In a government budget, if revenue receipts are Rs.1000, capital receipts are 250, revenue deficit is 500. What will be the revenue expenditure?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 1500
Given:
Revenue receipts = 1,000
Revenue deficit = 500
Capital receipts = 250 (not needed)
Revenue deficit = revenue expenditure − revenue receipts, so revenue expenditure = revenue deficit + revenue receipts.
Revenue expenditure = 500 + 1,000 = 1,500
Capital receipts belong to the capital account and play no part in the revenue deficit.
Option (3) 1750 — this adds the capital receipts as well (1,750).
NCERT (2026-27): “5.2.1 Measures of Government Deficit … Revenue Deficit: The revenue deficit refers to the excess of government’s revenue expenditure over revenue receipts Revenue deficit = Revenue expenditure – Revenue receipts” “… The revenue deficit includes only such transactions that affect the current income and expenditure of the government. …” |