Question

The difference between revenue deficit and grants for creation of capital assets is called _____.

• A. budget deficit
• B. effective revenue deficit
• C. primary deficit
• D. fiscal deficit

Answer 1

The correct option is B effective revenue deficit

Effective Revenue Deficit is the difference between revenue deficit and grants for the creation of capital assets. In other words, the Effective Revenue Deficit excludes those revenue expenditures which were done in the form of grants for the creation of capital assets.
It was introduced in the Budget for the first time in 2011-2012