CA Foundation P4 · Chapter 10 · Question 3 of 15
Within the 1991 reform package, which of the following is a 'stabilisation' measure rather than a 'structural reform' measure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Reducing the fiscal deficit to control inflation and the balance of payments deficit
Explanation
Stabilisation measures are short-term demand-management steps to correct macro imbalances such as high inflation, fiscal deficit and BoP deficit. Structural reforms are longer-term supply-side changes aimed at improving efficiency and competitiveness, such as de-licensing, trade and FDI liberalisation and financial sector reform.
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