Home PYQs UPPSC UPPSC MCQs Prelims 1996 (GS Paper I)

Question

In the Union Budget of 1996-97, the target level of fiscal deficit is:

  1. 5.0 per cent of GDP
  2. 5.9 per cent GDP
  3. 6.8 per cent of GDP
  4. 7.5 per cent of GDP

Answer:

Option A: 5.0 per cent of GDP

Detailed Solution:

The correct answer is “5.0 per cent of GDP”.

The Union Budget of 1996-97 aimed to reduce the fiscal deficit to 5% of GDP from 5.8% in the previous year. This was a significant step towards fiscal consolidation.