Question

what is fiscal deficit and how does the inflation in Indian drives the stock market??

Answer 1

fiscal deficit is the difference between national income and expenditure in a financial year.

Answer 2

Fiscal deficit is the difference between a nation's revenues( primarily tax revenues, for simplicity) and it's expenses in a fiscal year. The deficit urges the govt. to issue debt ( think US Treasuries) and fill the gap so it can continue federal programs like Social security expenses, Medicare/Medicaid, citizen welfare programs, pay salaries to Govt. employees etc. It's a relevant and much-discussed problem now, as highlighted in the context of the recent raging debate regarding the US federal debt limit.