SELECT * FROM question_mgmt as q WHERE id=5440 AND status=1 SELECT id,question_no,question,chapter FROM question_mgmt as q WHERE courseId=3 AND subId=59 AND chapterId=606 and ex_no='1' AND status=1 ORDER BY CAST(question_no AS UNSIGNED) CBSE Free NCERT Solution of 12th macro-economics Government Budget and Economy discuss the issue of deficit reduction

Question:

Discuss the issue of deficit reduction.

Answer:

The ways of government budget deficit reduction are the following:

(i) Decreasing Expenditure

a) The expenditure of government should be decreased by making government activities more planned and effective.
b) The government can encourage private sector to undertake capital projects.

(ii) Increasing Revenue

a) Higher taxes imply higher income earned by the government. Also, new taxes may add to the revenues of the government.
b) The government can sell shares of Public Sector Undertakings (PSU disinvestment) to increase its revenue.


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