Question

Revenue Deficit is equal to:

Options

• \[\text{Revenue Receipts} - \text{Revenue Expenditure}\]

• \[\text{Total Receipts} - \text{Total Expenditure}\]

• \[\text{Fiscal Deficit} - \text{Interest Payments}\]

• \[\text{Revenue Expenditure} - \text{Revenue Receipts}\]

Answer 1

The formula is \[\text{Revenue Deficit} = \text{Revenue Expenditure} - \text{Revenue Receipts}\]. It measures the excess of the government's revenue expenditure over its revenue receipts. The expression Fiscal Deficit minus Interest Payments gives the Primary Deficit, not the Revenue Deficit.