CSEET · Economic and Business Environment · Indian Union Budget
In a Union Budget, total revenue receipts are ₹30 lakh crore, of which tax revenue (net to the Centre) is ₹24 lakh crore. Revenue expenditure is ₹37 lakh crore. Which of the following is correct?
Non-tax revenue is 30 minus 24, which is ₹6 lakh crore. Revenue deficit is revenue expenditure minus revenue receipts, 37 minus 30, which is ₹7 lakh crore. So non-tax revenue of ₹6 lakh crore with a ₹7 lakh crore revenue deficit is correct.
- ANon-tax revenue is ₹6 lakh crore and revenue deficit is ₹7 lakh croreCorrect
- BNon-tax revenue is ₹6 lakh crore and revenue deficit is ₹13 lakh crore
- CNon-tax revenue is ₹7 lakh crore and revenue deficit is ₹6 lakh crore
- DNon-tax revenue is ₹13 lakh crore and revenue deficit is ₹7 lakh crore
Explanation
Non-tax revenue = 30 − 24 = ₹6 lakh crore. Revenue deficit = revenue expenditure − revenue receipts = 37 − 30 = ₹7 lakh crore. The option with ₹13 lakh crore wrongly subtracts non-tax revenue from expenditure (37 − 24).
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