The main difference between the fiscal and budget deficit is of time period in consideration.
Fiscal Deficit is the Govt. Deficit (Government Expenditures - Government Earnings (excluding borrowings)) for a fiscal year let say 2008-09 while...
Budget Deficit is the Govt. Deficit in fiscal year 2008-09 (i.e. fiscal deficit for year 2008-09) plus the past Debt over the Government (i.e. the net sum of all past Fiscal deficit/surplus before fiscal year 2008-09).
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
Fiscal deficit is the difference between the government expenditure and its revenues excluding the money borrowed. Deficit financing is the financing of debts to cover excess expenditure over income.
Budget for a fiscal year is a statement of revenue and expenditure of the government for the particular year. If the expenditure is more than the revenue for a particular year, then this difference is called the fiscal deficit. If the revenue is more than the expenditure for a particular year then this difference is called the excess revenue.
Primary deficit=Fiscal deficit-[minus] Interest payments
Primary deficit is the gross deficit which is obtained by subtracting interest payments from budget deficit of any country of a particular year. We need to know the value of primary deficit, while calculating the fiscal deficit.Alternative Definition of Primary DeficitPrimary deficit corresponds to the net borrowing, which is required to meet the expenditure excluding the interest payment.Primary Deficit = (Fiscal Deficit - Interest Payment)Statistical reports: Primary deficit ( in India)In the fiscal year 1999-2000: primary deficit was (-) Rs.2598.72 croreIn the fiscal year 2000-2001: primary deficit was (-) Rs.1038.38 croreIn the fiscal year 2001-2002: primary deficit was (-) Rs.2598.72 croreOver the last few year the fiscal status of India has improved. In the fiscal year 2006-07, the revenue deficit in India was 2%, primary deficit was 0.1% and fiscal deficit was 3.7 percent. The government of India budget for 2007-08 predicts a revenue deficit of 1.5%, primary deficit of -0.2% and fiscal deficit of 3.3 percent.
The deficit only includes shortfalls in the budget for the current fiscal year.
Currently in 2010-2011 1. Revenue Deficit 2. Fiscal Deficit 3.Primary Deficit. There used to be these 2 more type which have been now abolished 4. Budget Deficit 5. Monetised Deficit ~email@example.com
Indian economy operates at deficit budget because India is a growing economy and a deficit budget alway boosts the economy.Indian economy is a planned economy where the Fiscal budget of total expenditure is always higher than total budget receipts and capital receipts excluding borrowings.
The difference between fiscal & non-fiscal metering is when the measurement value is relevance to money.
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
calculating a budget deficit
the government cuts taxes
when the expenditure is more then the revenue.it means that your spending is more then the amount which you have[revenue]
Fiscal deficit is said to be good for the country as it helps the country to climb out of a recession.
A fiscal policy is when a government passes an act to spend money to help stimulate the economy. This will create a larger deficit in the national budget. This can only be made up of taxes to the working classes of people.
Fiscal consolidation is a policy aiming at reducing fiscal deficit of government .
The fiscal deficit in India is not fundamentally different from the fiscal deficit in any other country. The public always wants more government spending but they do not want more government taxes. The government attempts to oblige, by borrowing money. The result is a deficit.
The fiscal year for the federal government starts in October, they are required to vote on the budget deficit. If they are unable to vote to pass the budget, they may shut down. Very few times in history has this happened, although there are some good examples in 2010, and 2011 where they did not pass the budget deficit and were on the verge of actually shutting down.
Fiscal deficit is not always bad.... deficit arises from two parts - capital deficit and revenue deficit. now revenue deficit is obviously bad for economy stating that we are not able to pull money sufficient to meet our revenue and there is no asset creation. on the other hand if major fiscal deficit is coming from capital deficit its not all that a bad news. after all asset creation is taking place. n such moves are welcome.
difference between fisal and monetry policy
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy.
One of the primary reasons for the fiscal deficit in India is interest paid on national and international loans. It is further fueled by government subsidies.
In economics, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy can be contrasted with the other main type of economic policy,monetary policy , which attempts to stabilize the economy by controlling interest rates and the supply of money. The two main instruments of fiscal policy are government spending and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. Fiscal policy refers to the overall effect of the budget outcome on economic activity. The three possible stances of fiscal policy are neutral, expansionary and contractionary: * A neutral stance of fiscal policy implies a balanced budget where G = T (Government spending = Tax revenue). Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves a net increase in government spending (G > T) through rises in government spending or a fall in taxation revenue or a combination of the two. This will lead to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. Expansionary fiscal policy is usually associated with a budget deficit. * A contractionary fiscal policy (G