What is Fiscal Deficit Fiscal deficit is measured in terms of the percentage of GDP of a country. The higher the percentage of the fiscal deficit the difficult is it for the country. Increase in the fiscal deficit would point that the spending is increasing at a faster pace as compared to the earning of the country. So to finance this spending country will have to borrow debt from different sources.
Total ExpenditureRevenue Expenditure XXCapital Expenditure XX XXLess: Total ReceiptsRevenue Receipts XXRecoveries of Loans XXOther Capital Receipts XX (XX)Fiscal Deficit XX
Problem Statement Our research aims to understand Fiscal Deficit and the ways reduce the same in the developing country like India.
Research Objective• To understand the state of fiscal deficit in India.• To identify the strategies to reduce the Fiscal deficit in India.• To recommend a framework to reduce the Fiscal Deficit.
Sample Design The sampling method used is Convenience Sampling Method. The sample size we have interviewed is 25 people. We have selected people with the sound knowledge about the topic.
Ways to reduce Fiscal Deficit Proper distribution system Raising import taxes and prices of petroleum products Cutting down expenses on government depts Subsidy at the input level Cutting the corruption tentacles Improve the Government Investment