what is current and revenue deficit?plz explain with example and video as in our book T.R. jain only word names is given.

Current account deficit is the excess of total imports of goods, services and transfers over total exports of goods, services and transfers. This situation makes a country debtor to the rest of the world.

Revenue deficit refers to the excess of revenue expenditure over revenue receipts. That is,

Revenue Deficit = Revenue Expenditure – Revenue Receipts

Revenue expenditure includes expenditure on salaries, pensions, subsidies, interest payments, etc. And revenue receipts include tax receipts and non-tax receipts that neither creates any liability nor creates any reduction in the assets of the government.

For example, If revenue expenditure of government in a fiscal year is 26 crore rupees and its revenue receipts amount to 18 crore rupees, then in this case revenue deficit of government would be 26-18 = 8 crore rupees

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