Fiscal Deficit:
Fiscal deficit refers to the difference between the total expenditure and total receipts of the government, excluding loans and other liabilities. It is an important measure of the financial health of a government and indicates whether the government is spending more than it is earning.

Explanation:
To understand the concept of fiscal deficit, let's break down the components involved:

1. Total Expenditure:
- Total expenditure refers to the sum of all the expenses incurred by the government in a given period.
- It includes both revenue expenditure and capital expenditure.
- Revenue expenditure refers to the day-to-day expenses of the government, such as salaries, pensions, subsidies, interest payments, etc.
- Capital expenditure refers to the investments made by the government in infrastructure, development projects, etc.

2. Total Receipts:
- Total receipts refer to the sum of all the revenues earned by the government in a given period.
- It includes both revenue receipts and capital receipts.
- Revenue receipts include tax revenues, non-tax revenues, fees, fines, etc.
- Capital receipts include borrowings, disinvestment proceeds, recoveries of loans, etc.

3. Loans and Other Liabilities:
- Loans and other liabilities are not included in the calculation of fiscal deficit.
- Loans refer to the borrowings made by the government from various sources, both domestic and international.
- Other liabilities include outstanding payments, deferred liabilities, etc.

4. Fiscal Deficit:
- Once we subtract the loans and other liabilities from the difference between total expenditure and total receipts, we get the fiscal deficit.
- The fiscal deficit represents the shortfall in government revenues compared to its expenses, excluding loans and other liabilities.
- It indicates the extent to which the government needs to borrow to finance its expenses.

Significance:
Fiscal deficit is an important indicator of the financial health of a government. A higher fiscal deficit implies that the government is spending more than it is earning, which can have several implications:

1. Borrowing:
- A higher fiscal deficit necessitates increased borrowing by the government to finance its expenses.
- This can lead to an increase in the overall debt burden of the government.

2. Inflation:
- Increased government spending can lead to higher demand in the economy, which may result in inflationary pressures.
- This can impact the purchasing power of the currency and reduce overall economic stability.

3. Interest Payments:
- A higher fiscal deficit can lead to increased interest payments on borrowings, which can further strain the government's finances.

4. Investment and Growth:
- A high fiscal deficit can crowd out private investment by increasing the demand for funds in the economy.
- This can impact economic growth in the long run.

Overall, monitoring fiscal deficit is crucial for maintaining fiscal discipline and sustainable economic growth. By controlling the fiscal deficit, the government aims to ensure fiscal stability, reduce the debt burden, and promote long-term economic prosperity.