*Deficits* : The gap between the receipts and expenditure is called deficit. So, it is a shortage of money for expenditure. Here are some deficits you must know. * *Budget Deficit* = Total Expenditure – Total Receipts * *Revenue Deficit* = Revenue Expenditure – Revenue Receipts * *Effective Revenue Deficit* = Revenue Deficit – Grant in aid for creation of capital assets * *Fiscal Deficit* = Total Expenditure – Total Receipts except Borrowing and Other liabilities * *Primary Deficit* = Fiscal Deficit – Interest Payment * *Monetised Deficit* = Borrowings from RBI + Draw down balance of government from RBI Source: IE