Effective Revenue Deficit was introduced in the Union Budget of :

Explanation

Effective Revenue Deficit is the difference between the revenue deficit and grants given for the creation of capital assets. The concept of effective revenue deficit was introduced from the Union Budget of the financial year 2011-12. The main objective of bringing this concept was to highlight the structural imbalances in the revenue deficit. It was included under the Fiscal Responsibility and Budget Management Act, 2003 from the Union Budget of the financial year 2012-13. Effective Revenue Deficit = Revenue Deficit - Grants for creation of capital assets. As per the Union Budget 2025-26, in the year 2025-26 (Budget Estimates), the effective revenue deficit is estimated at 0.3 percent of GDP, while for the year 2024-25 (Revised Estimates) and the year 2024-25 (Budget Estimates), it is estimated at 1.0 percent and 0.6 percent respectively. For the year 2023-24, it is recorded at 1.6 percent.