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      Question

      Which of the following would increase the fiscal

      deficit, assuming other things unchanged?
      A Increase in disinvestment receipts Correct Answer Incorrect Answer
      B Increase in GST collections Correct Answer Incorrect Answer
      C Reduction in major subsidies Correct Answer Incorrect Answer
      D Increase in interest-free loans to states Correct Answer Incorrect Answer
      E Increase in corporate tax receipts Correct Answer Incorrect Answer

      Solution

      Interest-free loans constitute capital expenditure, thereby widening fiscal deficit unless matched by higher receipts.

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