ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A fiscal deficit is when a government is spending beyond its means, or there is a shortfall in income compared with spending.

Detailed explanation-2: -Deficit spending is an economic policy in which a government spends more money raised by borrowing than it receives in revenue.

Detailed explanation-3: -A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $460 billion more than it has collected in fiscal year (FY) 2023, resulting in a national deficit. $

Detailed explanation-4: -A budget surplus is when income or revenue exceeds expenditures. Governments and companies with surpluses have additional money that can be reinvested or used to pay off debts. The opposite of a surplus is a deficit, which occurs when spending exceeds revenues.

Detailed explanation-5: -Budget deficit: Total expenditure as reduced by total receipts. 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.