can there be a revenue deficit without a fiscal deficit. explain?
No, there can not be revenue deficit without a fiscal deficit.Fiscal Deficit refers to the difference between the total budget expenditure and total budget receipts of the government, other than the borrowings and liabilities. That is,
Fiscal Deficit = (Revenue Expenditure + Capital Expenditure) – (Revenue receipts + Capital receipts other than borrowings)
or, Fiscal Deficit = (Revenue Expenditure – Revenue receipts) + (Capital Expenditure – Capital receipts other than borrowings)
From this we can infer that when there is revenue deficit (i.e. revenue expenditure exceeds revenue receipts), then, the government will face a fiscal deficit.
Fiscal Deficit = (Revenue Expenditure + Capital Expenditure) – (Revenue receipts + Capital receipts other than borrowings)
or, Fiscal Deficit = (Revenue Expenditure – Revenue receipts) + (Capital Expenditure – Capital receipts other than borrowings)
From this we can infer that when there is revenue deficit (i.e. revenue expenditure exceeds revenue receipts), then, the government will face a fiscal deficit.