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UPSC 2017: Consider the following statements: 1. In the last decade, there has been a sustained increase in the proportion of India’s tax revenue to GDP. 2. In the last decade, there has been a sustained increase in the proportion of India’s fiscal deficit to GDP. Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (d) Neither 1 nor 2
Economic Survey data show the Centre’s gross tax-to-GDP ratio rose up to 2007-08, fell after the 2008 crisis and fluctuated thereafter (e.g., 12.1 % in 2007-08, 10.5 % in 2015-16), so there was no sustained increase. Fiscal deficit as a share of GDP declined till 2007-08, spiked in 2009-10, and has generally trended downward since, not showing a sustained increase either. Hence both statements are incorrect. ([indiabudget.gov.in](https://www.indiabudget.gov.in/economicsurvey/ebook_es2021/files/basic-html/page749.html?utm_source=openai))
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What is the correct answer to this UPSC 2017 Indian Economy question?▼
The correct answer is option (d): Neither 1 nor 2. 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 2017, GS Paper 1, as Question 94. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
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.