ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fiscal deficit is defined as the excess of total expenditures over the total receipts, excluding the borrowings in a year.

Detailed explanation-2: -Budget receipts are the total amount expected to accrue to the government from different sources during a fiscal year. The Budget document presents an itemised listing of the income (tax and non-tax revenues), and capital receipts of the Central Government.

Detailed explanation-3: -A budget deficit occurs when a government spends more in a given year than it collects in revenues, such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year, and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.

Detailed explanation-4: -Fiscal deficit is the difference between the government’s total expenditure and its total receipts, excluding borrowing.

Detailed explanation-5: -Definition: The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government.