Volume 7 | Issue - 1 articles in press
Volume 7 | Issue - 1 articles in press
Volume 7 | Issue - 1 articles in press
Volume 7 | Issue - 1 articles in press
Volume 7 | Issue - 1 articles in press
When the government's annual spending exceeds its annual revenue, a fiscal deficit occurs. This increases the pressure on the rupee. it's imperative to increase exports swiftly and cut back on non-essential luxury items in order to address the fiscal imbalance. Projecting of Fiscal deficit would be handy for finance ministry to plan about its financing without disturbing inflation rate & Exchange rate. An average 80% of funds government borrows through floating G-sec & Treasury Bills. ARMA or ARIMA is an apt tool for forecasting the fiscal deficit, it is auto regressive hence deficit of the current period largely depends previous disbursements. (Yt =α+ Y (t-p) + et)It also moves with average in recursive manner hence debt servicing on primary deficit is essential & the average amount of primary deficit rolls out with interest (Yt = α+ Y (t-q) + et).