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In 1986-87, the overall fiscal deficit of India touched an all time high of
  • a)
    5% of GDP.
  • b)
    7% of GDP.
  • c)
    9% of GDP.
  • d)
    10% of GDP.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
In 1986-87, the overall fiscal deficit of India touched an all time hi...
The Indian government embarked upon an expansionist policy without tackling the problem of resource mobilization, which was constrained because of the tax cuts. In 1986-87, the overall fiscal deficit touched an all time high of 9% of GDP.
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