The correct answer is: d) All of the above
Fiscal discipline is the practice of managing government finances in a responsible way. It involves setting and sticking to a budget, controlling spending, and raising revenue in a sustainable way.
There are many reasons why fiscal discipline is important for Arunachal Pradesh. First, it helps to control public debt. When a government spends more money than it takes in, it has to borrow money to make up the difference. This can lead to a large and unsustainable debt burden.
Second, fiscal discipline helps to attract investment. Businesses are more likely to invest in a country that has a stable economy and a low level of debt.
Third, fiscal discipline helps to fund essential public services. When a government is able to control its spending, it can free up resources to invest in things like education, healthcare, and infrastructure.
In conclusion, fiscal discipline is important for Arunachal Pradesh for a number of reasons. It helps to control public debt, attract investment, and fund essential public services.
Here is a brief explanation of each option:
- a) Control public debt. Public debt is the total amount of money that a government owes. When a government spends more money than it takes in, it has to borrow money to make up the difference. This can lead to a large and unsustainable debt burden. Fiscal discipline helps to control public debt by setting and sticking to a budget, controlling spending, and raising revenue in a sustainable way.
- b) Attract investment. Businesses are more likely to invest in a country that has a stable economy and a low level of debt. Fiscal discipline helps to attract investment by creating a more stable environment for businesses.
- c) Fund essential public services. When a government is able to control its spending, it can free up resources to invest in things like education, healthcare, and infrastructure. Fiscal discipline helps to fund essential public services by ensuring that the government has the resources it needs to provide these services.