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 c

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Submitted by examrobotsa on

Q: 94 (IAS/2017)
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 ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,101,77,36,14,27,101

keywords: 

{'gdp': [0, 0, 0, 1], 'percent': [5, 1, 3, 14], 'last decade': [0, 0, 2, 3]}

This question is about the economic status of India in the past decade with regards to the tax revenue and fiscal deficit as a percentage of its Gross Domestic Product (GDP).

Option 1 suggests that the tax revenue as a percentage of GDP has steadily increased, but the actual scenario may vary and is not necessarily a steady increase. Various factors like changes in tax laws, economic conditions, and government policies can influence the tax revenue.

Option 2 states that the fiscal deficit as a percentage of GDP has steadily increased. However, the fiscal deficit fluctuates based on government spending and revenue. It doesn`t necessarily mean that it has steadily increased.

Option 3 claims that both statements 1 and 2 are correct, which is not necessarily true considering the reasons above.

Option 4 states that neither statements 1 nor 2 are correct, which is the correct option. Over the past decade, both tax revenue and fiscal deficit as a percentage of GDP have not steadily increased, but fluctuated based on various factors.

Hence, the correct answer is 4 - Neither 1 nor 2.