1)What is the meaning of the ratio revenue deficit to fiscal deficit?

2)Is QE effectively the opposite of the open-market operations to reduce the money supply, as a failed attempt to reduce inflation?

1)The excess of government revenue expenditure over revenue receipts is known as revenue deficit. On the other hand, the fiscal deficit is the excess of the total government expenditure over total revenue receipts excluding borrowings in a particular year. Basically, fiscal deficit shows the number of borrowings needed by the government in order to finance its expenditure. It shows that the government is unable to finance its expenditure through revenue generated. The ratio of revenue deficit and fiscal deficit depicts what percentage of fiscal deficit is the revenue deficit as revenue deficit is only a part of fiscal deficit.

2)Open market operation refers to the buying or selling of government securities by central bank to or from commercial banks. Open market operations influence the money supply in the economy. Both quantitative easing and open market operations can be used to increase the money supply in the economy. Through quantitative easing government can only increase the money supply and inflation. Through open market operations government can increase or decrease the money supply and inflation. Open market operation can be used to control the inflation in the economy; whereas, quantitative easing could not be used to control the inflation as QE is used to increase the supply of money by increasing the bank loan volumes.