CBSE 2016 Class 12 Economics Delhi Set-3

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Question : 1
Total: 5
SECTION -B
(Macro-economics)

What is revenue deficit in government budget?
Solution:  
Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Revenue deficit implies that the government is not able to cover its revenue expenditure by its revenue receipt. In other words, the consumption and administrative expenditure of the government is greater than its tax and non-tax receipts.

Algebraically it is depicted as
Revenue Deficit = Revenue Expenditure = Revenue Receipts.
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