Question

If a government's revenue expenditure is ₹700 crore and its revenue receipts are ₹550 crore, the Revenue Deficit is:

Options

• ₹50 crore

• ₹700 crore

• ₹150 crore

• ₹1,250 crore

Answer 1

Using \[ \text{Revenue Deficit} = \text{Revenue Expenditure} - \text{Revenue Receipts} \], we get ₹700 crore − ₹550 crore = ₹150 crore. Since revenue expenditure exceeds revenue receipts, the government faces a revenue deficit of ₹150 crore.