Which of the following is/are correct? 1. The estimated fiscal deficit for Haryana as per Budget 2026-27 is 2.6%. 2. In Haryana, effective revenue deficit has increased in past three years as the grants for creation of capital assets have gone down. Select the answer using the codes given below:

Fiscal deficit

• Fiscal deficit is the excess of the total expenditure of the government over its total receipts, excluding borrowings, and it indicates the total borrowing requirement of the State.
• The fiscal deficit budgeted by Haryana for the year 2026-27 is not 2.6 per cent of the Gross State Domestic Product. The State has budgeted a fiscal deficit close to the limit of about 3 per cent of GSDP permitted under its Fiscal Responsibility and Budget Management Act. Hence, statement 1 is incorrect.

Effective revenue deficit

• Effective revenue deficit is obtained by deducting the grants-in-aid given for the creation of capital assets from the revenue deficit, so that only that part of the revenue deficit which does not result in asset creation is measured.
• The grants received by Haryana for the creation of capital assets have not declined in the manner stated and the effective revenue deficit has not shown a continuous increase over the past three years on this account. Hence, statement 2 is incorrect.
• Therefore, neither statement 1 nor statement 2 is correct.