The correct answer is: Excess of expenditure over revenue.
Fiscal deficit is the difference between a government’s total expenditure and total revenue over a particular period of time, usually a year. A fiscal deficit occurs when a government spends more money than it takes in through taxes and other revenue sources.
There are two main types of fiscal deficits: cyclical and structural. Cyclical deficits are caused by fluctuations in the economy, such as recessions. Structural deficits are caused by long-term problems, such as an aging population or a high level of government debt.
Fiscal deficits can be financed in a number of ways, including borrowing, printing money, or selling assets. Borrowing is the most common way to finance a fiscal deficit. When a government borrows money, it issues bonds, which are essentially loans that the government promises to repay with interest. Printing money is another way to finance a fiscal deficit, but it can lead to inflation. Selling assets is another way to finance a fiscal deficit, but it can reduce the government’s wealth.
Fiscal deficits can have a number of economic consequences, both positive and negative. On the positive side, fiscal deficits can help to stimulate the economy during a recession. On the negative side, fiscal deficits can lead to higher interest rates, inflation, and a decrease in the value of the currency.
The government’s fiscal policy is one of the most important tools that it has to manage the economy. A well-designed fiscal policy can help to promote economic growth and stability. However, fiscal policy can also be used to achieve other goals, such as reducing inequality or promoting social welfare.
Excess of revenue over expenditure is called a fiscal surplus. A balanced budget occurs when a government’s total expenditure equals its total revenue. Lack of financial planning is not a term that is typically used in economics.