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Sunday, September 30, 2012

Varous Defcits at a Glance

Fiscal Deficit: Fiscal Deficit (FD) is the difference between total expenditure and total revenue of a government.

Primary Deficit: Primary Deficit  is nothing but Fiscal deficit devoid of the interest paid.

Primary Deficit= Fiscal deficit-Interest Paid

Current Account Deficit (CAD): CAD is the difference (in monetary value) between  imports and exports of a country.

Trade Deficit(TD):  TD is the CAD devoid of  Balance of Payment (BOP) of Investment and Foreign Aids  BOP.
Simply put, TD is the BOP of goods and services only. 


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