Loading...
UPSC 2011: Which one of the following statements appropriately describes the “fiscal stimulus”?
(a)It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
(b)It is an intense affirmative action of the Government to boost economic activity in the country
(c)It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(d)It is an extreme affirmative action by the Government to pursue its policy of financial inclusion
Attempt This Question
Not attemptedCorrect Answer: (b) It is an intense affirmative action of the Government to boost economic activity in the country
A fiscal stimulus refers to deliberate expansionary actions—such as increased public expenditure, tax cuts or both—undertaken by the government to revive or accelerate economic activity during a slowdown. It is not confined to a single sector, loan‐targeting, or financial-inclusion drives, making option (b) the only apt general description.
Related Current Affairs
Related UPSC Questions
More from Fiscal Policy & Budget
2010easy
Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?
2013easy
In India, deficit financing is used for raising resources for
2006easy
Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns
Related Indian Economy Topics
Frequently Asked Questions
What is the correct answer to this UPSC 2011 Indian Economy question?▼
The correct answer is option (b): It is an intense affirmative action of the Government to boost economic activity in the country. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2011, GS Paper 1, as Question 8. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Fiscal Policy & Budget?▼
UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.