Public Expenditure and Fiscal Deficit in Indian Economy

Abstract

Public expenditure is a very important aspect of the budget as it plays an important role in determining the size of the revenue deficit and fiscal deficit and sheds light on the nature of the government's policies. On the basis of public expenditure it can be known that the reason for increase in fiscal deficit is revenue expenditure or capital expenditure. The severity of the fiscal deficit is greater when the increase in the deficit is the result of a revenue deficit. An increase in the fiscal deficit will necessarily be worse when the increase is due to an increase in the revenue deficit. And revenue expenditure is not like expenditure related to upgradation