Question

Explain the concept of fiscal deficit ?what does it indicate?

Answer 1

Answer:

A fiscal deficit is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means. ... A fiscal deficit is different from fiscal debt. The latter is the total debt accumulated over years of deficit spending.

Answer 2

Explanation:

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. ... The government's support to the Central plan is called Gross Budgetary Support.