SSC CGLEconomy

Public Finance

1 SSC CGL Economy previous year questions on Public Finance — options free on every question; 1 include the answer & explanation free, the rest unlock with PYQ Pass.

Q1 FREE PREVIEW
PYQ
If the government revenue expenditure exceeds revenue receipt, it is called:
arevenue deficit
bprimary deficit
ccapital deficit
dfiscal deficit
✓ Correct answer: a) revenue deficit
ExplanationIf a government's revenue expenditure exceeds its revenue receipts, it is referred to as a "revenue deficit." This situation occurs when the government's total expenditures on day- to-day operational activities, subsidies, and interest payments surpass its total revenue generated from sources like taxes, fees, and other non-borrowed receipts A "revenue deficit" occurs when a government's total revenue receipts are less than its total revenue expenditures.In other words, the government is spending more on its day-to-day operational activities, subsidies, and interest payments than it is generating from sources like taxes, fees, and non- borrowed receipts.Hence, the correct answer is "revenue deficit".

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