WBCS.LIVE practice question

Read the following about Deficit reduction. A. Government deficit can be reduced by an increase in taxes or reduction in expenditure. B. In India, the government has been trying to increase tax revenue with greater reliance on direct taxes (indirect taxes are regressive in nature-they impact all income groups equally). Identify the CORRECT statement / statements.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only A
  2. Both A and B
  3. Only B
  4. Neither A nor B

Correct answer and explanation

Correct answer: Both A and B