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Why is privatisation considered beneficial for government finances?

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Question

Why is privatisation considered beneficial for government finances?

Options

  • It earns money through sale of assets

  • It increases government spending

  • It reduces income from taxes

  • It increases government debt

MCQ
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Solution

It earns money through sale of assets

Explanation:

Privatisation can generate revenue for the government through the sale of companies and assets.

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