Fiscal deficit

Fiscal deficit is the difference between the total revenue and total expenditure of the government. It is used to calculate the borrowings needed by the government. It is calculated both in absolute terms and as a percentage of the GDP. The factors causing fiscal deficits are revenue shortage and spike in capital expenditure Fitch Solutions recently forecasted that India would breach its fiscal deficit target in FY2021-22 due to revenue shortfall.


Leave a Reply