Economics · Fiscal Policy
The government decides to increase spending on rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY) while keeping its overall fiscal deficit targets unchanged. What combination of fiscal measures can make this possible?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Raise revenue through indirect taxes or non-tax sources and rationalize subsidies✓
- 2Borrow more aggressively from the Reserve Bank of India
- 3Monetize non-core public sector assets exclusively through aggressive disinvestment
- 4Reduce capital expenditure across other critical infrastructure projects
Correct answer
Raise revenue through indirect taxes or non-tax sources and rationalize subsidies
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