what is the meaning of FISCAL DEFICIT in economic terms?

Question

fiscal deficit,budgetary deficit,current account deficit meaning of these economic terms.

Answer 1

A budget deficit occurs when an entity (often a government) spends more money than it takes in. The opposite is a budget surplus.

The size of a governmental budget deficit is often an important political issue as well as one of economic policy. Fiscal conservatives denounce deficit spending and advocate balanced budgets. Keynesians argue that under some circumstances, deficit spending is justified. "Starve-the-beast" strategies usually lead to high budget deficits.

An accumulated deficit over several years (or centuries) is referred to as the government debt. Often, a certain part of spending is dedicated to paying of debt with certain maturity, which can be refinanced by issuing new government bonds. That is, a fiscal deficit leads to an increase in an entity's debt to others. A deficit is a flow. And a debt is a stock. Debt is essentially an accumulated flow of deficits.

Any deficit must, ultimately, be repaid, either through taxation, or seignorage. The Ricardian equivalence hypothesis states that this means a public deficit is exactly the same as a tax rise.

The existence of a deficit has in some cases led to the existence of a capital market and been a great benefit to economic activity.

A formula to calculate debt is:

Debt = RBt-1 + (r-g)Gt - Tt
R= real interest rate.
Bt-1= Debt of last year.
r = Interest Rate
g= growth rate
Gt= Government Spending
Tt = Tax Revenue.

Answer 2

Fiscal deficit is the amount of money your business or organization was short this fiscal year. A fiscal year is how they run their books. Not all companies run January to December. Alot of comapanies run from when they a started. Like if the company started in June 2001 they would have a fiscal year of June 2001 to May 2002 that would be one fiscal year for them. A business usually runs on accrual meaning everything is divided out on a monthly cost ratio. So if you get a property tax bill for the year and it is 12000.00 you would divide it up $1000.00 for each month. Even though you might pay it at the end of the year in one lump sum.Thus at the end of the year when you look over your reports and you come up with a negaticve number in your income and balance statements this is a budgetary deficit or deficit fiscal year.

Answer 3

Fiscal Meaning

Answer 4

Deficit Meaning

Answer 5

Thank you. And as a couple of the answers show, they didn't read it or didn't understand it. Economics for most is a tricky subject. Most folks look at it as a Snapshot in time. Like we can directly compare point A to point B. Economics is also not an easy discussion topic. Folks who talk about the National Debt think it's like a Credit card and how much you owe. It is actually based on a method of forecasting used first by the Ancient Greeks, then the Romans. It is NOT a tool to measure "How much we owe". Borring from China? Actually they Borrow from the U.S. when they buy our Securities and Treasuries. Again, there is no "Easy, MTV" version as people want to know about today. As such, most discussion on the Economy and what folks say is rather amusing. Quoting figures that have nothing to do with subject they refer to. For the guy who asked "What does 47 million houses in the last 27 years mean". How can you have a conversation with someone who dosn't understand jobs, and a strong Economy? Good work.

Answer 6

Fiscal deficit is the bottom line figure you see at the end of the quarter when you spend more than you earn.