Question

What is meant by revenue deficit?

What is revenue deficit?

Answer 1

The government’s revenue receipts and expenditures are referred to as the revenue shortfall. Capital expenditures and receipts are not included in this. The difference between revenue receipts and revenue expenditures, however, is known as the revenue deficit. Consequently, it can be stated as:

Revenue deficit = Revenue expenditure − Revenue receipts  ....(RE > RR)