The term 'Fiscal Consolidation' refers to policies aimed at:
A. Only printing money to finance deficits
B. Reducing the fiscal deficit and improving the sustainability of public finances
C. Increasing the fiscal deficit continuously
D. Only increasing tax rates without expenditure reform
Answer: Option B
Solution (By JKSSB Mock Tests)
Fiscal consolidation involves measures to reduce the fiscal deficit and put government debt on a sustainable path through a combination of revenue and expenditure reforms.
Explanation:
GST replaced multiple cascading taxes with a unified tax on the supply of goods and services, allowing input tax credit and involving both the Centre and the States.
Explanation:
A Pareto efficient allocation is one where it is impossible to make any individual better off without making at least one individual worse off.
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