their everyday operations. Capital expenses are incurred for the long-term.