Recently (in year 2010) International Monetary Fund has suggested that India should begin fiscal consolidation with the next budget as the deficit of the country has entered into the double digits. Which among the following reasons best justifies the increased fiscal deficit of the country?
The fiscal deficit of the country has increased mainly because of the expenditures of the government on NREGA and other rural employment generation programmes
The fiscal deficit of the country has largely increased on account of Global Financial Recession as the fiscal deficit of Most countries widens during a recession period
The fiscal deficit of the country has largely increased due to the stimulus measures taken by the government to revive the economy during a recession hit times.
The Fiscal Deficit is widening because of India's exports decreasing for last few years and import increasing mainly of food items
India has always been advised by IMF regarding the fiscal deficit , however India has no such serious problems
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