Freebies, however, one may define them, are a part of the revenue expenditure. A key provision of the FRBM Act is that the revenue deficit must be eliminated, which means no borrowed money can be used for revenue expenditure, including freebies. In 2010–11, the Union government’s revenue deficit was 3.24%, while the state governments had a revenue surplus of -0.4%. A key provision of the FRBM Act is that the revenue deficit must be eliminated, which means no borrowed money can be used for revenue expenditure, including freebies. In 2010–11, the Union government’s revenue deficit was 3.24%, while the state governments had a revenue surplus of -0.4%.

Source: Indian Express September 20, 2022 07:36 UTC