1.

Differentiate between Revenue deficit and Fiscal deficit

Answer»
BasicRevenue deficitFiscal deficit
MeaningIt results when revenue receipts are less than the expenditure. It is the difference between total revenue and total expenditure of the government (excluding borrowing).
IndicatorIt indicates the dependency on loans in near future.It is an indicator of the total borrowings needed by the government.
ArisesIt arises when the government’s actual net receipts are lower than the projected receipts.It arises due to hike in capital expenditure.


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