| 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. |
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