- 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.
- While calculating the total revenue, borrowings are not included.
- Generally, fiscal deficit takes place due to either revenue deficit or a major hike in capital expenditure.
- A deficit is usually financed through borrowing from either the Central Bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds.
- A mismatch in the expected revenue and expenditure can result in revenue deficit.
- Revenue deficit arises when the government’s actual net receipts is lower than the projected receipts.
- A revenue deficit does not mean actual loss of revenue.
Thursday, November 19, 2009
Fiscal Deficit
Was Iran Persia?
The short answer is yes , they are the same place—but the names carry different historical and cultural weights. Think of it like a rebrandi...
-
How does a differential in automobiles work? A differential in an automobile allows the drive wheels to rotate at different speeds while m...
-
Archaeological excavations at the Keeladi site in Tamil Nadu have uncovered many ring wells, which are a sign of advanced water conservation...
-
The Central Board of Direct Taxes has released a new deadline for ITR filing for non-audit cases, including salaried taxpayers. The final da...
