Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?

QUESTION

Medium

Economy

Prelims 2017

Consider the following statements :

Tax revenue as a percent of GDP of India has steadily increased in the last decade.
Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Statement 1 is Incorrect: Tax revenue as a percentage of GDP in India has not steadily increased over the last decade (2007-2017). There have been fluctuations in tax revenue as a percentage of GDP during this period, influenced by various economic factors and government policies.

Statement 2 is Incorrect: Similarly, the fiscal deficit as a percentage of GDP in India has not steadily increased over the last decade (2007-2017). While there have been periods of increase, there have also been efforts by the government to reduce the fiscal deficit through fiscal consolidation measures. Therefore, neither statement is correct.

Hence, option D is the correct answer.

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