If the government revenue expenditure exceeds revenue receipt, it is called:

Question

YESPYQ · Accepted Answer

Correct answer: a) revenue deficit. If 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".

If the government revenue expenditure exceeds revenue receipt, it is called:

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