Revenue receipts of the government for a fiscal year are Rs. 10 lakh crore and revenue expenditure is Rs. 12 lakh crore. What is the revenue deficit for that year?
Answer
Rs. 2 lakh crore
The correct answer is Rs. 2 lakh crore — Thus the revenue deficit is Rs. 2 lakh crore.
Step-by-step solution
- Revenue deficit is calculated as expenditure minus receipts.
- Subtract the receipts (Rs. 10 lakh crore) from expenditure (Rs. 12 lakh crore).
- 12 lakh crore – 10 lakh crore = 2 lakh crore.
- Thus the revenue deficit is Rs. 2 lakh crore.
Common mistake: Confusing deficit with surplus or adding receipts to expenditure.
Concept tested: Revenue deficit calculation
Published · How this solution was prepared and checked
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