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    Question

    States are allowed to have a deficit of how much of

    their Gross State Domestic Product (GSDP), with a specific portion designated for power sector reforms?
    A 2.5% of GSDP, 0.25% for power sector reforms Correct Answer Incorrect Answer
    B 3% of GSDP, 0.25% for power sector reforms Correct Answer Incorrect Answer
    C 3.5% of GSDP, 0.5% for power sector reforms Correct Answer Incorrect Answer
    D 4% of GSDP, 0.5% for power sector reforms Correct Answer Incorrect Answer
    E 4.5% of GSDP, 0.75% for power sector reforms Correct Answer Incorrect Answer

    Solution

    States are allowed to have a deficit of 3.5% of their Gross State Domestic Product (GSDP), with 0.5% of this amount specifically designated for power sector reforms. This policy encourages states to invest in improving their power sectors while maintaining fiscal discipline.

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