Revenue Deficit is equal to _____.

Revenue Deficit is equal to

Revenue deficit = Revenue expenditure – Revenue Receipts

Explanation

The revenue deficit mentions to the surplus of government’s revenue expenditure over the revenue receipts. This deficit only incorporates current income and current expenses. A high degree of deficit symbolizes that the government should reduce its expends. The government may raise its revenue receipts by rising income tax. Disinvestment is selling off assets is another corrective measure to minimize revenue deficit.

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