Question

The excess of government's revenue expenditure over revenue receipts constitutes ______.

• A. fiscal deficit
• B. primary deficit
• C. budget deficit
• D. revenue deficit

Answer 1

The correct option is D revenue deficit

1. Revenue deficit in excess of total revenue expenditure of the government over its total revenue receipts.
2. It is related to only revenue expenditure and revenue receipts of the government.
3. Alternatively, the shortfall of total revenue receipts compared to total revenue expenditure is defined as revenue deficit.