Question

There has been a persistent deficit budget year after year. Which action/actions of following can be taken by the Government to reduce the deficit?

  1. Reducing revenue expenditure

  2. Introducing new welfare schemes

  3. Rationalizing subsidies

  4. Reducing import duty

A I, II and IV only Correct Answer Incorrect Answer
B II and III only Correct Answer Incorrect Answer
C I and III only Correct Answer Incorrect Answer
D I, III and IV only Correct Answer Incorrect Answer

Solution

“Introducing new schemes” will increase Burden on the government.

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