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Consider the following statements.
1. Revenue deficit is the difference between revenue receipts and revenue expenditures.
2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.
Which of these statements is/are incorrect?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. 1. Revenue deficit is the differen...
Revenue deficit is the difference between revenue expenditure and revenue receipts.... why it's incorrect?
Community Answer
Consider the following statements. 1. Revenue deficit is the differen...
Revenue deficit is the difference between revenue receipts and revenue expenditures. It reflects the extent to which the government is relying on borrowing to meet its day-to-day expenses.
Effective revenue deficit, on the other hand, is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets. It provides a more accurate picture of the government's revenue position by excluding capital expenditure.
Now let's evaluate the given statements:
1. Revenue deficit is the difference between revenue receipts and revenue expenditures.
This statement is absolutely correct. Revenue deficit is calculated by subtracting the total revenue expenditure from the total revenue receipts of the government.
2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.
This statement is also correct. Effective revenue deficit is calculated by subtracting the revenue expenditure on grants for creation of capital assets from the revenue deficit. By excluding capital expenditure, it provides a clearer picture of the government's revenue position.
Therefore, both statements are correct, and the correct answer should have been option 'C' - Both 1 and 2.
However, the given answer is option 'D' - Neither 1 nor 2, which is incorrect. The explanation provided for this answer is not accurate as both statements are indeed correct. It is important to note that the accuracy of the answer is crucial in the UPSC exam, so it is important to provide the correct information.
Effective revenue deficit, on the other hand, is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets. It provides a more accurate picture of the government's revenue position by excluding capital expenditure.
Now let's evaluate the given statements:
1. Revenue deficit is the difference between revenue receipts and revenue expenditures.
This statement is absolutely correct. Revenue deficit is calculated by subtracting the total revenue expenditure from the total revenue receipts of the government.
2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.
This statement is also correct. Effective revenue deficit is calculated by subtracting the revenue expenditure on grants for creation of capital assets from the revenue deficit. By excluding capital expenditure, it provides a clearer picture of the government's revenue position.
Therefore, both statements are correct, and the correct answer should have been option 'C' - Both 1 and 2.
However, the given answer is option 'D' - Neither 1 nor 2, which is incorrect. The explanation provided for this answer is not accurate as both statements are indeed correct. It is important to note that the accuracy of the answer is crucial in the UPSC exam, so it is important to provide the correct information.
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Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
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Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements. 1. Revenue deficit is the difference between revenue receipts and revenue expenditures.2. Effective revenue deficit is the revenue deficit excluding that revenue expenditure of the Government of India which was done in the form of grants for creation of capital assets.Which of these statements is/are incorrect?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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