Fiscal deficit:
- The amount of money that the government has to borrow in any year to fill the gap between its expenditures and revenue.
Capex
- money spent towards creating productive assets such as roads, buildings, ports,...
Current Account Deficit(CAD)
- Import and export of goods - "Trade Account"
- Import and Export of Services-" Invisibles account"
A widening CAD tends to weaken the domestic currency.
Updates:
- CAD narrows to 1.5 % of GDP in Q4
- Heavy FPI outflow
- Fiscal deficit touched 12.3% of FY23
- External debt rose $47.1 bn to $620.7 bn in FY22
Source: The Indian Express
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