According to the Economic Survey, 2022 – 23, what fiscal policy response did the Government of India undertake in response to the aggravated global supply disruptions ?
1. Decreasing food and fertiliser subsidies
2. Increasing taxes on fuel and imported products
3. Reducing taxes on fuel and certain imported products
Select the correct answer from the codes given below :

According to the Economic Survey 2022-23, the Government of India adopted a proactive fiscal policy to mitigate the impact of global supply disruptions and rising commodity prices:

• Subsidies: The government increased food and fertiliser subsidies (e.g., through the extension of PMGKAY and higher fertiliser urea/DAP subsidies) to protect the vulnerable, making statement 1 incorrect.
• Fuel Taxes: To curb inflation, the government reduced central excise duties on petrol and diesel in May 2022. This makes statement 2 incorrect and statement 3 correct.
• Import Duties: Customs duties on several raw materials and inputs (such as coking coal, ferronickel, and certain chemicals) were reduced to zero or lowered to reduce the cost of production and manage domestic prices.

Therefore, only statement 3 is a correct description of the fiscal response.