Question

Which of the following constitute/s fiscal consolidation?

Select the correct code:

• A. 1, 2, 3, 4, 6
• B. 2, 3, 4, 5, 7
• C. 1, 2, 3, 4, 5
• D. 1, 2, 3, 4, 5, 6, 7

Answer 1

The correct option is D

1, 2, 3, 4, 5, 6, 7

Kelkar suggested reducing the outgoing money and increasing the incoming money. That means

1. Cut down subsidies.
2. Stop leakages in subsidies.
3. Reform the tax structure (implement GST).
4. Improve the performance of PSUs.
5. Recover blackmoney
6. stop ministers from using Business class airtickets and other wasteful Government expenditures. (= take austerity measures)

+ Policy reforms such as FDI (to create environment conductive for economy = that will automatically increase productivity and tax collection.