Acme Ai
A
अ
Question No. 233Interactive Test Mode
00:00
+2-0.66

Q233. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalising subsidies 4. Reducing import duty Select the correct answer using the code given below.

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalising subsidies
  4. Reducing import duty Select the correct answer using the code given below.
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 2016 • Indian Economy

Correct Answer: Option (C) — 1 and 3 only

Concept & Option Breakdown

Standard Reference Verified

To curb a persistent budget/fiscal deficit, the government must curtail expenditure or enhance revenue receipts:

  1. Reducing revenue expenditure (Statement 1) cuts non-capital outlays, directly reducing the deficit.
  2. Introducing new welfare schemes (Statement 2) raises expenditure and widens the deficit.
  3. Rationalising subsidies (Statement 3) reduces leakages and cuts fiscal burden, helping consolidate finances.
  4. Reducing import duties (Statement 4) decreases customs tax collections, further widening the deficit unless compensated by other revenue streams.
Reviewed by Avinash Sir & Acme AI Research Team

Practice Full-Length & Sectional Prelims Mocks on this Interface

50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.

Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2016 (Q233)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — 1 and 3 only

Related & Repeated Prelims PYQs (9)

Questions from other UPSC Prelims years testing the same or closely linked concept.

View Cluster in 3D Graph
2015 • Q26797% Match

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing rev

Indian Economy • Indian Economic Planning & GrowthSolve
2010 • Q24286% Match

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Do

Indian Economy • Fiscal Policy & Public FinanceSolve
2010 • Q24085% Match

Consider the following actions by the Government: 1. Cutting the tax rates 2. Increasing the government spending 3. Abolishing the subsidies in the context of e

Indian Economy • Fiscal Policy & Public FinanceSolve
2011 • Q27784% Match

Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

Indian Economy • Indian Economic Planning & GrowthSolve
2014 • Q27081% Match

With reference to the Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries an

Indian Economy • Indian Economic Planning & GrowthSolve
2012 • Q13281% Match

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

Indian Economy • Indian Economic Planning & GrowthSolve
1997 • Q24881% Match

Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the p

Indian Economy • Fiscal Policy & Public FinanceSolve
2001 • Q24680% Match

Match List-I with List-II and select the correct answer using the codes given below the lists: | List-I (Term) | List-II (Explanation) | | :--- | :--- | | A. F

Indian Economy • Fiscal Policy & Public FinanceSolve
2015 • Q18280% Match

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

Indian Economy • Indian Economic Planning & GrowthSolve

More PYQs from Indian Economy (Indian Economic Planning & Growth)

Master the Indian Economy syllabus cluster by practicing these related previous year questions.

View All Indian Economy PYQs
2022 • Q227Indian Economic Planning & Growth

With reference to the expenditure made by an organization or a company, which of the following statements is/are correct? 1. Acquiring new technology

Indian EconomyPractice
2022 • Q228Indian Economic Planning & Growth

With reference to Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings.

Indian EconomyPractice
2021 • Q229Indian Economic Planning & Growth

Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India?

Indian EconomyPractice
2020 • Q230Indian Economic Planning & Growth

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding o

Indian EconomyPractice
2018 • Q231Indian Economic Planning & Growth

With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the f

Indian EconomyPractice
2017 • Q232Indian Economic Planning & Growth

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 perce

Indian EconomyPractice
2016 • Q234Indian Economic Planning & Growth

Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings

Indian EconomyPractice
2024 • Q1Indian Economic Planning & Growth

With reference to the sectors of the Indian economy, consider the following pairs: | Economic activity | Sector | | :--- | :--- | | 1. Storage of agr

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 2016 Q233

What is the official answer for UPSC Prelims 2016 GS Paper I Question 233 (Indian Economy)?

The official UPSC answer key for this 2016 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "1 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2016 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?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

Beyond Previous Year Questions

Structured Prelims Practice & Mentorship

Pair previous year question analysis with full-length simulated mock tests and 1-on-1 faculty guidance.

APT 2027 • 50 Prelims Tests17% OFF

Acme Prelims Test Series (APT)

Built to eliminate 1/3rd negative marking losses and 50–50 option traps through structured simulation and NCERT-backed keys.

  • 50 High-Yield Tests: Subject Sectionals, Current Affairs, CSAT Paper II & Full-Length Simulators
  • 1/3rd Penalty & Trap Analytics: Identify whether marks are lost to over-attempting or conceptual gaps
  • Option-by-Option NCERT Keys: Detailed distractor analysis and elimination logic for every question
  • Custom PDF-to-Mock Generator: Convert your revision notes or current affairs PDFs into practice tests
Complete 50-Test Package
₹1,493₹1,799• Valid till Prelims 2027
1-on-1 Personal MentorshipCapped at 10 Seats

1-on-1 UPSC Mentorship with Avinash Sir

Weekly 1-on-1 strategy reviews, daily study accountability, and personalized MCQ attempt audits with an experienced UPSC mentor.

  • Weekly 1-on-1 Sessions: Direct mentorship with Avinash Sir (Former Plutus IAS Mentor, UPSC & UPPCS Mains Written)
  • APT 50-Test Series Included: Full Prelims GS1 & CSAT test series bundled at no additional cost
  • Mock Attempt & Elimination Audit: Question-by-question review to calibrate your risk and attempt accuracy
  • Prelims & Integrated Tracks: Available as dedicated Prelims mentorship or end-to-end Prelims + Mains guidance
Prelims & Integrated Tracks
17% OFF• Includes APT 50-Test Series