In a deficit budget ______.

receipts > expenditure

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expenditure > receipts

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expenditure

=

receipts

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none of above

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Solution

The correct option is A expenditure > receipts
When expenditure exceeds revenues it is called as budget deficit. It explains the financial health of the economy. The government uses this term in reference to its spending rather than business or individuals. Hence, in a deficit budget, expenditure > receipts.

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Similar questions

Find budget deficit from the following data:

Items (Rs in crore)

(i) Revenue receipts 40,000

(ii) Revenue expenditure 30,000

(iii) Capital receipts 30,000

(iv) Capital expenditure 50,000

List-I (Type of budget deficit)	List-II (Measurement of deficit)
A. Revenue Deficit	$1$ . Gap between total expenditure and total receipts
B. Fiscal Deficit	$2$ . Excess of revenue expenditure over revenue receipts
C. Primary Deficit	$3$ . Fiscal deficit less interest payments
D. Budgetary Deficit	$4$ . Difference between revenue receipts plus certain non-debt capital receipts and the total expenditure including loans, net of repayments

Total expenditure of a government budget is Rs 75,000 crore and total receipts are Rs 45,000 crore. How much is the budget deficit?

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