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 an inference which can be made from the facts stated in the above paragraph ?

Options

A. India's fiscal deficit is negligible in comparison to other emerging economies in the world.
B. Subsidy on food and fertilizers are essential for growth of Indian economy.
C. Reform in financial sector will weakemn India's position in the international arean.
D. Gradual withdrawal of subsidy is essential for effectively managing fiscal deficit in India.

Answer

D

Explanation

Consider the following lines of the passage:
Consider the following lines of the passage:
"The government must cut expenditure on subsidies to create more fiscal space for investments in both physical and social infrastructure".