CA Foundation · Business Economics · Public Finance
In a government budget, revenue receipts are Rs 15,00,000 crore, revenue expenditure is Rs 18,50,000 crore, and the capital expenditure is Rs 7,00,000 crore. Non-debt capital receipts are Rs 1,00,000 crore. What is the revenue deficit?
Revenue deficit equals revenue expenditure minus revenue receipts, which is 18,50,000 minus 15,00,000, giving Rs 3,50,000 crore. Capital expenditure and non-debt capital receipts are not part of this calculation, as it only compares the current revenue account.
- ARs 2,50,000 crore
- BRs 3,50,000 croreCorrect
- CRs 9,50,000 crore
- DRs 10,50,000 crore
Explanation
Revenue deficit = revenue expenditure - revenue receipts = 18,50,000 - 15,00,000 = Rs 3,50,000 crore. Rs 2,50,000 crore wrongly subtracts non-debt capital receipts as well. The other figures bring in capital expenditure, which has no place in the revenue deficit.
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