Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Fiscal Policy Impact of Reforms
Economic reforms have affected fiscal policies by:
- Increasing public expenditure in social sectors
- Placing limits on growth of public expenditure especially in social sectors — Correct Answer
- Increasing tax rates substantially
- Eliminating all government spending
Explanation:
Correct Answer Explanation
Economic reforms have placed limits on the growth of public expenditure, especially in social sectors.
Key Points:
- Tax reductions have not resulted in increased tax revenue.
- Tariff reduction curtailed scope for raising revenue through custom duties.
- Tax incentives to attract foreign investment further reduced tax revenues.
- Negative impact on developmental and welfare expenditures.
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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.
