📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.

    Practice Next
    More Economic and Social Issues ESI Questions

    Relevant for Exams:

    ask-question