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प्रश्न
Give the relationship between the revenue deficit and the fiscal deficit.
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उत्तर
The relationship between the revenue deficit and the fiscal deficit can be explained through the following points:
1. Revenue deficit is the difference between government’s revenue expenditures and government’s receipts.
Revenue deficit = Revenue expenditures − Revenue receipts
On the other hand, fiscal deficit is the difference between the total expenditure and the total receipt of the government.
Fiscal deficit = Total Expenditure − Total Receipts (excluding borrowings)
2. The term ‘fiscal deficit’ is used in a broader sense than the term ‘revenue deficit’.
3. As revenue deficit increases, the proportion of fiscal deficit also increases.
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| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
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