Calculate the value of revenue deficit, if tax revenue is ₹1000 crores, non-tax revenue is ₹500 crores, capital receipts are ₹2000 crore and revenue expenditure are ₹4000 crore.
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : ₹2,500 crores
Given:
- Tax revenue = ₹1000 crores
- Non-tax revenue = ₹500 crores
- Revenue expenditure = ₹4000 crores
Total Revenue: Add tax revenue and non-tax revenue.
Total Revenue = ₹1000 crore + ₹500 crore = ₹1500 crore
Revenue Deficit: Subtract total revenue from revenue expenditure.
Revenue Deficit = Revenue Expenditure - Total Revenue
Revenue Deficit = ₹4000 crore - ₹1500 crore
= ₹2500 crore