Please clear other than borrowings point in definition of fiscal deficit as they are not included. why?
2) difference between fiscal deficit and gross fiscal deficit.
definition state that gross is aggregate of estimated borrowing s but fiscal deficit itself exclude borrowing
Fiscal deficit does not include borrowings and liabilities of the government. This is because it reflects the requirements of borrowings of the government by implying the excess of budgetary expenditure over budgetary receipts.The excess of budgetary expenditure over budgetary receipts implies that the government is bound to borrow to meet its expenditures. fiscal deficit reflects this difference and hence, the borrowing requirements of the government.
The relationship between net fiscal deficit and gross fiscal deficit is as follows.
Net fiscal deficit = Gross fiscal deficit - Net domestic lending of central government
Yes, gross fiscal deficit reflects aggregate of estimated borrowings as it implies the amount by which budgetary expenditure exceeds budgetary receipts. Fiscal deficit excludes borrowings but they reflect the borrowing requirements of the government.
If you still have any doubt in this question, do get back to us.
The relationship between net fiscal deficit and gross fiscal deficit is as follows.
Net fiscal deficit = Gross fiscal deficit - Net domestic lending of central government
Yes, gross fiscal deficit reflects aggregate of estimated borrowings as it implies the amount by which budgetary expenditure exceeds budgetary receipts. Fiscal deficit excludes borrowings but they reflect the borrowing requirements of the government.
If you still have any doubt in this question, do get back to us.