THE EXAMS POINTThree budget deficits
Begin at the centre. Explore a branch, explain its connection, then test your recall. Tap any branch heading to fold or expand it.
In recall mode, focus or tap a branch to reveal its explanation. Branches group related ideas; they do not imply a chronological sequence.
Three budget deficits
01 · Revenue deficit
Revenue expenditure − revenue receipts.
02 · Fiscal deficit
Total expenditure − revenue receipts − non-debt capital receipts.
03 · Primary deficit
Fiscal deficit − interest payments.
Connect the branches
Classify receipts and expenditure before calculating a deficit. Use consistent coverage and accounting definitions.
Avoid the exam trap
Borrowing finances the fiscal deficit; it is not subtracted as a non-debt receipt.
Test yourself: If fiscal deficit is 100 and interest payments are 30, what is primary deficit?
70, in the same units.
A concise revision aid with simplified connections. It supports the full chapter and primary references; it does not replace them.