Revenue receipt- regular income which government get from tax and non-tax.

This are the earning made by the government

Interest on investment, dividend earning and earning from services provided by
this category.

Capital receipt are those receipt which either create labiality for govt or reduces
the assets

Deficit – its is defined as access of total estimated expenditure over total

estimated revenue
Expenditure is greater than receipt

Revenue expenditure- it is defined as exceed of revenue expenditure over

revenue recipet
Revenue deficit = revenue expenditure – revenue receipt
Bcoz of this government is not able to meet its regular expenses

Fiscal deficit- its refers to exceed of total expenditure over total receipt
Fiscal deficit= total expenditure – total receipt
Its implies debt trap
Deficit financing – printing of new notes by RBI

Primary deficit – difference between fiscal deficit of current year and interest
payment of previous year borrowing
  Inflation- demand increases and because of this price of product increase
Reason of inflation- demand increase ,more money
How govt control inflation- central bank is responsible for controlling
inflation by increasing or decreasing interest rate
Lower interest rate then more bank and people can take loan from bank
and money circulation will be increases people have more money then demand
will be increase it increase the rate of inflation

Higher interest rate then no one wants to take loan from bank..less money
circulation than less demand of product its reduced the inflation rate.

By printing more notes can control inflation..

More notes print then inflation increase
Higher taxes can reduced the rate of inflation
Government spending can control inflation