Question

In the 1980s soviet union’s government deficit was covered with the help of a) direct taxes b) indirecttaxes 3 c) oil revenues d) alloftheabove e) none of the above

Answer 1

The Soviet Union's government deficit in the 1980s was covered by a combination of tax revenues and the sale of oil, with the latter being a significant source of income.

Step-by-step explanation:

In the 1980s, the Soviet Union's government deficit was covered with the help of direct taxes, indirect taxes, and oil revenues. Revenues from the export of natural resources, including oil, were particularly crucial. The Soviet government relied on these oil revenues as global energy prices were influential to their economy.

Not only did this sector finance a considerable share of the budget, but it also influenced the country's ability to manage its fiscal deficits.