Economy Prelims Question

Fiscal consolidation basically means reduction in fiscal deficit and, thus, improvement in the fiscal health of the economy.
Introduction of GST leads to increased tax revenue as a result of increased tax base and better tax compliance, thereby reducing fiscal deficit.
Disinvestment in Central Public Sector Enterprises (CPSEs) will lead to non-debt creating revenue for the government and, thus, reduces fiscal deficit.
Introduction of One Rank One Pension (OROP), in 2016, enabled all officers of the same rank and same length of service to get same amount of pension. Till then the pension amount was linked to last drawn salary of the officer. Thus an officer who retired in 1990 serving for say 25 years drew less pension than an officer of the same rank who also served for 25 years and retired in say 2014. Thus, introduction of OROP amounts to additional expenditure for the government and, thus, does not lead to fiscal consolidation.

Fiscal consolidation basically means reduction in fiscal deficit and, thus, improvement in the fiscal health of the economy.
Introduction of GST leads to increased tax revenue as a result of increased tax base and better tax compliance, thereby reducing fiscal deficit.
Disinvestment in Central Public Sector Enterprises (CPSEs) will lead to non-debt creating revenue for the government and, thus, reduces fiscal deficit.
Introduction of One Rank One Pension (OROP), in 2016, enabled all officers of the same rank and same length of service to get same amount of pension. Till then the pension amount was linked to last drawn salary of the officer. Thus an officer who retired in 1990 serving for say 25 years drew less pension than an officer of the same rank who also served for 25 years and retired in say 2014. Thus, introduction of OROP amounts to additional expenditure for the government and, thus, does not lead to fiscal consolidation.

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