Explanation:

the Indian Government needs to borrow in order to finance its expenses which do not create capital assets 

• Revenue Deficit: - It refers to the excess of government’s revenue expenditure over revenue receipts .
• Revenue Deficit = Revenue expenditure – Revenue receipts.
• Revenue deficit in India signifies that the government's regular income (like taxes and non-debt capital receipts) is insufficient to cover its regular expenses, excluding debt servicing.
• In simpler terms, it means the government is spending more money on its day-to-day activities than it is earning through its regular sources of income.
• This deficit needs to be financed through borrowing or other means, which can lead to an increase in debt burden.
• The revenue deficit includes only such transactions that affect the current income and expenditure of the govt.