Which one of the following statements about Indian economy during 2019-20 is not correct?
[amp_mcq option1=”There has been deceleration in growth rate.” option2=”There has been sluggish growth in tax revenue relative to the Budget Estimates.” option3=”Fiscal deficit as percentage of GDP has been as per the Budget Estimates.” option4=”The non-tax revenue registered a considerably higher growth.” correct=”option3″]
This question was previously asked in
UPSC CDS-2 – 2020
The fiscal year 2019-20 for the Indian economy was characterised by a slowdown in growth rate, sluggish tax revenue collection, and higher-than-budgeted fiscal deficit. Non-tax revenues, on the other hand, saw relatively strong growth.
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.