Question

What is fiscal deficit? Can there be fiscal deficit without revenue deficit ​

Answer 1

Answer:

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HEY.....HERE IS YOUR ANSWER:

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.

Yes, Suppose the government earns a lot of revenue and minimise it's routine expenditure. so, we have a revenue surplus and not a deficit. but the government got less receipt from capital sources. but made huge spending on infrastructure project made flyovers, railway, airport etc now the excess of cap exp over cap receipts is greater than the revenue surplus.

so, fiscal deficit can happen even without revenue deficit when:

Revenue deficit = 0

but ( cap exp - cap recpts) > 0

Revenue surplus

but ( cap exp - cap recpts) > Revenue surplus

Explanation:

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Answer 2

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Fiscal Deficit

Fiscal Deficit is equal to the excess of all expenditures (capital and revenue) over the sum of revenue and capital receipts, excluding borrowings.

There can be a fiscal Deficit without the revenue deficit. It can be explain as follows:

• When revenue receipts are equal to revenue expenditure i.e., balanced revenue budget but capital expenditure is more than capital receipts.

• When revenue receipts are greater than revenue expenditures i.e., surplus revenue budget but capital expenditure is more than capital receipts and the deficit in the capital budget is more than the surplus in revenue budget.