{"id":91519,"date":"2025-06-01T10:59:14","date_gmt":"2025-06-01T10:59:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91519"},"modified":"2025-06-01T10:59:14","modified_gmt":"2025-06-01T10:59:14","slug":"consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/","title":{"rendered":"Consider the following statements:\n  1. Tax revenue as a percent of GD"},"content":{"rendered":"<p>Consider the following statements:<\/p>\n<ul>\n<li>1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.<\/li>\n<li>2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option4&#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; 2017<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2017.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2017\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is D, as neither statement 1 nor statement 2 is correct.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nBoth statements claim a &#8220;steadily increased&#8221; trend over the last decade (referring to the decade prior to the question&#8217;s likely year, e.g., 2003-2013).<br \/>\n1. Tax revenue as a percent of GDP: India&#8217;s tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis.<br \/>\n2. Fiscal deficit as a percent of GDP: Governments aim to manage and often reduce the fiscal deficit as a percentage of GDP for macroeconomic stability. While stimulus measures or economic slowdowns can lead to temporary increases, a *steady* increase over a decade is not a typical pattern or policy goal and generally has not happened in the Indian context; it fluctuates based on budgetary policies and economic conditions.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nEconomic indicators like tax-to-GDP ratio and fiscal deficit are influenced by numerous factors and rarely exhibit a strictly &#8216;steady&#8217; trend over a long period like a decade. Analyzing specific government budgets and economic reports from the relevant period would confirm the non-steady nature of these trends.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is\/are correct ? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements:\n  1. Tax revenue as a percent of GD\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/#more-91519\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements:<br \/>\n  1. Tax revenue as a percent of GD<\/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":[1101,1120,1196],"class_list":["post-91519","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1101","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>Consider the following statements:  1. Tax revenue as a percent of GD<\/title>\n<meta name=\"description\" content=\"The correct option is D, as neither statement 1 nor statement 2 is correct. Both statements claim a &quot;steadily increased&quot; trend over the last decade (referring to the decade prior to the question&#039;s likely year, e.g., 2003-2013). 1. Tax revenue as a percent of GDP: India&#039;s tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis. 2. Fiscal deficit as a percent of GDP: Governments aim to manage and often reduce the fiscal deficit as a percentage of GDP for macroeconomic stability. While stimulus measures or economic slowdowns can lead to temporary increases, a *steady* increase over a decade is not a typical pattern or policy goal and generally has not happened in the Indian context; it fluctuates based on budgetary policies and economic conditions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements:  1. Tax revenue as a percent of GD\" \/>\n<meta property=\"og:description\" content=\"The correct option is D, as neither statement 1 nor statement 2 is correct. Both statements claim a &quot;steadily increased&quot; trend over the last decade (referring to the decade prior to the question&#039;s likely year, e.g., 2003-2013). 1. Tax revenue as a percent of GDP: India&#039;s tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis. 2. Fiscal deficit as a percent of GDP: Governments aim to manage and often reduce the fiscal deficit as a percentage of GDP for macroeconomic stability. While stimulus measures or economic slowdowns can lead to temporary increases, a *steady* increase over a decade is not a typical pattern or policy goal and generally has not happened in the Indian context; it fluctuates based on budgetary policies and economic conditions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:59:14+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following statements:  1. Tax revenue as a percent of GD","description":"The correct option is D, as neither statement 1 nor statement 2 is correct. Both statements claim a \"steadily increased\" trend over the last decade (referring to the decade prior to the question's likely year, e.g., 2003-2013). 1. Tax revenue as a percent of GDP: India's tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis. 2. Fiscal deficit as a percent of GDP: Governments aim to manage and often reduce the fiscal deficit as a percentage of GDP for macroeconomic stability. While stimulus measures or economic slowdowns can lead to temporary increases, a *steady* increase over a decade is not a typical pattern or policy goal and generally has not happened in the Indian context; it fluctuates based on budgetary policies and economic conditions.","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\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements:  1. Tax revenue as a percent of GD","og_description":"The correct option is D, as neither statement 1 nor statement 2 is correct. Both statements claim a \"steadily increased\" trend over the last decade (referring to the decade prior to the question's likely year, e.g., 2003-2013). 1. Tax revenue as a percent of GDP: India's tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis. 2. Fiscal deficit as a percent of GDP: Governments aim to manage and often reduce the fiscal deficit as a percentage of GDP for macroeconomic stability. While stimulus measures or economic slowdowns can lead to temporary increases, a *steady* increase over a decade is not a typical pattern or policy goal and generally has not happened in the Indian context; it fluctuates based on budgetary policies and economic conditions.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:59:14+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\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-tax-revenue-as-a-percent-of-gd\/","name":"Consider the following statements: 1. Tax revenue as a percent of GD","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:59:14+00:00","dateModified":"2025-06-01T10:59:14+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is D, as neither statement 1 nor statement 2 is correct. Both statements claim a \"steadily increased\" trend over the last decade (referring to the decade prior to the question's likely year, e.g., 2003-2013). 1. Tax revenue as a percent of GDP: India's tax-to-GDP ratio has historically fluctuated based on economic cycles, policy changes (like tax reforms), and collection efficiency. While there have been efforts to increase it, it did not show a *steady* increase over a full decade; there were ups and downs, including a dip after the 2008 global financial crisis. 2. 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