How does a reduction in the benchmark interest rate primarily impact a government’s fiscal budget?

By Rabia Anum

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Published 19 Sep 2026

A. It increases net tax collection

B. It reduces sovereign debt servicing costs

C. It narrows the national trade deficit

D. It stabilizes the consumer price index

📚 Topics: Pakistan Current Affairs

🎯 Exams: CSS GEN PMS UK_CS US_COMP

🏷️ Tags: Fiscal Policy Macroeconomics Public Debt

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