ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Deficit spending is when a government spends more than the revenue it collects during a certain period. Fiscal deficits occur when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowing.

Detailed explanation-3: -Fiscal deficit is the difference between the total revenue and total expenditure of a government in a financial year. Fiscal deficit arises when the expenditure of a government is more than the revenue generated by the government in a given fiscal year.

Detailed explanation-4: -a budget in which more money is spent than comes in during a particular period: For the first time in nine years, the state’s financial reserves are being used to help avoid an unbalanced budget.