Practicing Success
For Deficit Reduction. Arrange the following in the correct sequence. A. Deficit Budget B. Increase the taxes C. Calculation of receipts and Expenditure - Financial year D. Frame policy to Balance the Budget E. Expenditure is more than Receipts Choose the correct answer from the options given below : |
C, E, A, D, B A, B, D, C, E E, A, B, C, D D, A, B, C, E |
C, E, A, D, B |
The correct answer is option (1) : C, E, A, D, B Here's the breakdown of the logical sequence for deficit reduction: Expenditure is more than Receipts (E): If the calculated expenditure is greater than the receipts, it signifies a deficit budget. Deficit Budget (A): This identifies the problem - a budget where spending exceeds income. Frame policy to Balance the Budget (D): Once the deficit is identified, the government needs to create a plan to achieve a balanced budget (where expenditure equals or is less than income). Increase the taxes (B): Depending on the policy, increasing taxes could be one of the strategies to generate more income and reduce the deficit. This sequence follows a logical flow from identifying the problem (deficit) to creating a plan (policy) and potentially implementing a solution (increasing taxes) to achieve a balanced budget. |