The excess of Government's Revenue Expenditure over Revenue Receipts is called................

Revenue Deficit

The correct answer is Option (1) → Revenue Deficit

• Revenue Deficit occurs when the Government’s Revenue Expenditure exceeds its Revenue Receipts.

• Revenue Deficit=Revenue Expenditure−Revenue Receipts

• 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).