WORLD HISTORY

Detailed explanation-1: -A budget deficit occurs when government expenses exceed revenue.

Detailed explanation-2: -The amount of money in a budget by which the total expenditure of a government surpasses its total earnings is a deficit. The different measures of government deficit are Revenue deficit, Fiscal deficit and Primary deficit. In the year 2020-202021, the fiscal deficit of India was Rs 18.21 lakh crores (9.3% of the GDP).

Detailed explanation-3: -A budget deficit occurs when expenditures surpass revenue and then up impacting the financial health of a country. The term budget deficit is generally used when talking about total economic spending rather than the budget of businesses or individuals. National debt is made of the accrued deficits in budget.

Detailed explanation-4: -The primary deficit is calculated by subtracting interest payments for the borrowings from the current year’s fiscal deficit. The fiscal deficit is calculated by determining the difference between the total income and total expenditure of the government.

Detailed explanation-5: -A budget deficit implies a reduction in taxes and an increase in government spending, which results in an increase in the aggregate demand of the country and subsequent economic growth, ceteris paribus.

Detailed explanation-6: -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.