2020 · Q4
Which one of the following statements about Indian economy during 2019-20 is not correct?
General KnowledgeIndian Economy
- AThere has been deceleration in growth rate.
- BThere has been sluggish growth in tax revenue relative to the Budget Estimates.
- CFiscal deficit as percentage of GDP has been as per the Budget Estimates.
- DThe non-tax revenue registered & consi-derably higher growth.
Explanation
GDP growth decelerated to 4.2% in 2019-20 from 6.1% in 2018-19, so statement A is correct. Tax revenue growth was sluggish relative to the Budget Estimates, so statement B is correct. Non-tax revenue registered considerably higher growth, buoyed by the RBI's record surplus transfer, so statement D is correct. The fiscal deficit, however, came in at 3.8% of GDP against the Budget Estimate of 3.3%, so it was not 'as per the Budget Estimates'. Statement C is the one that is not correct.