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http://wingsforias.blogspot.in/2014/02/indian-scal-policy.html
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7. What are Revenue Decit & Fiscal Decit? Revenue Decit: There are various ways to represent and interpret a government's decit. The simplest is the revenue decit which is just the difference between revenue receipts and revenue expenditures. Revenue Decit = Revenue Expenditure Revenue Receipts (that is Tax + Non-tax Revenue) Revenue expenditures are fairly regular and generally intended to meet certain routine requirements like salaries, pensions, subsidies, interest payments, and the like. Revenue receipts represent regular earnings, for instance tax receipts and non-tax revenues including from sale of telecom spectrums. Fiscal Decit: A more comprehensive indicator of the governments decit is the scal decit. This is the sum of revenue and capital expenditure less all revenue and capital receipts other than loans taken. This gives a more holistic view of the government's funding situation since it gives the difference between all receipts and expenditures other than loans taken to meet such expenditures. Fiscal Decit = Total Expenditure (that is Revenue Expenditure + Capital Expenditure) (Revenue Receipts + Recoveries of Loans + Other Capital Receipts (that is all Revenue and Capital Receipts other than loans taken)) 8. What are these terms: The gross scal decit (GFD), Net Fiscal Decit and Gross Primary Decit? The gross scal decit (GFD) of government is the excess of its total expenditure, current and capital, including loans net of recovery, over revenue receipts (including external grants) and non-debt capital receipts. The net scal decit is the gross scal decit reduced by net lending by government (Dasgupta and De, 2011). The gross primary decit is the GFD less interest payments while the primary revenue decit is the revenue decit less interest payments. 9. How are Central Taxes developed to the State Governments? The Constitution provides for the formation of a Finance Commission (FC) every ve years. Based on the report of the FC the central taxes are devolved to the state governments.