Government has decided to contain fiscal deficit at what percent of GDP for the fiscal year ending March 2019 to avoid a twin deficit problem?
Answer with explanationAnswer: Option D
On September 13, 2018, Govt decided to contain fiscal deficit at 3.3 pc of GDP for the fiscal year ending March 2019 to avoid a twin deficit problem. Excise duty cut on petrol and diesel has been ruled out. Further, cutting expenditure, though might bring down the fiscal deficit , would result in a stunted economic growth in the long run. Hence, the share of non-oil tax to GDP has to be hiked. The government’s finances have shown improvement in July with fiscal deficit at 86.5 per cent of the Budget Estimate (BE).
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