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Consider the following statements :
1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.
2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.
Which of the above statements is/are correct ?
- a)Neither 1 nor 2
- b)2 only
- c)Both 1 and 2
- d)1 only
Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements :1. Effective revenue deficit refers...
The Rangarajan Committee on Public Expenditure has suggested the concept of an effective revenue deficit. It aims to deduct the money used from borrowing to finance capital expenditure. Effective Revenue Deficit is the difference between Revenue deficits and Grants for the creation of capital assets. Effective Revenue Deficit = Revenue Deficits - Grants for the creation of capital Assets. All grants given to the State Governments/Union Territories and other parties are also treated as revenue expenditure, even though some of the grants may be used to create capital assets. Thus, the revenue expenditure which results in the creation of capital assets is deducted from the total revenue deficit to arrive at the effective revenue deficit.So, Statement 1 is not correct.
Revenue deficit is the difference between the total revenue receipts (from tax and non-tax sources) and the total revenue expenditure during a fiscal year. It shows the amount by which the Government's revenue receipts fell short of the total revenue expenditure. Revenue deficit = Total revenue expenditure - Total revenue receipts. A revenue deficit indicates an increase in liabilities of the Central Government without an increase in the assets of that Government. Revenue deficit – Effective Revenue deficit = Grants for the creation of Capital Assets. Thus, The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a low amount of grants is allocated for asset creation. So, Statement 2 is not correct.
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Consider the following statements :1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect answer is option 'D'. Can you explain this answer?
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Consider the following statements :1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect 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. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect 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. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements :1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect 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. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect 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. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements :1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.2. The difference between Revenue Deficit and Effective Revenue Deficit being very less indicates that a high amount of grants is allocated for asset creation.Which of the above statements is/are correct ?a)Neither 1 nor 2b)2 onlyc)Both 1 and 2d)1 onlyCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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