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      Question

      The Effective Revenue Deficit excludes which of the

      following?
      A Capital Receipts Correct Answer Incorrect Answer
      B Interest Payments Correct Answer Incorrect Answer
      C Grants for creation of capital assets Correct Answer Incorrect Answer
      D Revenue Expenditure Correct Answer Incorrect Answer
      E Disinvestment Proceeds Correct Answer Incorrect Answer

      Solution

      Introduced in 2011–12, the Effective Revenue Deficit = Revenue Deficit – Grants for capital creation. It refines the true measure of current expenditure.

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