what are the implications of revenue deficit

Revenue deficit is the excess of revenue expenditure over revenue receipts


1)A cut in expenditure.

2) Borrowing .

3) Selling your assets(house etc).

1)The government is compelled to cut its revenue expenditure even when it causes a loss to social welfare.

2)The government is compelled to borrow ,even to quech its consumption need.

3)The government is compellled to undertake disinvestment- selling its ownership of public enterprises.

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