Which of the following is the correct definition of  ‘Effective Revenue Deficit’?

 

Answer: [A] difference between revenue deficit and grants for creation of capital assets

Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. According to the Interim Budget 2014-15 documents, the Effective revenue deficit is 2.2 % of the GDP and the government projects it to be 1.8% of GDP in fiscal year 2014-15.

This question is a part of GKToday's Integrated IAS General Studies Module