Question

Explain the types of budget deficit

Answer 1

Fiscal Deficit = total expenditure – total receipts except borrowings. Primary Deficit = Fiscal deficit- interest payments. Effective revenue Deficit-= Revenue Deficit – grants for the creation of capital assets. Monetized Fiscal Deficit = that part of the fiscal deficit covered by borrowing from the RBI

Answer 2

Answer:

budget deficit = budget deficit refers to a situation when budget expenditure of the government greater than the budget receipts .

Types of budget receipts :

1) Revenue deficit = Revenue deficit is the excess of revenue expenditure over revenue receipts .

Revenue deficit = Revenue expenditure - Revenue receipts

2) Fiscal deficit = fiscal deficit is the excess of total expenditure over total receipts other than borrowings

Fiscal deficit = Total expenditure - Total receipts ( other than borrowings )

3) Primary deficit = primary deficit is the difference between fiscal deficit and interest payment.

Primary deficit = Fiscal deficit - interest payment