Daily Archives: May 7, 2015


Concepts – Fiscal deficit, deflation and devaluation

What is Fiscal Deficit? A government has many expenditures like salaries & payments of staff, funds for various schemes, loans and grants that it makes, contingency expenditures like those of disasters and compensation etc. Similarly it has many revenue sources like – interests it receives on loans given, revenues from disinvestment, revenues generated from selling resources like spectrum, oil, minerals etc. These type of revenues do not create any debt as government do not have to payback anything to anyone. For eg. revenues from spectrum… Continue Reading »