SarkariPYQ

SSC CHSL 2022 PYQ — Question 46

SSC CHSL - 26 May 2022 - Shift 1 • General Awareness • Q46

Back to paper

Lack of financial discipline by the government can lead to ______________.
(A) excess expenditure
(B) inflation
 

Show answer & explanation

Correct answer: C

Explanation

The correct answer is option 3 i.e. A and B.

  • The lack of fiscal discipline generally stems from the injudicious use of discretion in formulating and implementing budgetary policies.
  • Maintaining fiscal discipline is essential to maintaining macroeconomic stability, reducing vulnerabilities, and improving aggregate economic performance.
  • This is especially important if countries are to successfully meet the challenges, and reap the benefits, of economic and financial globalization.