Differentiate between Revenue deficit and Fiscal deficit.
Answer»
Basis
Fiscal Deficit
Revenue Deficit
Meaning
It shows the excess of total expenditure over total receipts excluding borrowings. Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings
It shows the excess of revenue expenditure over the revenue receipts. Revenue Deficit = Revenue Expenditure – Revenue Receipts
Indicator
It measures the total borrowing requirements of the government.
It indicates the inability of the government to meet its regular and recurring expenditure.