The correct answer is (a) 2014-2015.
The fiscal deficit is the difference between the government’s revenue and expenditure. The fiscal deficit/GDP ratio is the ratio of the fiscal deficit to the gross domestic product (GDP). The GDP is the total value of all goods and services produced in a country in a given year.
The fiscal deficit/GDP ratio is a measure of the government’s borrowing requirement. A high fiscal deficit/GDP ratio indicates that the government is borrowing a lot of money to finance its expenditure. This can be a problem if the government is not able to repay its debts.
The fiscal deficit/GDP ratio has been increasing in India in recent years. In the financial year 2014-2015, the fiscal deficit/GDP ratio was 4.5%. This was the highest fiscal deficit/GDP ratio in India since 1990-1991.
There are a number of reasons for the increase in the fiscal deficit/GDP ratio in India. One reason is the increase in government expenditure. The government has been increasing its expenditure on infrastructure, social welfare, and defence. Another reason is the decline in government revenue. The government’s revenue has been declining due to the slowdown in economic growth and the decline in tax collection.
The increase in the fiscal deficit/GDP ratio is a cause for concern. A high fiscal deficit/GDP ratio can lead to inflation, currency depreciation, and a loss of confidence in the government. The government needs to take steps to reduce the fiscal deficit/GDP ratio. This can be done by increasing government revenue and reducing government expenditure.
Option (b), 2013-2014: The fiscal deficit/GDP ratio in 2013-2014 was 4.4%. This was the second highest fiscal deficit/GDP ratio in India since 1990-1991.
Option (c), 2012-2013: The fiscal deficit/GDP ratio in 2012-2013 was 4.3%. This was the third highest fiscal deficit/GDP ratio in India since 1990-1991.
Option (d), 2011-2012: The fiscal deficit/GDP ratio in 2011-2012 was 4.2%. This was the fourth highest fiscal deficit/GDP ratio in India since 1990-1991.