CSEET · Economic and Business Environment · Indian Union Budget
Revenue receipts are Rs 30,00,000 crore and revenue expenditure is Rs 37,00,000 crore. Which statement is correct?
Revenue deficit is Rs 7,00,000 crore, because revenue expenditure of Rs 37,00,000 crore exceeds revenue receipts of Rs 30,00,000 crore. It means the government borrows to finance part of its current spending, which reduces resources for asset creation.
- ARevenue deficit is Rs 7,00,000 crore, meaning borrowing partly funds day-to-day spendingCorrect
- BRevenue surplus of Rs 7,00,000 crore exists
- CRevenue deficit is Rs 67,00,000 crore
- DRevenue deficit is Rs 7,00,000 crore, and it is met entirely from capital receipts that are non-debt
Explanation
Revenue deficit = revenue expenditure - revenue receipts = 37,00,000 - 30,00,000 = Rs 7,00,000 crore. Since it is a deficit, the government must borrow to meet current consumption-type spending, which is undesirable. A surplus would need receipts to exceed expenditure, and the last option wrongly says non-debt capital receipts cover it entirely, which is not stated.
Did you get it right without looking?
One question tells you little. A timed set on Indian Union Budget shows your real accuracy, how long you take and where you lose marks.
More Indian Union Budget questions
- Which of the following is a feature of a zero-based budgeting approach, as distinct from the traditional incremental approach?
- Which of the following is generally regarded as a core objective of the Union Budget in a mixed economy like India?
- In a year, a government has a fiscal deficit of ₹16 lakh crore, interest payments of ₹10 lakh crore and a revenue deficit of ₹7 lakh crore. …
- Under Article 112 of the Constitution of India, the document laid before Parliament each year showing the Government's estimated receipts an…
- Which statement about the escape clause in the FRBM framework is correct?
- In the Indian Union Budget, the revenue deficit is defined as the excess of: