Q. Consider the following:
1.Narrow Tax Base
2.High Subsidies
3.High Tax-to-GDP Ratio
Which of the above is/are the reason(s) behind high fiscal deficit in India?

[A] 2 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1 only

Answer: B

Reasons behind high fiscal deficit are – narrow tax base, high subsidies, low tax-to GDP ratio, Off-budget Financing, high Debt-to-GDP Ratio, etc.

Source: ForumIAS