Persistent Deficit Budget

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
select the correct answer using the code given below.

  1. 1 and 3 only
  2. 2 and 3 only
  3. 1 only
  4. 1, 2, 3 and 4
Monis Rasool Professor Asked on 26th August 2015 in Economics.
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  • 1 Answer(s)

    Answer : (1) 1 and 3 only
    There has been a persistent deficit budget year after year. Reducing revenue expenditure  and rationalizing subsidies can be taken by the government to reduce the deficit.

    Anurag Mishra Professor Answered on 27th August 2015.
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