What Is a Fiscal Deficit?

A fiscal deficit occurs when a government’s revenue falls short of its spending. A government with a budgetary deficit is spending more than it can afford.
A fiscal deficit is measured as a percentage of GDP, or simply as total dollars spent over revenue. In any scenario, the income number only includes taxes and other receipts, not money borrowed to make up the difference.
Fiscal deficits are not the same as fiscal debt. The latter refers to the overall debt that has accrued as a result of years of deficit spending.

A country has fiscal deficit when the expenditure is more than the revenues .

Sometimes it’s good to have a fiscal deficit for achieving growth in economy esp during recessions.

Usually markets are fine to have a fiscal deficit of 3.5 of GDP , above that its not accepted usually but again there are multiple parameters comes into picture while deciding the upper limit of deficit.

Example : You should check India’s annual budget . India spends more than it’s revenues , so the country ends up having fiscal deficit.