Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Revenue deficit is equal to :

Options:

Total expenditure - Revenue receipts

Revenue expenditure - Revenue receipts

Fiscal deficit- Interest payments

Fiscal deficit - Revenue expenditure

Correct Answer:

Revenue expenditure - Revenue receipts

Explanation:

The correct answer is option (2) : Revenue expenditure - Revenue receipts

Revenue deficit specifically refers to the excess of revenue expenditure over revenue receipts of the government. It indicates that the government is not generating enough revenue to cover its day-to-day expenses, excluding capital expenditures.