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Zorluk: KolayFiscal Policy, Union/State Budgeting, Public Finance, and Taxation Structure

During a financial year, a state government records a total Revenue Expenditure of ₹85,000 crore and total Revenue Receipts of ₹70,000 crore. If grants-in-aid released by the state for the creation of capital assets total ₹5,000 crore, what is the Effective Revenue Deficit of the state in ₹ crore?

Cevap: 10000 crore

Cevap

The Effective Revenue Deficit of the state is ₹10,000 crore.
The Effective Revenue Deficit measures the difference between Revenue Deficit and grants-in-aid used for generating capital assets. First, find the Revenue Deficit (85,000−70,000=15,00085,000 - 70,000 = 15,000 crore). Subtracting the grants for capital assets (15,000−5,00015,000 - 5,000) yields an Effective Revenue Deficit of ₹10,000 crore.

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1
Calculate the standard Revenue Deficit.
Revenue Deficit = ₹15,000 crore.
Revenue Deficit represents the excess of total revenue expenditure over total revenue receipts: 85,000−70,000=15,00085,000 - 70,000 = 15,000.
2
Deduct the grants-in-aid earmarked for the creation of capital assets from the Revenue Deficit.
Effective Revenue Deficit = ₹10,000 crore.
Effective Revenue Deficit excludes grants given for capital asset formation as they lead to asset creation rather than pure consumption: 15,000−5,000=10,00015,000 - 5,000 = 10,000.

Anahtar Kavram

Effective Revenue Deficit
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Konular

Fiscal Policy, Union/State Budgeting, Public Finance, and Taxation Structure