When a government spends more than it collects by way of revenue, it incurs a budget deficit. There are various measures that capture government deficit and they have their own implications for the economy.
Revenue Deficit
The revenue deficit refers to the excess of government’s revenue expenditure over revenue receipts.
The revenue deficit includes only such transactions that affect the current income and expenditure of the government.
When the government incurs a revenue deficit, it implies that the government is dissaving and is using up the savings of the other sectors of the economy to ....
