ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -They are explained follows: Fiscal deficit. Revenue deficit. Primary deficit.

Detailed explanation-2: -The three types of budgets are a surplus budget, a balanced budget, and a deficit budget. The state budget is a financial document including income and expenditure for the year. An income-and expense-based spending plan is referred to as a budget.

Detailed explanation-3: -What is the difference between primary deficit and fiscal deficit? Primary deficit indicates the amount of borrowing which the government needs excluding the interest component. Fiscal deficit, on the other hand, is the difference between the government’s total expenditure and total income.

Detailed explanation-4: -The two components of the fiscal deficit are income and expenditure. Income: the total income generated by the government can be divided into: Tax revenue: GST, customs duties, corporate tax, etc. Non-tax revenue: dividends and profits, interest receipts, etc.

Detailed explanation-5: -Fiscal Deficit and Budget Deficit The higher the amount the Fiscal Deficit, the higher will be the borrowed amount. Thus, the Budgetary deficit is the only difference between all the receipts and all the expenses in both terms, that is revenue and capital account of the government.