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SSC CHSL 2024 PYQ — Question 41

SSC CHSL - 11 July 2024 - Shift 4 • General Awareness • Q41

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Which of the following measures can be adopted by the government to reduce revenue deficit?

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Correct answer: D

Explanation

The correct answer is option 4 i.e. Tax reforms.

Tax reforms can be one of the measures adopted by the government to reduce the revenue deficit. By improving tax collection efficiency, broadening the tax base, and introducing progressive tax policies, the government can increase its revenue, thereby reducing the revenue deficit.

Other potential measures could include:

  1. Rationalizing government expenditure: Cutting down on non-essential spending or improving efficiency in government programs.

  2. Privatization or disinvestment: Selling government stakes in public sector enterprises to generate revenue.

  3. Boosting economic growth: Encouraging investment and industrial development can increase tax revenues in the long run.

Tax reforms, specifically improving the tax system and increasing compliance, play a crucial role in reducing the revenue deficit.