2013 · Q75
Statement I For the three years after 2007-08 Annual Budget in India, there was practically no increase in tax/GDP ratio. Statement II At the same time, government expenditure jumped noticeably.
indian-polity-economyeconomy-fundamentals
- ABoth the statements are individually true and Statement II is the correct explanation of Statement I
- BBoth the statements are individually true but Statement II is not the correct explanation of Statement I
- CStatement I is true but Statement II is false
- DStatement I is false but Statement II is true
Explanation
The tax/GDP ratio stagnated after the 2007-08 Budget while government expenditure jumped, but the expenditure jump does not explain the tax-ratio stagnation - both true, II is not the explanation of I.