Economy & Business MCQs

21.

What does 'fiscal consolidation' refer to in this context?

A Increasing government debt

B Reducing the fiscal deficit and public debt

C Increasing government spending

D Raising taxes significantly

22.

The reduction in fiscal deficit is a sign of:

A Fiscal indiscipline

B Fiscal consolidation and responsible economic management

C Increased government debt

D Reduced economic growth

23.

What is a potential challenge to achieving the fiscal deficit targets?

A Stable global economic conditions

B Global economic uncertainties and potential revenue shortfalls

C Increased tax compliance

D Reduced government spending

24.

The government remains committed to adhering to the:

A Fiscal deficit roadmap

B Increased borrowing plan

C Revenue expenditure increase

D Disinvestment halt

25.

A lower fiscal deficit enhances India's:

A Credit risk

B Creditworthiness

C Dependence on foreign aid

D Fiscal vulnerability

26.

Successful disinvestment of public sector undertakings (PSUs) contributes to:

A Reducing government revenues

B Bolstering government revenues

C Increasing fiscal deficit

D Decreasing private investment

27.

What is a benefit of a lower fiscal deficit for the economy?

A Increased government borrowing requirements

B Reduced pressure on interest rates

C Decreased private investment

D Lowered creditworthiness

28.

The government's expenditure management strategy prioritizes:

A Increasing non-essential revenue expenditure

B Capital expenditure for infrastructure development

C Reducing tax compliance

D Disinvestment of all PSUs

29.

What are the key drivers for the reduction in the fiscal deficit?

A Reduced economic activity and increased expenditure

B Robust revenue growth and prudent expenditure management

C Decreased tax compliance and increased borrowing

D Disinvestment of profitable PSUs

30.

What is the projected trend for India's fiscal deficit in FY 2025-26?

A Increase

B Narrowing

C Stagnation

D Unpredictable