India’s fiscal deficit touched 115% of the budgeted target in the first half of 2020-21 to 115% of Budgeted target

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Revenue Expenditure

Refers to spending which include salaries, interest payments and other such recurrent spending.

Capital Expenditure

Refers to spending which leads to the creation of assets yielding financial or social returns. Capital expenditure is incurred to create long-term assets such as factories, buildings and other development

What Is a Deficit

In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets

Fiscal deficit is when a government’s total expenditures exceed the revenue that it generates (excluding money from borrowings).

The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government.

While calculating the total revenue, borrowings are not included. Generally fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure. A deficit is usually financed through borrowing from either the central bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds.

REVENUE DEFICIT
When government spends more than what it collects by way of revenue, it incurs revenue deficit.

PRIMARY DEFICIT
Fiscal deficit minus Interest payments.

Current Account Deficit is when a country is importing more goods and services than it exports

Deficit financing refers to the methods governments use to finance their budget deficits—such as issuing bonds or printing more money.