Question

Explain the following concept in your own words.

Revenue Budget

Answer 1

• Revenue Receipts: Income from taxes (like GST, income tax) and non-tax sources (like interest, fees).
• Revenue Expenditure: Day-to-day expenses (like salaries, subsidies, interest payments) that do not create assets.

If spending is more than income, it leads to a revenue deficit.

In short, it deals with the regular income and routine expenses of the government.