Which of the following would be advisable to curb the revenue deficit ? 1. Cutting expenditures on subsidy 2. Cutting social expenditures 3. Imposing import controls Select the correct answer using the code given below :

Revenue deficit is the excess of total revenue expenditure of the government over its total revenue receipts. To reduce the revenue deficit, the government must either increase its revenue receipts (e.g., through taxes) or decrease its revenue expenditure. Cutting expenditures on subsidies (1) and cutting social expenditures (2) are both measures that reduce government revenue expenditure, and are therefore advisable steps to curb the revenue deficit.