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  BUDGET DEFICITS Photo credit: Keydifferences.com The Budgetary deficits are being often discussed in various economic and financial forums. It has impact on Government spending and hence overall wellbeing of the citizens are affected due to these deficits. Let us understand the meaning of commonly used deficit terms. There are 3 main budgetary deficits: Fiscal Deficit Primary Deficit Revenue Deficit To understand these common deficits, we must be clear on 2 concepts i.e Revenue receipts/expenditure and Capital receipts/expenditure. Revenue Receipts/Expenditure: The receipts and expenditures that are in the nature of day-to-day operations are covered under this. Capital Receipts/Expenditure: The receipts and expenditures that are long term in nature and are used for many years are covered under this.   Examples: Tax Receipts Revenue receipts Interest expenditure Revenue expenditure Debt receipts Ca...