Budget terminology:

In the budget statement you come across four types of deficits.

Revenue deficits: it is the excess of revenue expenditure over the income. That is if you are borrowing to pay your car loan or home rent, you are borrowing from someone else and spending but you not creating durable asset. That signifies that you need to repay your borrowing sometime in future. So here it’s only the investment that is taking place but no asset creation.

Budget deficits:: it is the excess of total expenditure over the total income, Which also include current revenue and net internal and external capital income of the government.

Fiscal deficits: it is the difference between total expenditure (revenue, capital, and loans net of repayment) and revenue receipts including all those capital receipts which are not in the form of borrowings but at the end accrue to the government.

Primary deficits: It is the difference between fiscal deficits and interest payments.

It points to government borrowing to pay for its expenses other then interest payments which also include how much government is accumulating to future burden on the basis of past and present policy.