WBCS.LIVE practice question

What is a revenue deficit in the government budget?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. The excess of expenditure over revenue, excluding interest payments on debt.
  2. The excess of revenue over expenditure, excluding interest payments on debt.
  3. The excess of revenue over expenditure, including interest payments on debt.
  4. The excess of expenditure over revenue, including interest payments on debt.

Correct answer and explanation

Correct answer: The excess of expenditure over revenue, including interest payments on debt.