Revenue deficit in the government budget can be managed through:-

(A) Borrowings from RBI.
(B) Disinvestment.
(C) Increasing Subsidy.
(D) Borrowings from the general public.

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (2) → (A), (B) and (D) only

Revenue deficit occurs when the government's revenue expenditure exceeds its revenue receipts. It reflects that the government is not earning enough to cover its regular expenses and needs to raise funds to manage the shortfall.

(A) Borrowings from RBI – Correct. The government may borrow from the Reserve Bank of India to meet its revenue deficit.

(B) Disinvestment – Correct. Selling shares of Public Sector Undertakings (PSUs) can raise funds to finance the deficit, though it is a capital receipt, it helps manage fiscal imbalances.

(C) Increasing Subsidy – Incorrect. This would increase the government’s expenditure and worsen the revenue deficit.

(D) Borrowings from the general public – Correct. This includes issuing government bonds and securities to raise money from the public, a common tool to manage deficits.