Long answer type questions: Discuss the meaning of following deficits: (i) Revenue Deficit; (ii) Fiscal Deficit; and (iii) Primary Deficit.
Revenue deficit is related to revenue receipts and revenue expenditure
of the government. Revenue deficit is the excess of revenue expenditure
over revenue receipts. It does not include items of capital expenditure
and capital receipts.
A fiscal deficit refers to a situation when total expenditure exceeds
the total receipts. Thus, fiscal deficit is estimated as the difference
between total expenditure and total receipts of the government.
Primary deficit is the difference between fiscal deficit and interest