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. Rationalizing subsidies 4. Expanding ind

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Q: 48 (IAS/2015)
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. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,151,37,151,12,8,17

keywords: 

{'persistent deficit budget year': [0, 0, 0, 2], 'deficit': [0, 1, 0, 3], 'revenue expenditure': [0, 1, 0, 4], 'new welfare schemes': [0, 0, 0, 2], 'subsidies': [1, 0, 0, 1], 'government': [5, 0, 0, 1], 'actions': [1, 0, 2, 5], 'year': [27, 4, 33, 49]}

To reduce a persistent deficit budget, the government can take the following actions:

1. Reducing revenue expenditure: By cutting down on unnecessary expenses and optimizing the allocation of funds, the government can reduce its overall expenditure.

2. Rationalizing subsidies: Reviewing and streamlining subsidies can help reduce the fiscal burden. This involves targeting subsidies to those who truly need them and eliminating or reducing subsidies that are not effective or sustainable.

3. Expanding industries: Encouraging the growth of industries can lead to increased revenue generation through taxes and other sources, which can help offset the budget deficit.

Therefore, the correct answer would be:

1 and 3 only