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  9. Q5

HPPSC HPAS 2019 · Question 5 of 100

Golden rule of fiscal policy in India is:

Indian Economy

  1. ABorrowing only for current expenditure
  2. BBorrowing only for public investmentCorrect
  3. CBorrowing only for repayment our
  4. DBorrowing for budget expenditure

Answer: B. Borrowing only for public investment

Explanation

The golden rule of fiscal policy holds that government should borrow only to invest, not to fund current spending.

Source: HPPSC HPAS (Pre) 2019 GS Paper-I (theexampillar.com official answer key)

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