The excess of total expenditure of Government over its total receipts, excluding borrowings, is known as

Fiscal deficit is defined as the excess of the government's total expenditure over its total receipts, excluding borrowings [3]. It represents the total borrowing requirements of the government from all sources during a fiscal year [2]. While total receipts include both revenue and capital receipts, the calculation of fiscal deficit specifically excludes debt-creating capital receipts (borrowings) to reflect the actual gap that needs to be financed [2]. In contrast, the primary deficit is derived by subtracting interest payments from the fiscal deficit to focus on current fiscal imbalances [1]. The fiscal deficit is a critical indicator of the government's financial health and its impact on the economy's money supply and inflation. It essentially shows the extent to which the government is spending beyond its earned income.

Sources

1. [3] https://www.investopedia.com/terms/d/deficit.asp
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.5 Government Deficits > p. 153
3. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Gross fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad > p. 72