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Question

In a government budget, revenue deficit is Rs.40 crores. If revenue receipts are Rs.90 crores and capital receipts Rs.60 crores, then how much is the revenue expenditure.

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Solution

Revenue deficit is the excess of revenue expenditure over revenue receipts.
Revenue deficit = revenue expenditure - revenue receipts
Therefore, revenue expenditure = revenue deficit+ revenue receipt
= 40 + 90 = 130 crores.

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