Question
UPSC Prelims 2017 Question:
Consider the following statements
- Tax revenue as a percent of GDP of India has steadily increased in the last decade.
- Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct?
Answer (Detailed Solution Below)
Option 4: Neither 1 nor 2
Detailed Solution
Explanation:
- India Tax revenue as percentage of GDP reached an all-time high of 10.8 % in Mar 2015. However, it had witnessed a fall during 2008 to 2010 after the subprime crisis in the United States of America. So, statement 1 is not correct.
- Fiscal Deficit as a percentage of GDP has witnessed a decline from 2011 to 2016. So, statement 2 is not correct.
Therefore, option (4) is the correct answer.
Subject: Economics | Public Finance
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