Which of the following is/are likely to contribute in reducing fiscal deficit of the government?

  1. Cutting subsidies
  2. Increasing  tax-GDP ratio
  3. Money raised through government securities
  4. Loan from IMF and World Bank

Select the correct option from codes given below:

Answer: [A] Only 1 & 2

Money raised through government securities and loans from IMF and World Bank will create liability to the government and hence, will not reduce fiscal deficit of the government.

This question is a part of GKToday's Integrated IAS General Studies Module