Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Government Spending Areas Without Returns
Before the 1991 crisis, the government spent a large share of income on areas not providing immediate returns such as:
- Agriculture and industry
- Social sector and defence — Correct Answer
- Exports and imports
- Banking and insurance
Explanation:
Correct Answer Explanation
Government spent heavily on social sector and defence which do not provide immediate returns.
Key Points:
- Rest of revenue needed to be utilised in a highly efficient manner.
- Income from public sector undertakings was not high enough.
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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.
