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Question No. 267Interactive Test Mode
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Q267. 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 revenue expenditure 2. Introducing new welfare schemes 3. Rationalising subsidies 4. Expanding industries Select the correct answer using the code given below.

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 revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalising subsidies
  4. Expanding industries 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

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Official UPSC Answer KeyUPSC Prelims 2015 • Indian Economy

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

Concept & Option Breakdown

Standard Reference Verified

1 is correct: Reducing revenue expenditure directly curbs non-productive routine spending, reducing the budget deficit. 2 is incorrect: Introducing new welfare schemes increases government spending, worsening the deficit in the short term. 3 is correct: Rationalizing subsidies eliminates leakages and targeted waste, lowering government outlay. 4 is incorrect: Industrial expansion may require immediate capital investment from the government and yields tax revenues only in the long term, thus it is not an immediate deficit-reduction tool.

Elimination Heuristic & Exam Approach

Eliminate Option 2: New welfare schemes increase government expenditure, which widens deficits. This eliminates (b) and (d) immediately.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2015 (Q267)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (A) — 1 and 3 only

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Frequently Asked Questions — UPSC Prelims 2015 Q267

What is the official answer for UPSC Prelims 2015 GS Paper I Question 267 (Indian Economy)?

The official UPSC answer key for this 2015 Indian Economy (Indian Economic Planning & Growth) question is Option (A): "1 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2015 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?

Eliminate Option 2: New welfare schemes increase government expenditure, which widens deficits. This eliminates (b) and (d) immediately.

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