Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:
How has economic reform affected developmental and welfare expenditures?
Options:
Increased developmental and welfare expenditures
Decreased developmental and welfare expenditures
No significant impact on developmental and welfare expenditures
Shifted focus from developmental to welfare expenditures
Correct Answer:
Decreased developmental and welfare expenditures
Explanation:
Economic reforms, with their focus on limiting public expenditure, have had a negative impact on developmental and welfare expenditures. Tax reductions, reduced customs duties, and tax incentives for foreign investors have resulted in decreased revenue for the government, limiting the funds available for developmental and welfare initiatives.