What Is the Difference Between Debt And Deficit?

The hard deficit is that debt income and recurrent income are included in normal fiscal revenue. At the same time, debt expenditure and recurrent expenditure are included in normal fiscal expenditure.

Hard deficit

According to this caliber, it is actually a part of

There are two ways to make up for the hard deficit. One is to make up for it by borrowing from banks or overdrafts, and the other is to make up for it by issuing new government bonds. After 1994, in accordance with the Budget Law,

The soft deficit refers to the fact that debt revenue is not included in normal fiscal revenue and debt expenditure is not included in normal fiscal expenditure when statistics and calculations of fiscal revenue and expenditure are made.

The calculation method of the hard deficit is a statistical method of large caliber, and the fiscal deficit formed by the calculation is small caliber. Calculating and counting the fiscal deficit according to this method shows that the government has taken government debt income as a means to make up for the fiscal deficit. If the fiscal deficit still exists after that, the government must use methods other than debt to make up. The calculation method of soft deficit is a small caliber in the statistics of revenue and expenditure, and a large caliber in the fiscal deficit statistics. In accordance with international practice, the use of this method to calculate and calculate the fiscal deficit actually shows that the government uses debt income as the only means to make up for the fiscal deficit.