Which of the following measures can be adopted by the government to reduce revenue deficit?

Key Points

• Tax reforms are crucial measures that can help the government reduce revenue deficits.
• By implementing effective tax reforms, the government can increase its revenue without necessarily increasing tax rates.
• Tax reforms can include broadening the tax base, improving tax compliance, and reducing tax evasion.
• Improved tax administration and the introduction of modern technology in tax collection processes can also contribute significantly to reducing revenue deficits.

Additional Information

• Offering freebies and increasing subsidies may lead to higher government expenditure, potentially worsening the revenue deficit.
• Increasing money supply can lead to inflationary pressures and is not a sustainable solution for revenue deficits.
• Effective tax reforms can make the tax system more efficient and equitable, thus boosting government revenue without imposing undue burdens on taxpayers.
• Governments around the world have successfully reduced revenue deficits through comprehensive tax reforms.