Question

Distinguish between Budget deficit and Fiscal deficit Give two reasons why fiscal deficit is a better measure than budgetary deficit​

Answer 1

Answer:

a budget depending upon the types of receipts and expenditure we take into consideration. Accordingly, there are three concepts of deficit, namely

(i) Revenue deficit

(ii) Fiscal deficit

Answer 2

Answer:

Budgetary deficit is the excess of total expenditure (both revenue and capital) over total receipts (both revenue and capital). ADVERTISEMENTS: Following are three types (measures) of deficit: ... Fiscal deficit = Total expenditure – Total receipts excluding borrowings.