Revenue deficit will be calculated through __________.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : Revenue Expenditure - Revenue Receipts
Revenue Expenditure: This includes all expenses incurred for the normal functioning of government departments and for providing various services. It does not create any assets for the government.
Revenue Receipts: These are the income receipts of the government from taxes and other sources that do not lead to any liability or create assets.