Question

what is revenue deficit in a government budjet.explain its implications of revenue budget.​

Answer 1

hi mate ...☺️☺️

here is your answer ...,☺️☺️

@ REVENUE DEFICIT

Revenue deficit is the excess of revenue expenditure over revenue receipts .

Revenue deficit = Revenue expenditure - revenue receipts

IMPLICATIONS :-

# because of revenue deficit government may have cut its expenditure on several welfare programmes in the country .this leads to loss of social welfare.

# the government may have to raise fund through borrowings. this raises liabilities of the government and lowers its credit worthines .

# the government may be compelled for disinvestment selling its ownership of public Enterprises. the ownership of public Enterprises may be lost to foreign companies.

@ kushpreetsaini30739☺️☺️

Answer 2

Answer:

Revenue deficit is a situation where revenue expenditure is more than revenue deficit

revenue deficit =

Revenue expenditure - revenue receipts