There has been a persistent deficit budget year after year. Which action/actions of the 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
Select the correct answer using the code given below.
Answer:
(c)
Core Books/NCERT
A budget deficit is an indicator of financial health in which expenditures exceeds revenue. The term is most commonly used to refer to Government spending. Reducing revenue expenditure and rationalizing subsidies will reduce the expenditure of the Government Whereas, introducing new welfare schemes will increase Government expenditure and reducing import duty will reduce government revenueTikdam: 2 will increase exepnditure where as 1 and 3 will reduce the expenditure thus defict