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    Question

    Effective revenue deficit

    is:
    A The difference between total revenue and total expenditure. Correct Answer Incorrect Answer
    B The difference between revenue expenditure and revenue receipts. Correct Answer Incorrect Answer
    C The difference between revenue deficit and grants for the creation of capital assets. Correct Answer Incorrect Answer
    D The difference between fiscal deficit and interest payments. Correct Answer Incorrect Answer

    Solution

    Effective revenue deficit is defined as the difference between the revenue deficit and grants for the creation of capital assets. This measure aims to present a more realistic picture of the deficit, as grants for capital asset creation are considered productive expenditure.

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