Deficit Formulas
Budgetary deficit = Total expenditure – Total receipts or TE>TR
Fiscal deficit = Total expenditure – Total receipts excluding borrowings.
Primary deficit = Fiscal Deficit-Interest payments.
Revenue deficit = Total revenue expenditure – Total revenue receipts. Or TRE>TRR
Effective Revenue Deficit= Revenue Deficit – Grants in aid for the creation of capital assets.
It was suggested by the Rangarajan Committee on Public Expenditure and was introduced in the Union Budget 2011-12.
