Which of the following is true in regards to "Revenue deficit"?

• It indicates that the government is unable to meet its major expenses involving construction etc.
• Revenue deficit implies dis-savings on government account because government is using saving to meet the routine needs. 
• It means that revenue deficit either leads to an increase in the asset or reduces the liability
• Revenue deficit can be reduced by increasing the tax rates

2 and 4

The correct answer is Option 2: 2 and 4

1. It indicates that the government is unable to meet its major expenses involving construction etc. This is false. A revenue deficit occurs when the government's revenue expenditure exceeds its revenue receipts. It does not involve capital expenditures like construction, which are part of the capital account.

2. Revenue deficit implies dis-savings on government account because the government is using savings to meet routine needs. This is true. A revenue deficit means the government is unable to cover its routine (day-to-day) expenses with its income and may have to dip into savings or borrow to fund these expenses.

3. It means that revenue deficit either leads to an increase in the asset or reduces the liability. This is false. A revenue deficit does not result in asset creation or liability reduction. In fact, it indicates that the government is using its income for current consumption, not for asset creation.

4. Revenue deficit can be reduced by increasing the tax rates. This is true. By increasing tax rates, the government can raise more revenue, thereby reducing the revenue deficit.