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    Question

    Consider the following statements about fiscal

    management. 1. The Union government will give 50 year interest free loans to states which are to be spent on capital expenditure within 2023-24. 2. Fiscal Deficit of 3.5% of GSDP is allowed for states (in which 0.5% is tied to power sector reforms). 3. Targeted fiscal deficit to be below 4.5% by 2024-25. Which of the above statements are incorrect as per budget 2023-24?
    A 1 and 3 Correct Answer Incorrect Answer
    B 1 and 2 Correct Answer Incorrect Answer
    C 2 and 3 Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    Targeted Fiscal Deficit Below 4.5% by 2025-26.

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