Civil Services UPSC CAPF (Assistant Commandants) Test Series 2025 Current Affairs Business and Economy
Consider the following statements regarding fiscal consolidation:
Statement I: Fiscal consolidation involves reducing fiscal deficits and public debt by improving revenue generation and rationalizing government expenditures.
Statement II: A reduction in fiscal deficit invariably leads to growth in economic growth.
Which one of the following is correct in respect of the above statements?
1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.