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.
Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue…
CUET UG 2022 — Economics Macro
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 ?
Verified 13 Jul 2026.
Options
- A
To increase grants given to the State Government
- B
To increase the subsidy
- C
To increase taxation
- D
To increase government administrative expenses
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