Which of the following fiscal measures, while potentially providing short-term relief, is

A) Broadening the tax base to include previously untaxed sectors and high-income earners.

B) Implementing expenditure rationalization by reducing non-development and unproductive government spending.

C) Heavily relying on short-term domestic and international borrowing to finance the deficit.

D) Enhancing the efficiency and profitability of State-Owned Enterprises (SOEs) through privatization or comprehensive restructuring.

Explanation

While borrowing can provide temporary financing for a budget deficit, heavy reliance on it, especially short-term borrowing, merely postpones the problem and accumulates debt, without addressing the underlying structural issues of inadequate revenue generation or excessive expenditure. Measures like broadening the tax base, controlling expenditures, and reforming SOEs are fundamental long-term solutions.

Practice More Pakistan Affairs Questions

Which of the following fiscal measures, while potentially providing short-term relief, is generally considered *least effective* in addressing Pakistan's persistent structural budget deficit in the long run without accompanying fundamental reforms?

Explanation

Which of the following fiscal measures, while potentially providing short-term relief, is generally considered least effective in addressing Pakistan's persistent structural budget deficit in the long run without accompanying fundamental reforms?