UPSC Prelims 2017 Question:

Consider the following statements

1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 
2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.
   
   

 Which of the statements given above is/are correct?

Explanation: 

• India Tax revenue as percentage of GDP reached an all-time high of 10.8 % in Mar 2015. However, it had witnessed a fall during 2008 to 2010 after the subprime crisis in the United States of America. So, statement 1 is not correct.
  
  

• Fiscal Deficit as a percentage of GDP has witnessed a decline from 2011 to 2016. So, statement 2 is not correct.
  
  

Therefore, option (4) is the correct answer.

Subject: Economics | Public Finance