Q. 7

How can revenue d

Answer :

● Revenue deficit is the excess of total revenue expenditure of the government over its total revenue receipt.

● Revenue deficit = expenditure minus total revenue receipt.

● It indicates the dissaving of the government because the government has to make up for the uncovered gap.

● It is done by using the capital receipts either by borrowing or through selling its assets.

● The government usually uses its capital receipt to meet the consumption expenditure which leads to an inflationary situation in the economy.

● The two measures to reduce revenue deficit are:

i. The government should reduce all its unproductive expenditure.

ii. The government should increase its revenue from various tax and nontax revenue sources.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

If real income toEconomics - Board Papers

What are capital Economics - Board Papers

What are revenue Economics - Board Papers