UPSC Prelims 2017 – Question 94

Q94. 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?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

The correct answer is Neither 1 nor 2. 

• Tax to GDP 

• Decade 2001-2011: Consistent decline following the subprime mortgage crisis (2007-2010) and then recovery. 
• Decades 2006-2016: Except for the 2008-2010 recession, there has been steady growth. Hence, statement 1 is incorrect.​​ 

• Fiscal Deficit to GDP 

• Decade 2001-2011: Decline between 2009-11. 
• Decade 2006-2016: Steadily declining from 2011 to 2016. Hence statement 2 is also incorrect. 

For UPSC Prelims Resources, Click here

For Daily Updates and Study Material:

Join our Telegram Channel – Edukemy for IAS

• 1. Learn through Videos – here
• 2. Be Exam Ready by Practicing Daily MCQs – here
• 3. Daily Newsletter – Get all your Current Affairs Covered – here
• 4. Mains Answer Writing Practice – here

Visit our YouTube Channel – here