Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions A22KBPK2WH
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget.

Which measure would you suggest to control the rising Revenue deficit of the government?

Options:

To increase grants given to the State Government

To increase the subsidy

To increase taxation

To increase government administrative expenses

Correct Answer:

To increase taxation

Explanation:

To control the rising Revenue Deficit of the government, the advisable measure would be:To increase taxation

Increasing taxation is a measure that can contribute to enhancing government revenue and thereby help in reducing the revenue deficit. By imposing higher taxes, the government can collect more revenue, which can be utilized to cover the deficit. This measure is in contrast to increasing grants, subsidies, or administrative expenses, which might further contribute to the deficit rather than alleviate it.

CUET Questions