Introduction:
Fiscal deficit is an important macroeconomic indicator that represents the difference between government's total spending and its total revenue. It is one of the most widely used measures of a government's financial position and is closely watched by economists, investors and policymakers. In this response, we will explain why fiscal deficit is equal to borrowings.

Explanation:

Definition of Fiscal Deficit: Fiscal deficit is the difference between government's total spending and its total revenue in a given fiscal year.

Components of Fiscal Deficit: Fiscal deficit is made up of two components - revenue deficit and capital expenditure.

Revenue Deficit: Revenue deficit is the excess of government's revenue expenditure over its revenue receipts. In other words, it represents the amount of money that the government borrows to meet its day-to-day expenses.

Capital Expenditure: Capital expenditure is the amount of money that the government spends on long-term investments such as infrastructure, education, healthcare, etc.

Borrowings: Borrowings represent the amount of money that the government borrows from the market to finance its expenditure. It includes both internal and external borrowing.

Relation between Fiscal Deficit and Borrowings:
The government borrows money from the market to finance its expenditure when its revenue receipts are not sufficient to meet its expenses. As explained earlier, revenue deficit is the amount of money that the government borrows to meet its day-to-day expenses. Therefore, fiscal deficit is equal to borrowings because it represents the total amount of money that the government has borrowed from the market to finance its expenditure.

Conclusion:
In conclusion, fiscal deficit is equal to borrowings because it represents the total amount of money that the government has borrowed to finance its expenditure. Borrowings are an important component of fiscal deficit as they allow the government to finance its expenses when its revenue receipts are not sufficient.