Question

the government budget has a revenue deficit . This gets financed by :
(a) indirect tax and borrowing
(b) tax revenue and borrowing
(c) borrowing and disinvestment
(D) tax revenue and indirect tax

Answer 1

Dear Student,
Revenue deficit means the shortfall between total revenue received and total revenue expenditure.Revenue deficit include current incomes and expenditure.It indicates that the government should reduce it's expenditures.The government may increase its revenue receipts by increasing tax revenue and borrowings.

Regards,