The reason the deficit in the annual budget that is financed through borrowings is known as "Fiscal deficit" is as follows:

1.Fiscal Deficit: The fiscal deficit is a key component of a country's budgetary process. It represents the excess of government expenditures (both revenue and capital expenditures) over government revenue (both tax and non-tax revenue) in a given fiscal year.

2.Borrowings: When the government spends more money than it earns in revenue, it needs to bridge this gap by borrowing funds. This borrowing can be from various sources, including domestic and foreign loans, issuance of bonds, or other financial instruments.

3.Total Borrowing Requirements: The fiscal deficit essentially represents the total amount that the government needs to borrow to cover its budgetary shortfall. It indicates the government's overall borrowing needs to finance its operations and meet its spending commitments.

4.Financing through Borrowings: The government uses borrowings to finance the fiscal deficit, and this borrowing is an important aspect of government financing to ensure that budgetary obligations are met.

So, "Fiscal deficit" is the term used to describe this specific kind of deficit that requires financing through borrowings and reflects the total borrowing requirements of the government from all sources. It is a crucial indicator of a government's financial health and its capacity to manage its budget effectively.