The government budget has a revenue deficit. This gets financed by:
A. Borrowing B. Disinvestment
C. Tax revenue D. Indirect taxes

A and D

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C and D

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A and B

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C and B

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Solution

The correct option is C A and B
Revenue deficit refers to a situation when revenue expenditure exceeds the revenue receipts. This get financed by mainly two components- borrowings and disinvestment( that is, sale of public properties to private organization )

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Similar questions

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

The government budget has a revenue deficit. How it can be financed?

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