Why fiscal deficit is equal to budgetary deficit plus borrowing? {Since ,we know fiscal deficit is equal to borrowings & other liabilities}
Dear Student,
Budgetary deficit is the amount of total expenditures minus total revenues of the government. Budgetary deficit occurs when there is excess of expenditure over the revenues of the government.
Fiscal deficit is the amount of borrowings the government has to take to meet its expenses.A large fiscal deficit means large borrowing and it is the measure how much a government have to take borrowings to meet its expenses.
so, Fiscal deficit is equal to sum of budgetary deficit and borrowings taken by the government to meet its expenses.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
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Budgetary deficit is the amount of total expenditures minus total revenues of the government. Budgetary deficit occurs when there is excess of expenditure over the revenues of the government.
Fiscal deficit is the amount of borrowings the government has to take to meet its expenses.A large fiscal deficit means large borrowing and it is the measure how much a government have to take borrowings to meet its expenses.
so, Fiscal deficit is equal to sum of budgetary deficit and borrowings taken by the government to meet its expenses.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards