Q.7 Which deficit equals encase of total revenue expenditure
Over total revenue receipts.
Answers
Answer:
The excess of total revenue expenditure over total revenue receipts refers to Revenue Deficit
Explanation:
It mainly signifies that government spends more on normal functioning of various sectors and departments , than it collects.
Which implies that government is incompetent to meet its day to day or regular expenditures.
The situation of revenue deficit , if not taken control of, may lead to fiscal deficit or add on to the borrowings from the foreign sectors.
Answer:
Explanation:
Different types of deficit are varied based on the budget and depends on the types of receipts as well as expenditure.
There are 3 concepts of deficit, namely Revenue deficit, Fiscal deficit and Primary deficit. Excess of total revenue expenditure would be total revenue receipts with the Revenue Deficit and this mainly signifies the spending on the normal functioning.