Introductory Macroeconomics

Book: Introductory Macroeconomics

Chapter: 5. The Government: Budget And The Economy

Subject: Social Science - Class 12th

Q. No. 4 of Exercises

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Give the relationship between the revenue deficit and the fiscal deficit.

Revenue deficit is the excess of revenue expenditure over revenue receipts whereas fiscal deficit is excess of total expenditure over total receipts (excluding borrowings). Fiscal deficit is a wider phenomenon than revenue receipts. If capital expenditure is greater than non-debt capital receipts then there is physical deficit even if there is no revenue deficit.


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