Discussion
Fiscal reform measures in India included
I. Increasing Tax-GDP ratio
II. Expenditure Management
III. Managing revenue deficit and fiscal deficit
IV. Increasing liquidity in the economy
Find the correct combination from the given codes :
Answer: A
The fiscal reform measures in India included an increase in the tax-GDP ratio (I), expenditure management (II) and the control of the revenue deficit and fiscal deficit (III). So option A is right.
Increasing liquidity in the economy (IV) is a matter of monetary policy and is not a fiscal reform measure, so options B, C and D, which include it, are wrong.
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