Which of the following scenarios correctly describes a 'Revenue Deficit' in the Union Budget?

Revenue Deficit = Revenue Expenditure – Revenue Receipts. Revenue receipts include tax revenue and non-tax revenue; revenue expenditure includes salaries, subsidies, interest payments, pensions, and other administrative expenses. A revenue deficit indicates that the government's regular income is insufficient to cover its routine expenses it must borrow to fund operations, not just capital investments. A revenue deficit is considered unfavourable because borrowing for consumption rather than investment adds to debt without creating productive assets. Option A describes the Fiscal Deficit; Option E describes the Primary Deficit (fiscal deficit minus interest payments). Budget 2026-27 targets a fiscal deficit of 4.3% of GDP.