{"id":91331,"date":"2025-06-01T10:53:32","date_gmt":"2025-06-01T10:53:32","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91331"},"modified":"2025-06-01T10:53:32","modified_gmt":"2025-06-01T10:53:32","slug":"there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/","title":{"rendered":"There has been a persistent deficit budget year after year. Which of t"},"content":{"rendered":"<p>There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?<\/p>\n<ul>\n<li>1. Reducing revenue expenditure<\/li>\n<li>2. Introducing new welfare schemes<\/li>\n<li>3. Rationalizing subsidies<\/li>\n<li>4. Expanding industries<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 and 3 only&#8221; option2=&#8221;2 and 3 only&#8221; option3=&#8221;1 only&#8221; option4=&#8221;1, 2, 3 and 4&#8243; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2015<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2015.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2015\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">Actions 1 (Reducing revenue expenditure) and 3 (Rationalizing subsidies) can be taken by the government to reduce a persistent deficit budget.<\/section>\n<section id=\"pyq-key-points\">A budget deficit occurs when a government&#8217;s total expenditures exceed its total revenues. To reduce the deficit, the government must either increase revenue or decrease expenditure.<\/section>\n<section id=\"pyq-additional-information\">Reducing revenue expenditure (e.g., on salaries, pensions, administrative costs) directly lowers government spending. Rationalizing subsidies (e.g., reducing their amount or targeting them better) also reduces expenditure. Introducing new welfare schemes typically increases government expenditure, thus increasing the deficit. Expanding industries is a long-term strategy for economic growth which *may* eventually lead to higher tax revenues, but it is not a direct or immediate action specifically aimed at *reducing* a persistent deficit through expenditure cuts or quick revenue increases; it might even require initial government investment.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Expanding industries Select the correct answer using the code given below. [amp_mcq option1=&#8221;1 and 3 only&#8221; option2=&#8221;2 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"There has been a persistent deficit budget year after year. Which of t\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/#more-91331\">Detailed Solution<span class=\"screen-reader-text\">There has been a persistent deficit budget year after year. Which of t<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1443,1120,1196],"class_list":["post-91331","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1443","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>There has been a persistent deficit budget year after year. Which of t<\/title>\n<meta name=\"description\" content=\"Actions 1 (Reducing revenue expenditure) and 3 (Rationalizing subsidies) can be taken by the government to reduce a persistent deficit budget. A budget deficit occurs when a government&#039;s total expenditures exceed its total revenues. 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Which of t","description":"Actions 1 (Reducing revenue expenditure) and 3 (Rationalizing subsidies) can be taken by the government to reduce a persistent deficit budget. A budget deficit occurs when a government's total expenditures exceed its total revenues. To reduce the deficit, the government must either increase revenue or decrease expenditure.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/","og_locale":"en_US","og_type":"article","og_title":"There has been a persistent deficit budget year after year. Which of t","og_description":"Actions 1 (Reducing revenue expenditure) and 3 (Rationalizing subsidies) can be taken by the government to reduce a persistent deficit budget. A budget deficit occurs when a government's total expenditures exceed its total revenues. To reduce the deficit, the government must either increase revenue or decrease expenditure.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:53:32+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/","url":"https:\/\/exam.pscnotes.com\/mcq\/there-has-been-a-persistent-deficit-budget-year-after-year-which-of-t\/","name":"There has been a persistent deficit budget year after year. 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