Home › SBI PO › Financial Awareness › Government Budget › Revenue deficit is defined as the excess of
Revenue deficit is defined as the excess of
Atotal expenditure over total receipts
Binterest payments over tax revenue
Crevenue expenditure over revenue receipts
Dcapital expenditure over capital receipts
Answer & Solution
Correct answer: C. revenue expenditure over revenue receipts
1. The revenue account covers the government's current income and spending.
2. A deficit arises when that spending exceeds that income.
3. So revenue deficit = **revenue expenditure - revenue receipts**.
4. Total expenditure over total receipts is the budget deficit, a different measure, which makes the third option the common trap.
_Source: NCERT Class 12 Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.2.1 Measures of Government Deficit_
Related questions
Net borrowing at home reaches commercial banks indirectly through which requirement?Under the excise structure described, which category bears the heaviest tax?Firms in India are taxed on which basis?From which budget did India stop showing the 'budget deficit' as a separate measure?A large revenue deficit as a share of fiscal deficit signals that borrowing is financing mA revenue deficit implies that the government isFiscal deficit can be written as revenue deficit plus capital expenditure minusWith revenue receipts at 9.2 per cent of GDP and revenue expenditure at 11.8 per cent, the