1.

 Distinguish between revenue deficit & fiscal deficit.

Answer»
Revenue DeficitFiscal Deficit
It is the excess of government revenue expenditure over the government revenue receipts during a fiscal year / financial year.It is excess of the government total expenditure over the government total receipts net of the borrowings during a fiscal year.
Revenue deficit = revenue expenditure – revenue receiptsFiscal deficit = fiscal government total expenditure – fiscal government total receipts (net of the borrowing).
It indicates the inability of the government to meet the regular and recurring expenditure of the government.Fiscal deficit indicates the total borrowing requirements of the government


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