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प्रश्न
Explain 'Revenue Deficit in a Government budget? What does it indicate?
What is revenue deficit in government budget?
Explain the meaning of Revenue deficit
What is revenue deficit?
Define revenue deficit
उत्तर
Revenue deficit means the excess of revenue expenditure of the government over its revenue receipts. Revenue deficit = Revenue expenditure − Revenue receipts
Revenue deficit is indicated to the government as follows:
i. Regular receipts of the government are not enough to meet regular expenditures.
ii. The government is using up savings of other sectors of the economy to meet its consumption expenditure.
iii. This gives a signal to either reduce its expenditure or increase its revenue. Curtail expenditure by taking steps to avoid unproductive expenses and increase revenue from various sources of tax and non-tax revenues
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संबंधित प्रश्न
Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100 (a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model. (b) If government expenditure increases by 30, what is the impact on equilibrium income? (c) If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?
Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.
We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Explain the relation between government deficit and government debt.
Does public debt impose a burden? Explain.
Are fiscal deficits inflationary?
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is the formula for revenue deficit?
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Fiscal Deficit = Total Budget Expenditure - Total Budget Receipts (Net of borrowing)
Statement 2: Primary Deficit = Fiscal Deficit + Interest Payments.
A fiscal deficit is equal to borrowings. It is ______
The difference between fiscal deficit and interest payment is known as ______
______ are the transactions between the residents of two countries that take place due to consideration of profit.
Identify the correctly matched pair of the items in Column A to those in Column B:
| Column A | Column B | ||
| 1 | Fiscal Deficit | (a) | Other than interest payments |
| 2 | Primary Deficit | (b) | Borrowings less interest payments |
| 3 | Revenue Deficit | (c) | Borrowings |
| 4 | Tax Deficit | (d) | Borrowings in government budget |
Which of the following statements is true?
Primary deficit is borrowing requirements of government for making:
