1.

Differentiate between Revenue deficit and Fiscal deficit.

Answer»
BasisFiscal DeficitRevenue Deficit
MeaningIt shows the excess of total expenditure over total receipts excluding borrowings. Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowingsIt shows the excess of revenue expenditure over the revenue receipts. Revenue Deficit = Revenue Expenditure – Revenue Receipts
IndicatorIt measures the total borrowing requirements of the government.It indicates the inability of the government to meet its regular and recurring expenditure.
Sources of FinancingTax and non-tax revenue.Borrowing and deficit financing.


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