Question : The government's fiscal deficit can be reduced by ____________.
Option 1: Increasing revenue expenditure
Option 2: Decreasing capital receipts
Option 3: Controlling non-plan expenditure
Option 4: Expanding borrowings
Correct Answer: Controlling non-plan expenditure
Solution : The correct answer is (C) Controlling non-plan expenditure.
The fiscal deficit represents the difference between the government's total expenditure and its total revenue. It indicates the extent to which the government needs to borrow to finance its expenses.
Controlling non-plan expenditure refers to implementing measures to manage and reduce government spending on items that are not related to planned development programs or projects. By controlling non-plan expenditure, the government can effectively reduce its overall expenditure and, consequently, the fiscal deficit.
