Fiscal deficit

    Fiscal Deficit

    Macroeconomics

    The gap between government spending and its revenues, financed by borrowing. Expressed as a percentage of GDP in the Union Budget.

    Formula

    Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings)

    Why it matters

    Larger deficits mean more government bond supply, which pressures yields upward and can crowd out private borrowing.

    Indian example

    Related terms

    Bond YieldRepo rate

    Learn the concept

    Debt markets and yield curves →

    From the research

    Markets

    Five Years of Nifty 50 Returns: What Do the Numbers Reveal?

    The Nifty 50 returned about 13% a year from 2021 to 2025. Change the start date, the currency or adjust for inflation, and the story changes.

    Methodology

    How Crude Oil Prices Affect India's Inflation and Current Account

    India imports nearly 89% of its crude. How oil prices flow into the current account, the rupee, inflation and the budget, and what 2026 showed.

    Methodology

    What the Yield Curve Tells Us About Economic Expectations

    The yield curve shows what markets expect for rates, inflation and growth. How to read its shape, what India's curve showed in October 2026, and its limits.