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Directions: In the question below, a statement is given followed by two courses of action numbered I and II. A course of action is a practicable and feasible step or administrative decision to be taken for follow-up, improvement or further action in regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume everything in the statement to be true and decide which of the suggested courses of action follow(s) for pursuing.
Statement: Tax revenues almost always fall short of government's expenditure.
Courses of Action:
I. The Indian government should widen the tax net.
II. The government should devise innovative ways of taxation to make up the deficit.
  • a)
    Only I follows.
  • b)
    Only II follows.
  • c)
    Either I or II follows.
  • d)
    Neither I nor II follows.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Directions: In the question below, a statement is given followed by t...
I is not a practical solution, as widening tax net is no guarantee of making up of the deficit. It is a vague choice. There is no mention as to what extent the tax net needs to be spread, as the statement makes no mention of shortfall or deficit. Besides, the expenditure may also increase by the time government implements its decision.
II is a suitable course of action as deficit or shortfall, once determined, can be made up by devising innovative ways to tax people.
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Community Answer
Directions: In the question below, a statement is given followed by t...
Statement: Tax revenues almost always fall short of government's expenditure.

Courses of Action:
I. The Indian government should widen the tax net.
II. The government should devise innovative ways of taxation to make up the deficit.

Explanation:
The statement suggests that the tax revenues collected by the government are insufficient to cover its expenditure. This indicates a budget deficit, which needs to be addressed. Let's analyze each course of action to determine if it follows from the given statement.

I. The Indian government should widen the tax net:
This course of action suggests that the government should increase its tax base by bringing more individuals and entities under the tax net. By widening the tax net, the government can generate additional tax revenues to bridge the gap between its income and expenditure. This action aligns with the given statement as it aims to address the issue of falling short of revenue. Therefore, course of action I follows.

II. The government should devise innovative ways of taxation to make up the deficit:
This course of action suggests that the government should come up with innovative methods of taxation to compensate for the budget deficit. By implementing new and creative ways of taxation, the government can generate additional revenue streams and make up for the shortfall. This action also aligns with the given statement as it aims to address the issue of inadequate tax revenue. Therefore, course of action II follows.

Conclusion:
Both courses of action I and II follow from the given statement. The Indian government should widen the tax net and devise innovative ways of taxation to address the issue of falling short of tax revenues and cover its expenditure. Therefore, the correct answer is option 'B' - Only II follows.
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Directions: In the question below, a statement is given followed by two courses of action numbered I and II. A course of action is a practicable and feasible step or administrative decision to be taken for follow-up, improvement or further action in regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume everything in the statement to be true and decide which of the suggested courses of action follow(s) for pursuing.Statement: Tax revenues almost always fall short of government's expenditure.Courses of Action:I. The Indian government should widen the tax net.II. The government should devise innovative ways of taxation to make up the deficit.a)Only I follows.b)Only II follows.c)Either I or II follows.d)Neither I nor II follows.Correct answer is option 'B'. Can you explain this answer?
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Directions: In the question below, a statement is given followed by two courses of action numbered I and II. A course of action is a practicable and feasible step or administrative decision to be taken for follow-up, improvement or further action in regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume everything in the statement to be true and decide which of the suggested courses of action follow(s) for pursuing.Statement: Tax revenues almost always fall short of government's expenditure.Courses of Action:I. The Indian government should widen the tax net.II. The government should devise innovative ways of taxation to make up the deficit.a)Only I follows.b)Only II follows.c)Either I or II follows.d)Neither I nor II follows.Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: In the question below, a statement is given followed by two courses of action numbered I and II. A course of action is a practicable and feasible step or administrative decision to be taken for follow-up, improvement or further action in regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume everything in the statement to be true and decide which of the suggested courses of action follow(s) for pursuing.Statement: Tax revenues almost always fall short of government's expenditure.Courses of Action:I. The Indian government should widen the tax net.II. The government should devise innovative ways of taxation to make up the deficit.a)Only I follows.b)Only II follows.c)Either I or II follows.d)Neither I nor II follows.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: In the question below, a statement is given followed by two courses of action numbered I and II. A course of action is a practicable and feasible step or administrative decision to be taken for follow-up, improvement or further action in regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume everything in the statement to be true and decide which of the suggested courses of action follow(s) for pursuing.Statement: Tax revenues almost always fall short of government's expenditure.Courses of Action:I. The Indian government should widen the tax net.II. The government should devise innovative ways of taxation to make up the deficit.a)Only I follows.b)Only II follows.c)Either I or II follows.d)Neither I nor II follows.Correct answer is option 'B'. Can you explain this answer?.
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