Question

Which of these measures will help reduce fiscal deficit?

• A. Reducing subsidies
• B. Downsizing of Government
• C. Improving tax administration
• D. all the three

Answer 1

Answer: (D)

all the three

Increased emphasis on tax-based revenues and appropriate measures to reduce tax evasion. Reduction in subsidies by the government will also help reduce the deficit. Trying and avoiding unplanned expenditures, improving taxation system and borrowing from domestic sources can help in fiscal deficit reduction