The excess of Government's Revenue Expenditure over Revenue Receipts is called................
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Revenue Deficit
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Revenue Deficit occurs when the Government’s Revenue Expenditure exceeds its Revenue Receipts.
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Revenue Deficit=Revenue Expenditure−Revenue Receipts
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It indicates that the government’s current income is insufficient to meet its current expenses, meaning it is not able to cover its day-to-day operations (like salaries, subsidies, and interest payments) from its regular income (like taxes and fees).