CA Foundation · Business Economics · Public Finance
In a Union Budget, total revenue receipts are Rs 20,00,000 crore and total revenue expenditure is Rs 26,00,000 crore. What is the revenue deficit?
The revenue deficit is Rs 6,00,000 crore. It is found by subtracting revenue receipts of Rs 20,00,000 crore from revenue expenditure of Rs 26,00,000 crore. The deficit shows that the government's current spending exceeds its current income by that amount.
- ARs 6,00,000 croreCorrect
- BRs 46,00,000 crore
- CRs 20,00,000 crore
- DRs 26,00,000 crore
Explanation
Revenue deficit = revenue expenditure - revenue receipts = 26,00,000 - 20,00,000 = Rs 6,00,000 crore. Adding the two figures (Rs 46,00,000 crore) is wrong because a deficit is a difference, not a sum.
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