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Question

Revenue Deficit is equal to ___________________.

A
Total Expenditure - Revenue Receipts
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B
Revenue Expenditure - Revenue Receipts
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C
Fiscal Deficit - Interest Payments
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D
Fiscal Deficit - Revenue Expenditure
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Solution

The correct option is B Revenue Expenditure - Revenue Receipts
Revenue deficit is related to revenue receipts and revenue expenditure of the government. Revenue deficit is the excess of revenue expenditure over revenue receipts. It does not include items of capital expenditure and capital receipts.

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