Q.In a particular year, a state government's Revenue Receipts are ₹800 crore (Tax Revenue ₹600 crore + Non-Tax Revenue ₹200 crore) and its Revenue Expenditure is ₹950 crore. Calculate the Revenue Deficit.

Revenue Deficit is simply the excess of revenue expenditure over revenue receipts, so subtracting one total from the other gives the answer directly.

Step 1 — Identify the totals. Revenue Receipts = ₹800 crore (already given as a total of Tax Revenue ₹600 crore + Non-Tax Revenue ₹200 crore = ₹800 crore, confirming the given figure). Revenue Expenditure = ₹950 crore.

Step 2 — Apply the formula.

Step 3 — Dual-solve cross-check. Recomputing from the components independently: Revenue Receipts = 600 + 200 = 800 (matches). Revenue Deficit = 950 − 800 = 150 (matches the direct computation). Both routes agree.

Interpretation. A Revenue Deficit of ₹150 crore means the government's routine, day-to-day expenditure exceeds its routine current income by that amount — it must borrow (or draw down assets) by ₹150 crore just to meet ordinary running costs, none of which creates any productive asset in return.

Cross-check Revenue Receipts by adding its own components (Tax + Non-Tax Revenue) before subtracting, to confirm the given total is internally consistent.

A common slip is subtracting Revenue Receipts from Revenue Expenditure in the wrong order (giving a negative number treated as a 'surplus' when the question intends a deficit) — always confirm which total is larger before stating the sign, and remember Revenue Deficit is conventionally reported as a positive shortfall when expenditure exceeds receipts.