Budget 2026: Types of deficits and how they are calculated. A complete guide

Types of Deficits Explained: As Union Budget 2026 approaches, understanding fiscal deficits is crucial for assessing a nation's financial health. A deficit signifies the imbalance between the government’s expenditures and revenues. A deficit occurs when a government spends more money than it collects through various sources of revenue. There are mainly three types of budget deficits: Revenue deficit, fiscal deficit and primary deficit.