According to the Economic Survey, 2022-23, what fiscal policy response did the Government of India undertake in response to the aggravated global supply disruptions?1.Decreasing food and fertiliser subsidies2.Increasing taxes on fuel and imported products3.Reducing taxes on fuel and certain imported productsSelect the correct answer from the codes given below:

1. A

   Only 3

   Option (a) asserts that only statement 3 is correct regarding the fiscal policy response. The Economic Survey 2022-23 highlights that to cushion the domestic economy from aggravated global supply disruptions and rising inflation, the government undertook targeted measures including reducing taxes on fuel and certain imported products. This deliberate fiscal action helped in mitigating cost-pressures on consumers and domestic industries, making it the correct and complete option among the given choices.

2. B

   Only 1

   Option (b) states that only statement 1 is correct, claiming that the government decreased food and fertiliser subsidies. In reality, food and fertiliser subsidies were significantly increased during this period to protect vulnerable populations and farmers from soaring international commodity prices. Therefore, this option is incorrect.

3. C

   Only 2

   Option (c) claims that only statement 2 is correct by suggesting an increase in taxes on fuel and imported products. Raising fuel and import taxes would have exacerbated inflationary pressures and burdened consumers during a global supply crisis, which contradicts the actual proactive fiscal relief measures adopted. Hence, this option is incorrect.

4. D

   None of the above

   Option (d) suggests that none of the statements are correct. Since statement 3 accurately reflects the fiscal policy response of reducing taxes on fuel and certain imported products as detailed in the Economic Survey 2022-23, this option is clearly incorrect.

Summary. Official key is (a) according to the Economic Survey 2022-23. The government responded to global supply disruptions by lowering taxes on fuel and select imports rather than raising them or cutting welfare subsidies. Statement 3 correctly captures this fiscal relief measure, whereas statements 1 and 2 describe actions that run contrary to the actual policy stance. Thus, only statement 3 holds true, making option (a) the correct choice.