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Which of the following statements best describes the term Fiscal profligacy?
- a)Removing fiscal barriers and discrepancies between the tax systems of the various countries
- b)Income tax exemption for new industries
- c)The act of spending money in a way that is not wise
- d)Official estimate of costs or revenues for proposed legislation
Correct answer is option 'C'. Can you explain this answer?
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Which of the following statements best describes the term Fiscal profl...
Fiscal Profligacy
Fiscal profligacy refers to the act of spending money in a way that is not wise or responsible. It typically involves excessive government spending, leading to budget deficits and increasing national debt levels.
Explanation
- Irresponsible Spending: Fiscal profligacy occurs when government officials allocate funds in a reckless manner without considering the long-term implications on the economy.
- Increased Debt: This behavior can lead to budget deficits, where government spending exceeds revenues, resulting in the need to borrow money to cover the shortfall. This, in turn, increases the national debt burden.
- Impact on Economy: Fiscal profligacy can have detrimental effects on the economy, such as inflation, reduced investor confidence, and potential financial crises.
- Opposite of Fiscal Prudence: Fiscal profligacy is the opposite of fiscal prudence, which involves responsible budgeting and spending practices to ensure financial stability and sustainability.
In conclusion, fiscal profligacy is a term used to describe irresponsible and excessive government spending that can have negative consequences on the economy and overall fiscal health. It is essential for governments to practice fiscal prudence to avoid falling into the trap of fiscal profligacy.
Fiscal profligacy refers to the act of spending money in a way that is not wise or responsible. It typically involves excessive government spending, leading to budget deficits and increasing national debt levels.
Explanation
- Irresponsible Spending: Fiscal profligacy occurs when government officials allocate funds in a reckless manner without considering the long-term implications on the economy.
- Increased Debt: This behavior can lead to budget deficits, where government spending exceeds revenues, resulting in the need to borrow money to cover the shortfall. This, in turn, increases the national debt burden.
- Impact on Economy: Fiscal profligacy can have detrimental effects on the economy, such as inflation, reduced investor confidence, and potential financial crises.
- Opposite of Fiscal Prudence: Fiscal profligacy is the opposite of fiscal prudence, which involves responsible budgeting and spending practices to ensure financial stability and sustainability.
In conclusion, fiscal profligacy is a term used to describe irresponsible and excessive government spending that can have negative consequences on the economy and overall fiscal health. It is essential for governments to practice fiscal prudence to avoid falling into the trap of fiscal profligacy.
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Which of the following statements best describes the term Fiscal profl...
Fiscal profligacy is opposite of fiscal prudence. It is the act of spending money or using something in a way that wastes it and is not wise. The costs of fiscal profligacy at the State level can be huge.
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Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer?
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Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer?.
Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer?.
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Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of the following statements best describes the term Fiscal profligacy?a)Removing fiscal barriers and discrepancies between the tax systems of the various countriesb)Income tax exemption for new industriesc)The act of spending money in a way that is not wised)Official estimate of costs or revenues for proposed legislationCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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