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?

Question

YESPYQ · Accepted Answer

Correct answer: Neither 1 nor 2. Statement 1 is incorrect : While there was some in- crease in tax revenue from 2014 to 2018, the growth was not always steady and was subject to fluctuations, especially due to changes in the economy and tax reforms like GST in 2017. There- fore, there was an overall increase, but it wasn’t a steady rise. Statement 2 is incorrect : Fiscal deficit as a percent of GDP of India has not steadily increased in the last decade. Fig: Tax Revenue as a percentage of GDP. SUPER HINT Key directive: “steadily increased” This is an absolute qualifier — and UPSC loves to trap you with words like: “always”, “never”, “steadily”, “continuously”, “entirely”, etc. So both statements become highly suspect and likely false. 233

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?

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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?

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