Fiscal deficit refers to excess 01 government expenditure over its receipts exclusive of borrowing Thus, fiscal deficit points to borrowings requirement of the government to cope with its expenditure of he year Higher borrowing implies higher burden of repayments of loans and of Interest on the future genera lion As this burden mounts up, year after year, resource base future generation tends to shrink. This will definitely retard the process of future growth. Particularly, when borrowings by the government are used for non-productive purpose