Q. Effective Revenue Deficit in India refers to:

[A] Revenue Deficit plus grants for capital asset creation

[B] Revenue Deficit minus grants-in-aid for creation of capital assets

[C] Fiscal Deficit excluding interest payments

[D] Primary Deficit adjusted for disinvestment proceeds

Answer: B
Notes:

Explanation: It refines the Revenue Deficit by subtracting productive grants (for assets like infrastructure), focusing on truly unproductive revenue shortfalls.

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