The topic is related to the "FISCAL DIFICIT & WHY IT IS IMPORTANT ?" PRESENTED BY SACHIN PRATAP SINGH SACHIN GROUPS MBA STUDENTS , RESEARCHER, SPEAKER.

1. WHATISFISCALDEFICIT?WHYITIS
IMPORTANT?
PRESENTED BY:-
SACHIN PRATAP SINGH
MBA STUDENT, RESEARCHER, SPEAKER
SACHINGROUPS

2. FISCAL DEFICIT :-
 India’s fiscal deficit in the first half of the financial year rose to
₹6.2 lakh crore, from ₹5.27 lakh crore a year earlier, though
rising tax collections helped offset a higher subsidy bill.
 ● The Union government’s spending bill is expected to rise by
almost ₹2 lakh crore this fiscal, according to several economists’
estimates, on higher allocations for subsidies, stretching the
fiscal deficit.
 However, a rise in goods and services tax receipts helped by a
pick-up in urban demand and higher inflation could help to meet
the budgeted fiscal deficit target.
 SACHINGROUPS

3. What is Fiscal deficit?
 Fiscal deficit is defined as the difference between
the total revenue and total expenditure of the
government.
 It helps indicate the total borrowing that the
government would need a particular financial
year.
 SACHINGROUPS

4. Why is fiscal deficit important for the
economy?
 When it comes to the impact of fiscal deficits, there are various
opposing perspectives.
 On one hand, it is believed that fiscal deficits can boost a
sluggish economy by increasing the spending power of people
for investment.
 However, on the other hand, it is also believed that long-term
deficits can negatively impact economic growth and stability.
 The fiscal deficit is keenly observed during the Union Budget
presentation as it can impact various factors such as growth,
stability of price, production costs, and inflation.
 SACHINGROUPS

5. If the fiscal deficit is large enough, it can also affect the country’s
ratings.
For instance, when the government continues borrowing and stops
printing currency notes, there is an upwards pressure on interest
rates.
Increased interest rates then result in increased production costs
which lead to higher prices.
However, the impact of fiscal deficit on inflation depends on the kind
of expenditure undertaken by the government.