ACKNOWLEDGEMENT

It is not possible to prepare a project without the assistance & encourages of

other people. This one is certainly no exception.
I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and Mats Law School. I would like to extend
my sincere thanks to all of them.
I would like to express my special thanks of gratitude to our faculty (Mr. Sugato C
Mukherjee). I am really thankful towards my faculty of economics for his helping and liberal
behaviour towards each and every student, and I really appreciate the issues sir raises
regarding the current affairs, which are so important to focus on. Our sir is a real inspiring
personality for me as he made me understood the topics so nicely that I wont forget it in my
entire lifetime and he also helped me in doing a lot of Research and I came to know about so
many new things I are really thankful to them.
Next, I convey my sincere thanks and gratitude to my friends, who helped me and
supported me in every step of my studies and my loving family for rendering constructive and
valuable suggestions and comments that have helped a lot in improving the quality and
content of the project and also helped me complete the project in limited time frame.

Thank You

DECLARATION
I hereby declare that the project work entitled FISCAL DEFICIT IN INDIA submitted to
the MATS University is the original work done by me under the guidance of Sugato
Mukherjee , Asst. Proff. MATS Law School, Pandri, Raipur, and this project has not
performed the basis for the award of any Degree or diploma and similar project if any.

DATE:

Abhishek Mishra
Pragati Dewangan

SIGNATURE:

Semester VII (4th year)

B.A. LL.B

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge. Redman and Mory
define research as a systematized effort to gain new knowledge. Some people consider
research as a movement, a movement from the known to the unknown. It is actually a voyage
of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown
confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller
understanding of the unknown. This inquisitiveness is the mother of all knowledge and the
method, which man employs for obtaining the knowledge of whatever the unknown, can be
termed as research.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody, research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the
Encyclopedia of Social Sciences define research as the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art. Research is, thus, an
original contribution to the existing stock of knowledge making for its advancement. It
is the pursuit of truth with the help of study, observation, comparison and experiment. In
short, the search for knowledge through objective and systematic method of finding solution
to a problem is research. The systematic approach concerning generalization and the
formulation of a theory is also research. As such the term research refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis, collecting the facts
or data, analyzing the facts and reaching certain conclusions either in the form of solutions(s)
towards the concerned problem or in certain generalizations for some theoretical formulation.

OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Though each research study has its own specific
purpose, we may think of research objectives as falling into a number of following broad
groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this
object in view are termed as exploratory or formulative research studies);
2. To portray accurately the characteristics of a particular individual, situation or a group
(studies with this object in view are known as descriptive research studies);
3. To determine the frequency with which something occurs or with which it is associated
with something else (studies with this object in view are known as diagnostic research
studies);
4. To test a hypothesis of a causal relationship between variables (such studies are known as
hypothesis-testing research studies).

TYPES OF RESEARCH
The type of information you want to gather about your customers, market or competitors will
influence the research methods you choose. There are different ways to gather
information (from primary or secondary sources) and different types of information to
gather (quantitative and qualitative). You may use any combination of these research
approaches to get the results you need.

PRIMARY AND SECONDARY RESEARCH

Primary and secondary research relate to the way you gather information.
PRIMARY RESEARCH
Primary research (or field research) gathers original information directly for your purpose,
rather than being gathered from published sources. Primary research includes:

surveys

direct observations

interviews and focus groups that are developed and conducted by you or your
researcher.
Primary research gives you control over the type of questions you ask and information you
gather. Primary research results can be extremely valuable; however, they can also be much
more time-consuming and costly to gather than secondary research.
You may choose to use primary research methods once you have conducted secondary
research to determine what information already exists.
SECONDARY RESEARCH
Secondary research (or desk research) gathers existing information through available sources.
Secondary research examples include:

information on the internet

existing market research results

existing data from your own stock lists and customer database

Information from agencies such as industry bodies, government agencies, libraries

and local councils.
Secondary research allows you to make the most of existing information about your market.
However, it can be a challenge to find the information you really need.
You may use secondary research to get an initial understanding of your market. It is often
faster to analyze than primary data because, in many cases, someone else may have already
started analyzing it. However, when using secondary research be careful how you interpret it,
as it may have been collected for a different purpose or from a market segment that isn't
relevant to your business. Also make sure that any secondary information isn't out-of-date, as
the market can change quickly and this will affect your results.

QUANTITATIVE AND QUALITATIVE RESEARCH

Quantitative and qualitative research defines the type of information you gather.
Quantitative research
Quantitative research gathers numerical data. Quantitative research includes:

surveys on customer return frequency

sales figures

industry product sales numbers

Financial trends.
You can use this approach to identify the size of your market and how much it might be
worth to your business, and to find areas for sales growth. Quantitative research can also help
you understand the demographics of customers, such as their age and gender.
Quantitative research often produces a lot of statistics. These are useful as an overview of
your market, but make sure you don't rely solely on statistics in your research. Consider all of
the information you have. For example, the 'average' price your target market suggested it
would pay for a product could be distorted if a few a participants selected a very high amount
(i.e. not reflecting the high number who would not pay that much).
Qualitative research
Qualitative research gathers views and attitudes. Qualitative research includes:

focus groups with customers and potential customers to understand their feelings and
attitudes towards your products and services

formal and informal conversations with customers about their satisfaction with your
business

visits and reviews of competitors to understand their products and customer service
practices.
You can use this approach to get a better understanding of your customers' interests, needs
and habits, and identify opportunities for growing sales and improving customer service.
Analyzing qualitative data requires a different approach and can take longer to interpret than
quantitative data because of the nature of the information.
PROJECT RESEARCH
The way of research is Secondary research
The type of research is Qualitative research.
My project is based on secondary research as my research is conducted on the basis of data
collected by source, nor by self experiment. As the data for this project is collected by books,
web and other indirect resources, this project strictly adopt the concept of secondary research
methodology.

TABLE OF CONTENT

SNO.

TOPIC

PAGE NO.

1.

Introduction

2.

Budgetary Deficit
Revenue deficit
Capital deficit
Primary deficit
Monetised deficit
Fiscal deficit

3.

Fiscal deficit

4.

Components of fiscal deficit

5.

Causes of fiscal deficit

6.

Reasons for high fiscal deficits

7.

Indian fiscal deficits and current affairs

8.

How fiscal deficit can be bad for India

9.

Conclusion

1-3

REFERENCES

www.cliffnotes.com
www.preservearticles.com
www.lawteachers.net
www.wikipedia.com
www.govtbudgets.com