Attempt this previous-year question. The correct option stays hidden until you choose.
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.
Pick an option to check yourself.
• Correct Answer: C
• Reducing revenue expenditure and rationalizing subsidies directly lower government spending, narrowing the fiscal deficit.
• New welfare schemes increase expenditure; reducing import duty lowers revenue, both widening the deficit.
• B, D are wrong as they include deficit-widening measures.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram