Question

what are the examples of fiscal deficit?​

Answer 1

Answer

The examples of fiscal deficit

Total expenditure = Total receipts (tax, non tax, disinvestment, borrowings etc)

          The term fiscal deficit is defined as all expenditure minus all receipts except borrowings.

          Fiscal deficit = Total Expenditure – Total Receipts except borrowings.  

 

Take an example:

          Total expenditure                    = Rs 100

          Total receipts                = Rs 100 (including borrowings of Rs 20)

          Fiscal deficit                 = Total Expenditure– total receipts except borrowings.  

                                               = 100- (100-20)

                                               =Rs 20