In the Context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Down-sizing of bureaucracy 4. Selling/offloading the shares of Public Sector Undertakings Which o

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Q: 97 (IAS/2010)
In the Context of governance, consider the following:
1. Encouraging Foreign Direct Investment inflows
2. Privatization of higher educational Institutions
3. Down-sizing of bureaucracy
4. Selling/offloading the shares of Public Sector Undertakings
Which of the above can be used as measures to control the fiscal deficit in India?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,42,149,27,42,78,44

keywords: 

{'fiscal deficit': [0, 2, 2, 4], 'public sector undertakings': [0, 0, 1, 0], 'governance': [4, 1, 1, 13], 'privatization': [0, 0, 0, 1], 'foreign direct investment inflows': [0, 0, 1, 0], 'bureaucracy': [1, 0, 1, 0], 'india': [8, 1, 7, 13], 'measures': [1, 0, 0, 0], 'shares': [0, 3, 3, 6]}

Options involve measures to control fiscal deficit in India. The fiscal deficit is the difference between the government`s total revenue and its total expenditure.

Option-1: Encouraging Foreign Direct Investment (FDI) inflows brings in more private funding into the country but it does not directly lead to reduction of fiscal deficit because it is concerned with expenditure and revenue of government.

Option-2: Privatizing higher educational institutions can potentially reduce government expenses, contributing towards controlling fiscal deficit.

Option-3: Down-sizing bureaucracy would decrease government expenditure by reducing the amount spent on salaries and benefits, thus it could help in controlling fiscal deficit.

Option-4: Selling/offloading of shares of Public Sector Undertakings will give the government immediate revenue, helping to decrease the fiscal deficit.

Thus, Option 2, which includes measures 2, 3, and 4, is the correct answer because these three measures all directly influence the fiscal deficit by either reducing government expenditure or increasing government revenue.