Question

Which of the following formulas correctly defines Revenue Receipts?

Options

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

• \[ \text{Revenue Receipts} = \text{Tax Revenues} + \text{Non-Debt Creating Capital Receipts} \]

• \[ \text{Revenue Receipts} = \text{Tax Revenues} + \text{Non-Tax Revenues} \]

• \[ \text{Revenue Receipts} = \text{Total Expenditure} - \text{Fiscal Deficit} \]

Answer 1

Revenue Receipts are the sum of Tax Revenues and Non-Tax Revenues. Non-Debt Creating Capital Receipts belong to the capital side of the budget and are used in computing the Fiscal Deficit, not Revenue Receipts.