Glossary
Revenue deficit
M7.04Also called revenue deficit, current deficit.
The part of the government's shortfall that funds consumption rather than investment.
A ₹17 lakh crore fiscal deficit with ₹11 lakh crore of capital spending implies a revenue deficit of ₹6 lakh crore.
The distinction matters because borrowing to build a road that raises future output is different from borrowing to pay salaries. The first can be self-financing; the second adds to debt with no corresponding asset.
The composition tells you more than the total.