Which among the following would be advisable to curb the revenue deficit?
1. Cutting expenditures on subsidy
2. Cutting social expenditures
3. Imposing import controls
Choose the correct option from the codes given below:

Answer: [A] Only 1 & 2

The government can curb the revenue deficit either by increasing revenue receipts or by decreasing revenue expenditure. Revenue expenditure can but reduced by a cut in social expenditures and subsidies. Since both ways have their own economic and political ramifications, government could never achieve what it was supposed to achieve as per the FRBM act.

This question is a part of GKToday's Integrated IAS General Studies Module