Budget Deficit – Meaning, types, formula, questions class 12

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Looking, what is the budget deficit. its meaning, types, formulas, and important questions as per the syllabus of Government budget and the economy chapter of class 12 CBSE and other Boards.

I have explained this topic in detail.

Other names of Budget Deficit

  1. Budgetary Deficit
  2. Government Deficit

What is the meaning of Budget Deficit

When government total expenditure exceeds the total receipts. The government budget is said to be in deficit.

Definition of Budget (Budgetary) Deficit

Budgetary deficit is defined as the excess of total estimated expenditure over total estimated revenue

Sandeep Garg

Deficit in budget mean that the estimated expenditure is higher than the estimated receipts.

S.K Aagarwal

Budget deficit (also called government deficit) refers to a situation when budget expenditures of the government are greater than the budget receipts

T.R Jain

When a government spends more than it collects by way of revenue, it incurs a budget deficit.

NCERT

Types of Budget Deficit.

As per the Indian government budget. There are three types of Budget Deficit.

1. Revenue Deficit

Revenue Deficit refers to the excess of government revenue expenditures over revenue receipts during a fiscal year.

Read More:- What is revenue deficit, definition, types, formulas class 12

2. Fiscal Deficit

Fiscal deficit refers to the excess of total expenditure over total receipts excluding borrowings.

Read More:- What is Fiscal Deficit, definition, types, formulas class 12

3. Primary Deficit

Primary Deficit refers to the difference between Fiscal deficit and net interest payment of accumulated borrowings.

Read Here:- What is Primary Deficit, definition, types, formulas class 12

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Anurag Pathak
Anurag Pathak

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