Question : What was the impact of the expansion of the state sector on India's fiscal deficit during the initial Five-year Plans?
Option 1: It led to a significant reduction in the fiscal deficit.
Option 2: It had no impact on the fiscal deficit.
Option 3: It contributed to an increase in the fiscal deficit.
Option 4: It resulted in a balanced budget.
Answer (1)
16th Jan, 2024
Correct Answer: It contributed to an increase in the fiscal deficit.
Solution : The expansion of the state sector during the initial Five-year Plans contributed to an increase in India's fiscal deficit, as the government's expenditure on public sector enterprises and infrastructure projects exceeded its revenues.
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