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Consider the following statements:
1. The 2024-25 Union Budget projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.
2. The government aims to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.
3. The combined fiscal deficit of central and state governments is expected to reach 10% of GDP for several years.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    1 and 2 Only
  • c)
    1 and 3 Only
  • d)
    1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:1. The 2024-25 Union Budget project...
- Statement 1: Correct. The 2024-25 Union Budget indeed projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.
- Statement 2: Correct. The budget also set a goal to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.
- Statement 3: Incorrect. The combined fiscal deficit of central and state governments is expected to reach 7.5% of GDP, not 10%.
Therefore, the correct answer is Option B.
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Community Answer
Consider the following statements:1. The 2024-25 Union Budget project...
Overview of Fiscal Policy Statements
The statements provided relate to the fiscal policy and budget projections of the Union Government for 2024-25 and beyond. Let’s analyze each statement for correctness.
Statement 1: Reduction of Fiscal Deficit
- The 2024-25 Union Budget indeed projects a reduction of the fiscal deficit to 4.5% of GDP by 2025-26. This is aligned with the government's commitment to fiscal consolidation.
Statement 2: Declining Path of Central Government Debt
- The government has indicated its aim to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27. This is consistent with long-term fiscal sustainability goals, making the statement correct.
Statement 3: Combined Fiscal Deficit of Central and State Governments
- The assertion that the combined fiscal deficit of the central and state governments is expected to reach 10% of GDP for several years is a projection that may not have a clear basis in the latest budget documents. Typically, such projections vary based on economic conditions and fiscal policies, and while deficits may fluctuate, the specific level of 10% for several years lacks substantiation in the current fiscal strategy.
Conclusion
Based on the analysis:
- Statements 1 and 2 are correct.
- Statement 3 is not substantiated by recent budgetary frameworks.
Therefore, the correct answer is option B: 1 and 2 Only.
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Consider the following statements:1. The 2024-25 Union Budget projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.2. The government aims to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.3. The combined fiscal deficit of central and state governments is expected to reach 10% of GDP for several years.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements:1. The 2024-25 Union Budget projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.2. The government aims to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.3. The combined fiscal deficit of central and state governments is expected to reach 10% of GDP for several years.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:1. The 2024-25 Union Budget projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.2. The government aims to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.3. The combined fiscal deficit of central and state governments is expected to reach 10% of GDP for several years.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:1. The 2024-25 Union Budget projected a reduction of fiscal deficit to 4.5% of GDP by 2025-26.2. The government aims to ensure a declining path for central government debt as a percentage of GDP starting from 2026-27.3. The combined fiscal deficit of central and state governments is expected to reach 10% of GDP for several years.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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