which of the following measures did not form a part of fiscal correction in 1991?
Answers
Answer:
Raising tax rates is the right answer
Answer:
Increasing tax collection did not form a part of fiscal correction in 1991.
Explanation:
Tax revisions implemented after 1991–1992 made an effort to greatly simplify tax rates. In terms of personal income tax, there are now only three brackets. The recommended percentages in 1992–1993 were 20%, 30%, and 40%. Reduced fertiliser subsidies, the elimination of sugar subsidies, and the disinvestment of a portion of the government's equity holdings in certain public sector companies were some of the significant policy initiatives for addressing the fiscal imbalance that was included in the budget for the fiscal year 1991–1992.
What actions have been taken since 1991 to streamline and enhance the tax system?
- A decline in the rate and a reduction in a spread
- Avoiding double taxes is
- Reducing the disparities in corporation tax rates between domestic and international businesses
- Making capital gains tax more sensible
- The wealth tax was rationalised
- A decrease in tariffs
Thus, both double-digit inflation and a significant current account deficit were caused by a sizable budget deficit.