Budget
Budget:
Certain important terms that need to be understood from the document are Fiscal Deficit (FD), Revenue Deficit (RD), Effective Revenue Deficit (ERD), and Primary Deficit (PD), as well as how the government of India fared in each of these areas.
Fiscal Deficit(FD): It is the difference between Total Expenditure and the Revenue Receipts (including Non-Debt Capital Receipts). It is reflective of the total borrowing requirement of Government.
Debt Capital Receipts: These are proceeds that the government raises and must repay with interest. Examples of debt capital receipts include-
- Market loans
- Issuance of securities
- Short-term borrowings
- Treasury bills
- Securities against small savings
- State provident funds
- Relief bonds
- Saving bonds
- Gold bonds
- External debt
Revenue Deficit: It refers to the excess of revenue expenditure over revenue receipts.
Effective Revenue Deficit: The difference between Revenue Deficit and Grant-in-Aid for creation of Capital Assets.
Primary Deficit: It is measured as Fiscal Deficit less interest payments.
Effective Capital Expenditure (Eff-Capex): It refers to the sum of Capital Expenditure and Grants-in-Aid for creation of Capital Assets.