After adoption FRLs from which of the following states of India largest reductions in fiscal deficits came from?
A. Maharashtra
B. Odisha
C. Punjab
D. All of the above
Answer:D
After adoption FRLs from which of the following states of India largest reductions in fiscal deficits came from?
A. Maharashtra B. Odisha C. Punjab D. All of the above
Explanation: The states essentially achieved the fiscal targets right away, years in advance of the target year of FY 2008 (extended to 2009/10 due to the financial crisis). Within the first two years, states on average lowered their deficits to target levels -- 3 percent for fiscal deficit and 0 for revenue deficits – while the primary balance shifted into surplus. The reductions in deficits mask considerable variation across states. The largest reductions in fiscal deficits came from states like Orissa, Punjab, Madhya Pradesh and Maharashtra which lowered their deficit by more than 3 percentage points. These states also showed some of the largest reductions in revenue deficit.