Question

The difference between revenue expenditure and revenue receipts is known as the:

• A. Capital deficit
• B. Revenue deficit
• C. Fiscal deficit
• D. Primary deficit

Answer 1

Answer:

B. Revenue deficit

• The revenue deficit occurs when the government's recurring (revenue) expenditure exceeds its recurring (revenue) income.

• It indicates that the government is spending more on day-to-day operations than it's earning from its normal sources.