Answer to Question #91316 in Macroeconomics for Abkaa

Question

Both fiscal and financial year starts on 1 April so how can they not be same
How fiscal deficit is always greater than revenue deficit as fiscal deficit = revenue deficit + capital experenditure - capital receipts .so in case cap receipts are greater than cap exp the answer will come less than revenue deficit so how?
What are some examples of non marketable goods .is fish an example of it but how ?
Why in case of no borrowings , fiscal deficit cannot be zero .as fiscal deficit= borrowings so why not ?

Answer 1

If government expends more than it collects then deficit occurs and its known as fiscal deficit and to finance the deficit it borrows money. If it borrows the amount equals to fiscal deficit, then the budget deficit becomes zero and if it borrows less than the fiscal deficit amount, then budget deficit occurs.

An example of non marketable goods is forest or fish in a river.