Question

A country aims to improve its fiscal discipline. Which measure would directly contribute to this goal?

• A. Increasing government spending on social welfare programs to boost the economy.
• B. Implementing tax cuts for corporations to stimulate investment.
• C. Borrowing heavily from international financial institutions to fund infrastructure projects.
• D. Enforcing strict expenditure controls and a sound financial management system.

Answer 1

Answer:

D. Enforcing strict expenditure controls and a sound financial management system.

• Fiscal discipline involves prudent management of a government's finances.

• Strict expenditure controls prevent wasteful spending and help keep the budget in check.