---
title: "Budget Deficit: Meaning, Types & FRBM | Model Diplomat"
description: "A budget deficit is government spending minus revenue, excluding borrowings. Learn how it differs from fiscal deficit and the FRBM Act targets for UPSC GS3."
url: "https://modeldiplomat.com/learn/glossary/budget-deficit"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- A budget deficit is the amount by which a government's total expenditure exceeds its total revenue, excluding borrowings, in a given fiscal year.
- What is the difference between a budget deficit and a fiscal deficit?
- How does the FRBM Act regulate India's budget deficit?
- Why do off-budget borrowings matter for the deficit?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In the Union Budget 2024-25 presented on 23 July 2024, Finance Minister Nirmala Sitharaman set the fiscal deficit target at 4.9 per cent of GDP, down from the COVID-era peak of 9.2 per cent recorded in 2020-21.

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