There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty Select the correct answer using the code given below.

Reducing revenue expenditure and rationalizing subsidies are effective measures because they lower the government's total spending, directly narrowing the fiscal gap. Conversely, introducing new welfare schemes increases expenditure and reducing import duties lowers tax revenue, both of which would widen the deficit rather than reduce it. This question tests the core concept of **Fiscal Consolidation**, which focuses on policies aimed at reducing government deficits and debt accumulation.