A budget deficit occurs when a government's total expenditures exceed its total revenues. To reduce the deficit, the government must either increase revenue or decrease expenditure.
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.
Asked in UPSC IAS 2015 · UPSC IAS 2016 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
More Economic Development questions
- Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct ?
- Which of the following statements about revenue and primary deficit is/are correct? 1. Revenue deficit refers to the excess of revenue expenditure over revenue receipts. 2. Primary deficit is measured as fiscal deficit less interest payments. Select the correct answer using the code given below.
- The fiscal deficit is the difference between
- The gross fiscal deficit in 2014-15 as per cent to G.D.P. of India?
- Fiscal Deficit is
- If interest payment is added to primary deficit, it is equivalent to
- What is the effect of deficit financing on economy?
- If interest payments arc subtracted from gross fiscal deficit, the remainder will be