Lesson eLearning

Revenue receipts of the government for a fiscal year are Rs. 12 lakh crore and revenue expenditure is Rs. 14 lakh crore. What is the revenue deficit for that year?

easy MCQ 1 mark Class 12 · Economics · Government Budget and the Economy
  1. Rs. 1 lakh crore
  2. Rs. 2 lakh crore
  3. Rs. 3 lakh crore
  4. Rs. 4 lakh crore
Answer
Rs. 2 lakh crore

The correct answer is Rs. 2 lakh crore — State the revenue deficit as Rs. 2 lakh crore.

Step-by-step solution

  1. Identify the formula for revenue deficit: Revenue Deficit = Revenue Expenditure - Revenue Receipts.
  2. Substitute the given values: Revenue Deficit = Rs. 14 lakh crore - Rs. 12 lakh crore.
  3. Perform the subtraction: Rs. 14 lakh crore - Rs. 12 lakh crore = Rs. 2 lakh crore.
  4. State the revenue deficit as Rs. 2 lakh crore.
Common mistake: Confusing revenue deficit with fiscal deficit or subtracting the wrong way.

Concept tested: Revenue deficit calculation

Published · How this solution was prepared and checked

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