Discussion
Assertion (A) : During the financial year 2011-12, the Central Government is not likely to achieve the target of raising ₹ 40,000 crores through disinvestment policy.
Reason (R) : Policy of increased public borrowings to bridge the fiscal gap is justified.
In the context of the above two statements, which one is correct from the given ?
Codes :
Answer: A
Both statements are correct, and the reason is taken as the explanation. In 2011-12 the Central Government was not likely to raise the target of Rs. 40,000 crore through disinvestment, since market conditions were poor. A policy of more public borrowing to bridge the fiscal gap then follows as the way to fill the shortfall.
Option A is the keyed one. Option B denies the link, option C calls the reason incorrect, and option D calls the assertion incorrect, which is not in line with the facts for that year.
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