Revenue deficit is the excess 01 revenue expenditure of the government over Its revenue receipts fiscal deficit IS the excess of total budget expenditure over total budget receipts excluding borrowing, Fiscal deficit points to borrowing requirement of the government. As fiscal deficit mount up, increasingly larger part of GOP siphoned off to pay the existing loans.
Accordingly, resources available for revenue expenditure are reduced. Growth process is hindered The government is once again compelled to take loans adding to its fiscal deficit.
Thus revenue deficit and fiscal deficit tend to push up each other.