Question

    Effective Revenue Deficit is

    A Revenue Deficit minus grants for creation of assets Correct Answer Incorrect Answer
    B Revenue Deficit minus Interest Payment Correct Answer Incorrect Answer
    C Revenue Deficit minus Non-Debt Capital Receipts Correct Answer Incorrect Answer
    D Fiscal Deficit minus Non-Debt Revenue Receipts Correct Answer Incorrect Answer

    Solution

    Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. ... The concept has been introduced to ascertain the actual deficit in the revenue account after adjusting for expenditure of capital nature.

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