Economics · Fiscal Policy
Read the following statements about deficit reduction: A. Government deficit can be reduced by an increase in taxes or reduction in expenditure. B. In India, the government has been trying to increase tax revenue with greater reliance on direct taxes (indirect taxes are regressive in nature - they impact all income groups equally). Identify the CORRECT statement/statements.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only B
- 2Both A and B✓
- 3Only A
- 4Neither A nor B
Correct answer
Both A and B
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