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Question No. 232Interactive Test Mode
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Q232. 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?

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?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2017 • Indian Economy

Correct Answer: Option (D) — Neither 1 nor 2

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: India's Tax-to-GDP ratio has not increased monotonically or steadily over the decade (2007–2017); it experienced fluctuations due to the 2008 global economic crisis and shifting growth dynamics.

Statement 2 is incorrect: The fiscal deficit as a percentage of GDP rose post-2008 due to stimulus measures and subsequently declined following fiscal consolidation paths under the FRBM framework; hence it did not steadily increase.

Elimination Heuristic & Exam Approach

Extreme qualifiers such as 'steadily increased' or 'continuously declined' spanning an entire decade are classic UPSC traps. Macroeconomic variables like fiscal deficit and tax ratios are subject to business cycles and policy shifts, making steady one-directional movement over a decade improbable.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2017 (Q232)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — Neither 1 nor 2

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Frequently Asked Questions — UPSC Prelims 2017 Q232

What is the official answer for UPSC Prelims 2017 GS Paper I Question 232 (Indian Economy)?

The official UPSC answer key for this 2017 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "Neither 1 nor 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2017 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

Extreme qualifiers such as 'steadily increased' or 'continuously declined' spanning an entire decade are classic UPSC traps. Macroeconomic variables like fiscal deficit and tax ratios are subject to business cycles and policy shifts, making steady onedirectional movement over a decade improbable.

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