Distinguish between revenue deficit and fiscal deficit.
| Basis of Difference | Revenue Deficit | Fiscal Deficit |
| Meaning | It may be defined as the excess of revenue expenditure of the government over its revenue receipts. | It may be defined as the excess of the total budget expenditure over total budget receipts net of borrowings. |
| Significance | A revenue deficit in the government budget imply that the routine receipts of the government are not enough to meet its routine expenditures | A fiscal deficit signifies the borrowings of the Government i.e. the debt capital receipts of the government. |
| Formula | Revenue Deficit = Revenue Expenditure − Revenue Receipts | Fiscal Deficit = Total Budget Expenditure − (Total Budget Receipts − Borrowings) i.e. Fiscal Deficit = Borrowings |
Explain the problem of double coincidence of wants faced under barter system. How has money solved it?
Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
