Ayan Innovation

           Fiscal Deficit is the difference between the total expenditure and the capital and revenue receipts excluding the borrowings. In other words, fiscal deficit is the difference between total expenditure of the government and the total receipt of the government.            Now looking from the Indian perspective view, the fiscal deficit of the Indian government for the financial year 2017-18 was 3.5 percent, which was about 0.3 percent more than the targeted budget fiscal deficit of 3.2 percent. If we look into the past two decades, the fiscal deficit in 1996-97 was 4 percent which grew to 6 percent in 2002-03. In the financial year 2007-08, the fiscal deficit was around 2.5 percent which increased to 5.9 percent in 2011-12.            The fiscal deficit is an important component of the budget planning. The increased Fiscal Deficit puts enormous pressure on the government expenditure. As a result the government is forced to borrow funds mainly from two sectors:- Domestic s