Calculating the Fiscal Deficit

To calculate the fiscal deficit, we need to understand the components involved. The fiscal deficit is the difference between the government's total expenditure and its total revenue (excluding borrowing). In this case, we have been given the budgetary deficit and the borrowing and other liabilities.

1. Budgetary Deficit:
The budgetary deficit represents the excess of the government's total expenditure over its total revenue. In this case, the budgetary deficit is rupees 25000 crores.

2. Borrowing and Other Liabilities:
Borrowing and other liabilities represent the amount of money the government has borrowed or has to repay in the future. It includes both internal and external borrowings. In this case, the borrowing and other liabilities amount to rupees 7000 crores.

3. Calculation of Fiscal Deficit:
To calculate the fiscal deficit, we subtract the borrowing and other liabilities from the budgetary deficit.

Fiscal Deficit = Budgetary Deficit - Borrowing and Other Liabilities

Fiscal Deficit = 25000 crores - 7000 crores

Fiscal Deficit = 18000 crores

Therefore, the fiscal deficit is rupees 18000 crores.

Conclusion:
The fiscal deficit is an important indicator of a government's financial health. It shows the extent to which a government is reliant on borrowing to fund its expenses. In this case, the fiscal deficit is 18000 crores, which suggests that the government is borrowing a significant amount to cover its expenditure. It is important for governments to manage their fiscal deficit effectively to maintain economic stability and sustainability.