Revenue deficit is equal to : |
Total expenditure - Revenue receipts Revenue expenditure - Revenue receipts Fiscal deficit- Interest payments Fiscal deficit - Revenue expenditure |
Revenue expenditure - Revenue receipts |
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. |