What are the differences between fiscal deficit, revenue deficit, public debt and public (general) debt (including debt of state governments)? What's their significance?

The fiscal deficit is basically the shortage of government?s income compared to its spending. It means that the government is spending more than its revenue. Income includes revenues from tax and other revenues excluding the borrowed money.

Revenue deficit is simply the revenue expenditure of the government minus the revenue receipts during a fiscal year. It shows the government?s inability to meet its expenditures in the introduced budget. Other sector?s savings are used to finance consumption expenditure.

Public debt, also known as government debt is an annual budget deficit of the government. The budget deficit is total expenditure minus the total receipts of the government. Public debt is the annual budget deficit, and it is created by issuing bills and government bonds by the government.

State government or municipals may also borrow. Debt can be created by the issue of bonds by the local governments. It is public debt created by the state government.

These debts and deficits help the policymakers and economists to make informed decisions, improve implemented policies, introduce new strategies, and analyze various factors in an economy. These help in taking measures to control and prevent inflation in an economy.