Correct answer: (a) 1 and 3 only
Explanation
- A
1 and 3 only
Cutting revenue expenditure and rationalising subsidies both reduce the fiscal deficit, other things equal. New welfare schemes and expanding industries (as spending) do not. Hence 1 and 3 only is the official key.
- B
2 and 3 only
New welfare schemes raise expenditure; they do not reduce a persistent deficit. Rationalising subsidies helps, but pairing it with statement 2 fails. This option is not the key.
- C
1 only
Reducing revenue expenditure helps, but subsidy rationalisation is also a valid consolidation step, so ‘1 only’ is incomplete. This option is not the key.
- D
1, 2, 3 and 4
All four would include new welfare schemes and industry expansion as deficit-cutting tools. Those typically raise outlays. This option is not the key.
Summary. Official key is (a) 1 and 3 only. A persistent deficit is closed by raising revenue or cutting spending. Revenue-expenditure control and subsidy reform are spending-side consolidation. New welfare schemes add committed expenditure. Expanding industries is not a deficit-reduction instrument in this list; it may even need public outlay. Statements 2 and 4 therefore fall.
PYQ trend
When UPSC asked this
Related PYQs from other years, newest first. Open a question to read it.
-
2021 · Q6 · General Studies · 2 marks
Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below -
2020 · Q63 · General Studies · 2 marks
Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Government's trading 3. Government's stockpiling 4. Consumer subsidies Select the correct answer using the code given below -
2019 · Q65 · General Studies · 2 marks
In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis? 1. The foreign currency earnings of India's IT sector 2. Increasing the government expenditure 3. Remittances from Indians abroad Select the correct answer using the code given below -
2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2016 · Q3 · General Studies · 2 marks
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 -
2016 · Q12 · General Studies · 2 marks
Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below -
2016 · Q71 · General Studies · 2 marks
What is/are the purpose/purposes of Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'? 1. To bring the idle gold lying with Indian households into the economy. 2. To promote FDI in the gold and jewellery sector. 3. To reduce India's dependence on gold imports. Select the correct answer using the code given below -
2015 · Q60 · General Studies · 2 marks
With reference to the Union Government, consider the following statements: 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. Which of the statements given above is/are correct?