In July 2017,the government of India introduced the new indirect tax regime called Goods and Services tax, that subsumed all other types of taxes ,so that India could have single tax system all over the country for better transparent tax collection. GST enabled the increase in agricultural marketing as well. The simplified tax regime has made it easier to transact in the economy.
Which of the following is not taken into consideration while calculating Revenue Deficit?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: None of the above
Revenue Deficit: The revenue deficit refers to the excess of government’s revenue expenditure over revenue receipts.
Revenue deficit = Revenue expenditure – Revenue receipts
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Receipts from GST: These are part of the government's revenue receipts, so they are included in the calculation of revenue deficit.
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Payment of interest: Interest payments are considered part of revenue expenditure, so they are included in the calculation of revenue deficit.
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Salaries paid to government employees: These are part of revenue expenditure and are included in the calculation of revenue deficit.