Question

Which of the following statements is correct about Union Budget 2014?

• A. Current Account Deficit was around 5% of GDP.
• B. Current Account Deficit was around 6.2% of GDP.
• C. Current Account Deficit was around 3.5% of GDP.
• D. Current Account Deficit was around 1.7% of GDP.
• E. Current Account Deficit was around 0.5% of GDP.

Hint:

Remember: Union Budget 2014 highlighted the improvement in India’s Current Account Deficit (CAD), which fell sharply to 1.7% of GDP from dangerously high levels of the previous year.

Answer 1

The Correct Option is D

Step 1: Background of Union Budget 2014.
The Union Budget 2014, presented by Finance Minister Arun Jaitley, was the first budget of the new government. One of its major highlights was the improvement in India's Current Account Deficit (CAD). Step 2: Understanding CAD.
The Current Account Deficit (CAD) measures the difference between the value of imports of goods, services, and transfers and the value of exports. A lower CAD means better external sector stability. Step 3: Data check.
In 2012–13, India’s CAD was very high (around 4.7% of GDP). But by 2013–14, due to measures such as restrictions on gold imports and strong capital inflows, CAD fell drastically to about 1.7% of GDP. Step 4: Verify with options.
Only option (D) matches the factual figure: CAD $\approx$ 1.7% of GDP. \[ \boxed{\text{CAD was around 1.7% of GDP in 2014.}} \]