TWIN DEFICIT
Current account deficit and fiscal deficit together are known as Twin Deficit.
Current account deficit
A current account deficit is a measure of a country’s trade where the value of the goods and services it imports exceeds the value of the goods and services it exports. There are mainly three types of transactions in the current account. The first is the trade of goods and services, the second is the income from employees and foreign investments and the third is the amount of grant money, gifts and remittances sent by the workers settled abroad like current transfer. When these three types of transactions are separated by making two columns in the form of expenditure and income, then it is called balance of current account. If this balance is negative then it is called current account deficit.
International monetary fund (IMF) अन्तर्राष्ट्रीय मुद्रा कोष
Fiscal Deficit
When expenditure is more than the total annual income of the government, it is called fiscal deficit. Fiscal deficit is the difference between the government’s total expenditure and its total receipts. It does not include debt. The higher the fiscal deficit, the greater the debt and interest repayment burden on the government.
Fiscal deficit = budgetary deficit + borrowings and other liabilities of the government
