Formulas of Deficits in Budget
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.