Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Fiscal Deficit Source of 1991 Crisis
In the late 1980s, meeting government expenditure through borrowings became:
- Very profitable
- Unsustainable — Correct Answer
- Unnecessary
- Easy to manage
Explanation:
Correct Answer Explanation
Meeting expenditure through borrowings became unsustainable as government expenditure exceeded revenue by large margins.
Key Points:
- Prices of essential goods rose sharply.
- Imports grew without matching export growth.
- No country was willing to lend to India.
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This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
