GyanGramThere has been a persistent deficit budget year after year. Which of the following actions can be taken by th…
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There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
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• Correct Answer: A
• Reducing revenue expenditure and rationalizing subsidies directly cut government spending, lowering fiscal deficit.
• New welfare schemes expand expenditure; industry expansion requires capital outlay, worsening deficit.
• B, C, D are wrong because they include expansionary or deficit-widening measures.
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