Macro

Government Budget

Medium

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget.

Which measure would you suggest to control the rising Revenue deficit of the government ?

To increase grants given to the State Government

To increase the subsidy

To increase taxation

To increase government administrative expenses

✅ Correct Option: 3

Revenue deficit equals revenue expenditure minus revenue receipts. To reduce it, one should either cut revenue expenditure or raise revenue receipts. Increasing taxation boosts revenue receipts. Increasing grants, subsidies, or administrative expenses would raise revenue expenditure and worsen the deficit.

2022: 19 July Shift 2

Which of the following deficit shows excess of government expenditure over receipts other than burden of interest payments ?

2023: 30 May Shift 1

Revenue Deficit is

2026: 20 May Shift 1

From the following data about the budget, determine the primary deficit.

Items	Amount (In Rs. crore)
Revenue expenditure	150
Capital receipts (excluding borrowing)	105
Interest payments	30
Revenue receipts	120
Capital expenditure	170

2025: 16 May Shift 1

Which of the following measures can be taken under fiscal policy to solve the problem of deficient demand in the economy?

2023: 30 May Shift 1

Disinvestment of Public Sector Undertakings, is a part of __________.

2022: 30 Aug Shift 2

Which of the following statements is true ?

(A) Fiscal deficit is the difference between the government's budgetary expenditure and budgetary receipts excluding borrowings.

(B) Primary deficit is the difference between total receipts and interest payments.

(D) Primary deficit equals revenue deficit less interest payments.

(E) Revenue deficit refers to excess of government's revenue expenditure over its revenue receipts.

Choose the correct answer from the options given below :

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget. Which measure would you suggest to control the rising Revenue deficit of the government ?

Solution

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CUET Economics Past Year Questions (Topic-Wise)

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget.

Which measure would you suggest to control the rising Revenue deficit of the government ?