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Demonetisation and GST have definitely added transparency to the tax system and resulted in more taxpayers. _________________________. Otherwise there is no explanation for lower GDP growth in FY17 and FY18 as monsoons have been good, inflation low, crude oil price benign, CAD low, fiscal balances under control, rupee stronger, foreign flows higher and interest rates lower.
The statement before the blank talks positively about Demonetisation and GST. However, the one after the blank is negative in tone and tries to justify the lower GDP numbers. We need to find a statement that ‘bridges’ the gap between the two perspectives. Option A is incorrect as it talks about fiscal deficit but this does not provide a valid reason for low GDP numbers. Option B is incorrect as it merely states some facts regarding GDP numbers but does not provide a contradicting viewpoint. Option D is incorrect as it is positive in nature and matches with the statement before the blank but not the one after it. Option C is correct as this provides a different viewpoint and a possible reason for the low GDP numbers. Hence, option C is correct.
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