Public finance: How can non-tax revenue be increased? Focus on improving performance of government-owned commercial entities and services. Choose the correct option.
General Knowledge
Indian Economy
Difficulty: Easy
Choose an option
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ABy improving the efficiency and profitability of public sector enterprises
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BBy raising income-tax rates
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CBy increasing customs duties
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DBy cutting capital expenditure
Answer
Correct Answer: By improving the efficiency and profitability of public sector enterprises
Explanation
Concept
- Non-tax revenue includes dividends/surplus from PSUs, user charges, fees, interest, spectrum/asset receipts, etc.
ReasoningStrengthening PSU performance directly lifts dividends/surpluses and other non-tax receipts without altering tax rates.
Final AnswerBy improving the efficiency and profitability of public sector enterprises