Types of Deficit
These are major types of Deficit often asked in banking exams and other competitive exams.
1. Revenue Deficit :It refers to the excess of total revenue expenditure of the government over its total revenue receipts. It is equal to Revenue Expenses – Revenue Receipts
2. Fiscal Deficit : Fiscal deficit is defined as excess of total expenditure over total receipts excluding borrowings during a fiscal year. It equals to Revenue Deficit + Capital Expenditure – Non debt creating capital receipts
3. Gross Fiscal Deficit : Equal to Total Expenditure – ( Revenue Receipts + Non debt capital receipts )
4. Primary Deficit :Primary deficit is defined as fiscal deficit minus interest payments on previous borrowings. Primary deficit shows the borrowing requirements of the govt. for meeting expenditure excluding interest payment. Fiscal Defict – Interest Payments
