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 assumption which is implicit in the facts stated in the above paragraph ?

Options

A. people in India may not be able to pay more for petroleum products.
B. Many people in India are rich enough to buy petroleum products at market cost.
C. Govrenment may not be able to create more infrastructural facilities if the present level of subsidy continues for a longer time.
D. Government of India has sought assistance from international financial organizations for its infrasturctural projects

Answer

C

Explanation

The government must reduce expenditure on subsidies so that to create more infrastructural facilities otherwise present level of subsidy cannot continue for a long time