Can there be a fiscal deficit in a government budget without a revenue deficit? Explain.
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- Yes, there can be a fiscal deficit in government budget without any revenue deficit.
- Revenue deficit is a position where total revenue expenditure of the government exceeds its total revenue receipts.
- Fiscal deficit is a position where total expenditure of the government exceeds sum total of its revenue receipts and non-debt capital receipts.
- Hence, there can be a fiscal deficit without revenue deficit in following situations:
- When capital budget shows a deficit and revenue budget is balanced.
- When deficit in capital budget is greater than surplus in revenue budget.
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