Postgraduate Public Finance

Fiscal Deficit through the Government Budget

7 min read

Receipts, expenditure and borrowing — the arithmetic behind the deficit number.

The fiscal deficit is the gap the government covers by borrowing. Reading it well means reading both the numerator and the quality of spending.

Lesson objectives

  • Define fiscal, revenue and primary deficit.
  • Link the deficit to gilt supply and crowding-out debates.

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