Fiscal deficit in the Union Budget means:

Fiscal deficit represents the total borrowing requirement of the government to bridge the gap between its total expenditure and its total non-debt receipts [1]. It is a comprehensive measure of fiscal health that indicates the actual liability of the government at a specific point in time [2]. Formally, it is defined as the sum of the budgetary deficit (which historically represented borrowings from the Reserve Bank of India) and the net increase in internal and external market borrowings and other liabilities [2][3]. While the specific term 'budgetary deficit' was largely discontinued as a primary policy parameter in 1997, the fiscal deficit remains the key indicator of the government's total reliance on borrowed funds from all sources, including domestic debt securities and external loans, to finance its operations [1][3]. This distinguishes it from the revenue deficit, which only considers current expenditure and revenue.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.5 Government Deficits > p. 153
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > N. Fiscal Deficit > p. 110
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > 2. I. Budget Deficit (or Government Deficit) > p. 109