Fiscal deficit simply means that government expenditure is more than the earning. Expenditures include the plan expenditures and non-plan expenditures. Plan expenditures can also be said as the capital expenditures and non plan expenditures can be said as the revenue expenditures.
Fiscal expenditure is taken care by either by borrowing or printing money.
When the government borrows money by issuing bonds, in long term, as per the macroeconomic policy, the bond prices fall and interest rates rise. This affects growth.
When the government chooses to print money, it causes inflation.
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