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Question framed from Indian
Economy-Ramesh Singh
Q.14 Which of the following
regarding Tax Expenditures are correct ?
1) These are used instead of direct
spending to deliver Government subsidy to encourage a desired activity
2) They always reduces tax revenue
that results into a higher level of revenue deficit
Codes:
A) Only 1
B) Only 2
C) Both are correct
D) Both are incorrect
Ans. C
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