Question

The government of a developing country is facing a high fiscal deficit due to increased spending on social welfare programs and infrastructure projects. The government is considering implementing fiscal consolidation measures to reduce the deficit. Which of the following fiscal consolidation measures is likely to have the most immediate impact on reducing the fiscal deficit?

A Increasing taxes on luxury goods.
B Reducing subsidies on essential commodities.
C Implementing a long-term infrastructure development plan.
D Introducing a new social welfare program.
E Increasing government spending on education.
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