There has been a persistent deficit budget year after year Which action actions of the following can...........

Economic Affairs Public Finance and Debt Management

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

1. Reducing revenue expenditure

2. Introducing new welfare schemes

3. Rationalizing subsidies

4. Reducing import duty

Select the correct answer using the code given below.

1 only

2 and 3 only

1 and 3 only

All of the above

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Explanation:

Third option is correct.
Second is incorrect because more welfare schemes will increase expenditure, which will led to increase deficit.
Reducing revenue expenditure and rationalizing subsidies will cut down on the budget deficit.
Expanding industries will also need investments which will increase expenditure.