Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. A fiscal deficit situation occurs when the government’s expenditure exceeds its income. The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. The Budget … Continue reading What do you understand by fiscal deficit? Does strict adherence to fiscal deficit benefit economy in longer run? Critically analyse.(250 words)