ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In order to bring down revenue deficit, the government can either raise revenue receipts or reduce revenue expenditures.

Detailed explanation-2: -Countries counter budget deficits by promoting economic growth through fiscal policies, such as reducing government spending and increasing taxes.

Detailed explanation-3: -In the budget, if the government’s expenditure is more than its revenue receipts and non-debt capital receipts, it is called ‘fiscal deficit’.

Detailed explanation-4: -Revenue Deficit A high value of deficit indicates that the government should cut down on its expenditures. The government may increase its revenue receipts by increasing tax income. Disinvestment which means selling off assets is another remedial measure to reduce revenue deficit.