Which of the following is NOT a component of the revenue deficit?

Explanation

The correct answer is (D) Capital expenditure Explanation: • Revenue Deficit occurs when the government's total revenue expenditure Copyright © 2026exceeds Adda247its total revenue receipts. • Capital expenditure relates to the creation of assets or reduction of liabilities and is part of the Capital Budget, not the Revenue Budget. Information Booster: • Revenue Expenditure includes salaries, pensions, and interest payments. • Revenue Receipts include tax revenue and non-tax revenue (like dividends and interest). Additional Knowledge: • Fiscal Deficit: The difference between total expenditure and total receipts (excluding borrowings).