784 (Budget) What is Fiscal Deficit (Hindi)

• Report rights infringement
• published: 05 Jul 2014
• views: 2030

Case Budget - What is Fiscal Deficit ? Video Link - https://www.youtube.com/watch?v=8hZx4kJEeGc Solution - By Amlan Dutta Let's understand this with very simple examples ...First what deficit mean ---lack ...fiscal means money deficit in the current year So fiscal deficit means negative difference Obviously such a case would arise when the expenses would surpass the income Consider a teenager example Say , Ravi has a Girlfriend Sunny Zeone ...he has to buy clothers for her , though not much but still pretty expensive clothes ...other than this Ravi has other expenditure of his own ,like buying second hand textbooks , buying film cd's , sending money to parents like a dutiful son etc etc and he pays house rent 10000 Rs His total expenses for the month average to 30000 Rs So , his yearly expense sums up to 360000 Rs Now Ravi earns 20000 Rs per month(post taxes and everything ) , so his yearly income is 240000 Rs Ravi's yearly expense in the year 2013 14 worked out to be 350000 Rs Clearly his expenses are more and so he had a deficit of 110000 Rs This deficit in the year represents the fiscal deficit for Ravi and he takes loans from SBI bank to cope up up with maintaining a rich girlfriend like sunny Zeone ---Liker Ravi , for the Government , the expenses are now for the country The country becomes the family for the government It has to provide for education , infratsructure , electricity , roads , jobs , water etc So , it has a lot of expenditure to meet out ----say 70000 Cr funds were spend to meet expenditure for all this projects For government , the only source of revenue are the taxes - Direct and Indirect (all) So the direct taxes - Income, wealth etc and the indirect (all state body taxes( LBT , octroi etc etc ) , all central taxes -Excise , service, etc etc ) sum up to the government revenue Say they sum up to 40000 Cr for the year 2013 14 ...Say by means of investment etc , Govt has earnt another 10000 Cr So total revenue is 50000 Cr whereas expenses are 70000 Cr Clearly then there is a deficit of 20000 Cr , It is the same household story , but only thing is for the govt now the house is the family Peace , Amlan Dutta