When a government spends more than it receives by the way of revenue, it is known as the budget deficit.
The difference between revenue expenditure and revenue receipts is known as the revenue deficit.
The difference between the government’s total expenditure and its total receipts excluding borrowing is known as the fiscal deficit.
The growth of revenue deficit as a percentage of fiscal deficit points to a deterioration in the quality of government expenditure involving lower capital formation.
Government deficit can be reduced by an increase in taxes or/and reduction in expenditure.
Public debt is burdensome if it reduces the future growth in terms of output.
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