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    Question

    The concept which tries to ascertain the actual deficit in the revenue account after adjusting for expenditure of capital nature is termed as;

    A revenue deficit Correct Answer Incorrect Answer
    B effective revenue deficit Correct Answer Incorrect Answer
    C fiscal deficit Correct Answer Incorrect Answer
    D primary deficit Correct Answer Incorrect Answer
    E None of the these Correct Answer Incorrect Answer

    Solution

    Effective Revenue Deficit is basically revenue deficit excluding expenditure on capital generation form grants from the Centre to the states. It signifies the amount of capital receipts that are being used for actual consumption expenditure of the Government. It is a new term introduced in the Union Budget 2011-12. It has now become a new fiscal parameter.

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