Practicing Success
Practicing Success
CUET Preparation Today
| According to you, which of the following is the reason for the economic crisis that the country faced in 1991? |
Insufficient tax collection Borrowing for meeting the consumption needs Increase in imports All of the above |
| All of the above |
| Inefficient management of the Indian economy can be traced back from 1980s which eventually resulted in a devastating economic crisis in 1991. The expenditure of the government exceeded the revenue by such large margins that meeting them through borrowings became unsustainable. Imports grew at a very high rate without matching the growth of exports and the forex balance declined to a level that was not adequate to finance imports for more than 2 weeks. Also, the government was not efficiently collecting the tax and utilising them. |
