SSC CGL 2023 PYQ — Question 40

The correct answer is option 1 i.e. revenue deficit.

If government revenue expenditure exceeds revenue receipts, it is called a revenue deficit. This situation occurs when the government’s spending on current expenses surpasses its income from tax and non-tax sources. A revenue deficit indicates that the government needs to borrow or use other resources to cover the shortfall between its revenue and expenditure. Addressing a revenue deficit is crucial for maintaining fiscal health and achieving balanced budgets in the long term.