Economy related query!
 

salam,
Please explain
what is meant by 'Percentage of GDP''?
For example
''8.0% fiscal deficit of GDP''
and
''3.50% of GDP''.

[B]Fiscal deficit : [/B]
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.
[CENTER]OR[/CENTER]
Government deficit or surplus is the difference between government receipts (mainly tax revenue) and government spending (i.e. salaries of government employees, social benefits, interest on the public debt) in a single year. A deficit occurs when the outlays of a government exceed the inlays; a surplus is when revenues are higher than expenditure. This ratio is usually presented as a percent of gross domestic product (GDP).

[B]Debt to GDP ratio:[/B]
A measure of a country's federal debt in relation to its gross domestic product (GDP). By comparing what a country owes to what it produces, the debt-to-GDP ratio indicates the country's ability to pay back its debt.

@ Dr Shabbir Ahmed
thanks for your prompt reply. I got almost 90% of my query. But, one more question: what would be called as a lethal value of fiscal deficit... , Which is currently 8.8% of GDP of Pak?

go through the following link. all your concepts related to fiscal deficit will be cleared.
[url]https://en.wikipedia.org/wiki/Government_budget_balance[/url]