Question

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 *** schemes

3. Rationalizing subsidies

4. Expanding industries

Select the correct answer using the code given below.

(a) 1 and 3 only (b) 2 and 3 only (c) 1 only (d) 1, 2, 3 and 4

Answer 1

(a) Government can go for petroleum products deregulation. Rationalizing subsidies is also the solution.