← All questionsGS3 · 2013 · Indian Economy ·Tax Expenditure
QUESTION 3
GS3
10 marks

What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budgetary policies of government.

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7 min
200 words
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What the examiner wants

Discuss the exact proposition in the PYQ — “What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budgetary policies of government.” — using concept/chronology or mechanism, evidence on both sides where relevant, and a conclusion that answers the directive rather than merely describing Tax Expenditure.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1For the prompt cue ‘What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budgetary polici’, directly answer: What is the meaning of the term ‘tax expenditure’?≈45 words
  2. 2For the prompt cue ‘What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budgetary polici’, directly answer: Taking housing sector as an example, discuss how it influences budgetary policies of government≈45 words
  3. 3For the prompt cue ‘What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influen’, add one verified official-source anchor and a limitation/counterpoint specific to Tax Expenditure≈45 words

Open in about 30 words and close in about 30.

Answer plan

Define/contextualise Tax ExpenditureExplain mechanism/chronologyQuestion-specific evidence/examplesImplicationsConcise conclusion

Where marks usually go

  • For the prompt cue ‘What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budget’, avoid a generic note on Tax Expenditure; answer the actual wording/directive and the Tax Expenditure proposition
  • For the prompt cue ‘What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences budget’, do not add examples around Tax Expenditure unless they prove, qualify or rebut the proposition asked

Value addition

  • Mechanism flowchart: policy/input → transmission channel → outcome → risk
    → Draw it in the body, next to the point it supports.

Official source anchors

These are authoritative sources selected for this exact PYQ. Where a card is an official-domain anchor rather than a fact-level citation, verify the precise provision, definition or data point on the linked source before using it.