Fiscal Consolation in India includes 1 Elimination of tax exemptions 2 Cutting out non essential and...........

Economic Affairs Tax System

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Fiscal Consolation in India includes:

1. Elimination of tax exemptions.

2. Cutting out non-essential and unproductive activities.

3. Reduction of time and cost overruns on projects.

4. Tax reforms on direct taxes only.

Which of the above elements are correct?

1, 2 and 3 only

2, 3 and 4 only

2 and 4 only

1 and 3 only

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Explanation:

Fiscal consolidation in India includes:
a.Revenue reforms which include tax reforms on both direct and indirect tax front; reduction/elimination of tax exemptions and treating the revenue forgone as tax expenditure, improving efficiency of tax collection, including the arrears and stable medium term tax rates avoiding annual changes.
b.Expenditure reforms which include cutting out non-essential and unproductive activities, schemes and projects; allocation of resources to priority areas; reducing cost of services; rationalizing subsidies; reduction of time and cost overruns on projects and getting proper 'outcome' from output.