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Economy

What is Fiscal Deficit? — Meaning, Definition & Example

Definition

Fiscal deficit is the difference between the government's total expenditure and total revenue (excluding borrowings). It indicates how much the government needs to borrow to fund its expenses. A high fiscal deficit can lead to inflation and higher interest rates.

💡 Real Example

If India's fiscal deficit target is 5.1% of GDP, it means the government plans to borrow about 5.1% of the total economy's value to fund its spending.

🇮🇳 Fiscal Deficit in Hindi / हिंदी में

राजकोषीय घाटा — राजकोषीय घाटा सरकार के कुल व्यय और कुल राजस्व (उधारी को छोड़कर) के बीच का अंतर है।

Fiscal Deficit (Hinglish) — Fiscal deficit government ke total expenditure aur total revenue (borrowings chhod ke) ka difference hai. Ye batata hai government ko kitna borrow karna padega.

❓ Frequently Asked Questions

What is Fiscal Deficit in simple words?
Fiscal deficit is the difference between the government's total expenditure and total revenue (excluding borrowings). It indicates how much the government needs to borrow to fund its expenses. A high fiscal deficit can lead to inflation and higher interest rates.
Can you give an example of Fiscal Deficit?
If India's fiscal deficit target is 5.1% of GDP, it means the government plans to borrow about 5.1% of the total economy's value to fund its spending.
What is Fiscal Deficit meaning in Hindi?
In Hindi, Fiscal Deficit is called राजकोषीय घाटा. राजकोषीय घाटा सरकार के कुल व्यय और कुल राजस्व (उधारी को छोड़कर) के बीच का अंतर है।