SSC Economics Sample Paper NCERT Sample Paper-4

  • question_answer
    Which of the following are measures to reduce fiscal deficit?
    1. Cutting subsidies
    2. Decrease disinvestment proceeds
    3. Cut plan expenditure
    4. Monetary easing
    Choose the correct options:

    A)  1, 2                 

    B)  1, 2, 3

    C)  1, 2, 3, 4         

    D)  None of these

    Correct Answer: D

    Solution :

    [d] Options 2, 4 actually increase the fiscal deficit. Kelkar committee report has told about 4 ways to cut fiscal deficit namely,
    1. Tax measures and better administration.
    2. Increase disinvestment proceeds
    3. Cutting subsidies
    4. Right sizing plan expenditure, (cutting the plan expenditure would eventually prove a negative influence in the long run, the correct word is right sizing as in rightsizing both increase and decrease can happen.

You need to login to perform this action.
You will be redirected in 3 sec spinner