Which one of the following statements about Indian economy during 2019-20 is not correct?
There has been deceleration in growth rate.
There has been sluggish growth in tax revenue relative to the Budget Estimates.
Fiscal deficit as percentage of GDP has been as per the Budget Estimates.
The non-tax revenue registered a considerably higher growth.
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-2 – 2020
Statement A is correct; India’s GDP growth rate decelerated in 2019-20. Statement B is correct; tax revenue growth was sluggish and fell short of the Budget Estimates due to the economic slowdown. Statement D is correct; non-tax revenue, boosted by factors like a large dividend transfer from the RBI, registered considerable growth. Statement C claims that the fiscal deficit as a percentage of GDP was as per the Budget Estimates. This is incorrect. The Budget Estimate for 2019-20 fiscal deficit was 3.3% of GDP, but the actual fiscal deficit for 2019-20 turned out to be significantly higher (later reported around 4.6%) due to revenue shortfalls and increased expenditure.