ObjectivesThe main objective of the study is to find out the impact of fiscal deficit on economic growth. The secondary objectives are:- To find out the trend of fiscal deficit and economic growth.- To find out the relationship between fiscal deficit and economic growth.- To find out the average difference between the levels of economic growth over the period of time.- To find out the average difference between the levels of fiscal deficit over the time periodH1: There is a significant impact of Fiscal Deficit and economic growth H2: there is a significant relationship between fiscal deficit and economic growth H3: there is a significant average difference between the levels of economic growth over the periods of time H4: There is a significant average difference between fiscal deficit levels over time periodsMethodologyData CollectionSecondary data collected from Reserve Bank of India India reports were used in this study. Furthermore, textbooks, newspapers and magazines were used in the economic perspective for this study. Example: This study was conducted in Indian perspective, especially on fiscal deficit and economic growth. For the purpose of study, data on fiscal deficit and economic growth from 1970 to 2010 were collected. Data Analysis Method Various statistical methods were used to compare the data. Descriptive statistics used to test sample characteristics. Analysis of time series was also carried out to identify trends over the last forty years. Inferential statistics involves drawing conclusions about a population based only on sample data. Includes regression analyses, correlation analyses, and one-way independent-sample ANOVAs (f-tests). Regression analysis is…half of the paper…growth is significantly affected by other factors. A Durbin-Watson near 2.0 is consistent with no serial correlation, while a number closer to 0 means serial correlation probably exists. In our study, DW has the value 1.46 which is closer to 2.0. So that there is no serial correlation between the variables used in this study. Therefore the H2 is also rejected. Independent sample one-way ANOVA test. One-way ANOVA test can be used to find out the significant average difference in economic growth and fiscal deficit levels between time periods in Sri Lanka's economic perspective. For this reason we classified the time periods in the four segments as between 1970 and 1979; period 1980-1989; period 1990-1999; period between 2000 and 2010. Time period with respect to economic growth Table no. 05: One-way independent sample Anova test