ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The excess of total expenditure over total receipts excluding borrowings is called Fiscal Deficit.

Detailed explanation-2: -31 A budget deficit occurs when expenditures exceed income. Money is borrowed and interest is paid when a deficit occurs.

Detailed explanation-3: -What Is a Deficit? In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus.

Detailed explanation-4: -A budgetary deficit is referred to as the situation in which the spending is more than the income. Although it is mostly used for governments, this can also be broadly applied to individuals and businesses.

Detailed explanation-5: -The following are the various types of deficits and the way to arrive at them. Revenue deficit: Revenue expenditure as reduced by revenue receipts. Fiscal Deficit: Total expenditure as reduced by total receipts except borrowings. Primary Deficit: Fiscal deficit as reduced by interest payments.