Fiscal deficit

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Julius S.

Jun 30, 2020

How is the revenue deficit related to fiscal deficit?

1 answer

Dave B.

Jun 30, 2020

Fiscal deficit is a wider term than the revenue deficit. Revenue Deficit = Revenue expenditure - Revenue' receipts. On the other hand, Fiscal Deficit = Revenue deficit + (Capital expenditure - Non-debt capital receipts). So, revenue deficit forms part of fiscal deficit.