Attempt this previous-year question. The correct option stays hidden until you choose.
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
Select the correct answer using the code given below.
Pick an option to check yourself.
• 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.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram