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Fiscal Deficit

Fiscal Deficit Definition

Fiscal Deficit is an economic phenomenon, when a government's total expenditures exceed the revenue that it generates. It gives the signal to the government about the total borrowing requirements.


Additional meaning of Fiscal Deficit:

John Maynard Keynes believed that deficits help countries boost their economy, while fiscal conservatives claim that deficit should be avoided in favor of a balanced budget policy.


RELATED TERMS
Budget deficit
Deficit
Deficit hawk
Deficit spending
RELATED CATEGORIES
Economy







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