Distinguish between revenue deficit and fiscal deficit.
|Basis of Difference||Revenue Deficit||Fiscal Deficit|
|1. Meaning||Excess of revenue expenditure of the government over its revenue receipts.||Excess of the total budget expenditure over total budget receipts net of borrowings|
|2. Significance||The regular receipts of the government are not enough to meet its regular expenditures||The borrowings of the government, i.e. the debt capital receipts of the government|
|3. Formula||Revenue deficit = Revenue expenditure − Revenue receipts||
Fiscal deficit = Total budget expenditure − (Total budget receipts − borrowings)
i.e. Fiscal deficit = Borrowings
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