ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Revenue expenditure is the money spent on goods and services used to generate revenue. This type of expenditure is calculated by subtracting the cost of goods sold from the total income and then adding back in the price of goods sold.

Detailed explanation-2: -The excess of revenue expenditures over revenue receipts is called revenue deficit.

Detailed explanation-3: -The sum of all receipts from the taxes and all other duties under the government are referred to as tax revenue. They are either from direct taxes or indirect taxes. It is the main source of regular receipts of the government and is categorized into Direct Taxes and Indirect Taxes.

Detailed explanation-4: -The excess of Government’s revenue expenditure over revenue receipts constitutes revenue deficit of Government.