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Distinguish between revenue deficit and fiscal |
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Answer» Solution :Revenue defict is equal to the excess to total revenue EXPENDITURE over the total revenue RECEIPTS. On the other hand, fiscal deficit is equal to the excess of total expenditure over the sum of revenue and capital receipts EXCLUDING borrwoings. THUS, it is clear fromm the above statement, revenue deficit relates to total revenue receipts and total revenue expenditure. whereas, fiscal deficit relates to the difference in total expenditure (revenue and capital) and total receipts (revenue and capital) excluding borrowings. Revenue Deficit = Total Revenue Expenditure-Total Revenue Receipts. Fiscal Deficit = Total Budget Expenditure `(-)` (Revenue Receipts + Capital Receipts excluding borrowings) |
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