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?

Receipts from GST Payment of interest Construction of Dams Salaries paid to government employees

Construction of Dams

Revenue Deficit: The revenue deficit refers to the excess of government’s revenue expenditure over revenue receipts. Revenue deficit = Revenue expenditure – Revenue receipts Construction of dams is a capital expenditure.