Fiscal Deficit in simple words is difference between the government's expenditures and its revenues. The government spends money for various reasons and it generates its revenues from taxes being collected from the people.
It is very important for you to understand the more complex part of it, A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.Deficit differs from debt, which is an accumulation of early deficits.
Generally, fiscal deficit occur takes place either due to revenue deficit or a major hike in capital expenditure. Capital expenditure is incurred to create long term assets such as factories, buildings and various other developments.
A deficit usually gets financed through borrowing money from either central bank of the country or raising money from capital markets by different modes like treasury bills and bonds etc.
Finance minister Arun Jaitley proudly said shifting towards cashless India will help in bridging fiscal deficit, eventually increasing the government’s funding for Rural, Urban and Defence sectors.
With Banks getting cash rich and India moving towards a cashless economy shall lead to empowering of our banking system which in turn will help in giving more loans and help in building a better economy.
The government aims to bring down fiscal deficit to 3.99 percent of GDP this fiscal which will lay down the foundation for reduced usage of cash and replacing it with the digital currency. Digital economy has picked up since old currency was banned, out of 75 crore debit and credit cards, 45 crore are actively used.
With Demonetisation being the hottest debate of the year end 2016. Therefore, it becomes extremely important for us as consumers, we shall pay no extra charge for using debit/credit card to pay bills in order to keep contributing towards the government’s step to bring down the fiscal deficit which eventually would give benefits back to people.
We are sure you have various questions and terms which you are unsure about. We’ve tried to explain what is Fiscal Deficit in simple words and, also how it affects the people living in a cashless society.
Also Read : GST- A Reality For One Unified India
It is very important for you to understand the more complex part of it, A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.Deficit differs from debt, which is an accumulation of early deficits.
A deficit usually gets financed through borrowing money from either central bank of the country or raising money from capital markets by different modes like treasury bills and bonds etc.
Finance minister Arun Jaitley proudly said shifting towards cashless India will help in bridging fiscal deficit, eventually increasing the government’s funding for Rural, Urban and Defence sectors.
With Banks getting cash rich and India moving towards a cashless economy shall lead to empowering of our banking system which in turn will help in giving more loans and help in building a better economy.
The government aims to bring down fiscal deficit to 3.99 percent of GDP this fiscal which will lay down the foundation for reduced usage of cash and replacing it with the digital currency. Digital economy has picked up since old currency was banned, out of 75 crore debit and credit cards, 45 crore are actively used.
With Demonetisation being the hottest debate of the year end 2016. Therefore, it becomes extremely important for us as consumers, we shall pay no extra charge for using debit/credit card to pay bills in order to keep contributing towards the government’s step to bring down the fiscal deficit which eventually would give benefits back to people.
We are sure you have various questions and terms which you are unsure about. We’ve tried to explain what is Fiscal Deficit in simple words and, also how it affects the people living in a cashless society.
Also Read : GST- A Reality For One Unified India
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