The centre reportedly wants to continue providing subsidy to consumers for cooking gas and kerosene for five more years. This consumers of cooking gas and kersonsene for five more years. This is not good news from the point of view of reining in the fisnal deficit . Mouting subventing for subidies means diversion of saving by the goverment form investment to consumptions, raising the cost of capital in the process. The goverment must cut expenditure on subsidies to create more fiscal space for investments in both physical and social infrastructure.It should outline a plan for comprehensive reform in major subsidies including petroleum, food and fertilizer and set goal posts.
which of the following is a conclusion which caln be draw form the facts stated in the above paragraph ?

Options

A. Subsidy provided by the government under various heads to the citizen increases the cost of capital
B. Government is unable to withdraw subsidies provided to various items.
C. Govrenment subsidly on kersoene is purely a political decisio.
D. Govt. does not have enough resources to continue providing subsidly on pertrolem products.

Answer

A

Explanation

Consider the following line of the passage:
''Mounting subventions for subsidies means diversion of savings by the government from investment of consumption, raising the coast of Capital in the process".