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 or GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?
Options:
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither1nor 2
Show Answer
Answer:
Correct Answer: D
Solution:
- Exp. [d] Tax revenue to GDP ratio (2007-11.89%, 2008-10.75%, 2009-9.64%, 2010-10.19%, 2011-8.98%, 2012-10.79%), In the recent budget (2016-2017) total tax revenue was calculated to be 11.3% of GDP ,this data shows that tax revenue in India has not increased in the last decade So, the 1st statement is wrong. Fiscal deficit in India was around 6% in 2008-09 in the wake of global financial crisis after that it came down to 4.5% in 2013-14 and in the recent budget it was calculated to be 3.2% so the 2nd statement is also wrong.
BETA
