Types of Deficits

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Different Types of Deficits are:
• Budget deficit = total expenditure – total receipts
• Revenue deficit = revenue expenditure – revenue receipts
• Fiscal Deficit = total expenditure – total receipts except borrowings (it
tells amount of borrowing required)
• Primary Deficit = Fiscal deficit- interest payments
• Effective revenue Deficit = Revenue Deficit – grants for the creation of
capital assets
• Monetized Fiscal Deficit = that part of the fiscal deficit covered by
borrowing from the RBI.