IAS Pre Exam 2015 Current Affairs Practice Test-3


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

April 2015                                                                                 Ajit Kumar (Wisdom IAS, New Delhi)
 
                                  Read Union  Budget 2015-2016 through MCQ- Set-1
(1) Which of the following three Key achievements of the Union government has been claimed in the Budget 2015-2016?
(I)  Jan Dhan, Aadhar and Mobile (JAM) - for direct benefit transfer
(II)  Transparent Coal Block auctions to augment resources of the States
(III)  Swachh Bharat is , a programme to improve hygiene and cleanliness
(IV) Financial Inclusion - 12.5 crores families financially mainstreamed in 100 days 
Select the answer from the codes given below-
(a)    I,II,III                        (b) II,III,IV
(c) I, III,IV                      (d) None of the above
Ans.(b)
Expl: According to the budget the game changing reforms on the anvil are Goods and Service Tax (GST) and  Jan Dhan, Aadhar and Mobile (JAM) - for direct benefit transfer.
(2) The year 2022 will be the Amrut Mahotsav. Which of the following are aims of the Mahotsav” ?
(I) ‘Housing for all’ by 2022
(II) Electrification, by 2020, of the remaining 20,000 villages in the  country
(III) Work to all members of a family
(IV) Connecting each of the 1,78,000 unconnected habitations by all weather roads
Select the answer from the codes given below-
(a)    I,II,III                        (b) II,II,IV
(c) I, III,IV                      (d) All of the above
Ans.(b)
Expl: At least one member from each family should have access to the means for livelihood and, employment or economic opportunity, to improve his or her lot. 
(3) According to the budget the journey for fiscal deficit target of 3% will be achieved in –
(a) 2 years
(b) 3 years
(c) 4 years
(d) No timeframe has been set
Ans. (b) Expl:The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. 
The gross fiscal deficit (GFD) is the excess of total expenditure including loans net of recovery over revenue receipts (including external grants) and non-debt capital receipts. The net fiscal deficit is the gross fiscal deficit less net lending of the Central government. 
Generally fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure. Capital expenditure is incurred to create long-term assets such as factories, buildings and other development. 
A deficit is usually financed through borrowing from either the central bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds. 
(4) Good governance plan of the government include -
(a) Need to cut subsidy leakages
 (b) rationalizing subsidies.
 (c) Direct Transfer of Benefits to be extended further
(d) All of the above
Ans. (d) Expl:  The direct transfer of benefits, started mostly in scholarship schemes, will be further expanded with a view to increasing the number of beneficiaries from the present 1 crore to 10.3 crore.  Similarly, Rs. 6,335 crore have so far been transferred directly, as LPG subsidy to 11.5 crore LPG consumers. 
(5) According to the Budget 2015-16 Major Challenges Ahead include -
 (I) Reducing stress on agricultural incomes
(II) increasing investment in infrastructure. 
(III)  increasing growth rate in manufacturing and manufacturing exports
(IV) maintaining fiscal discipline.
Select the answer from the codes given below-
(a)    I,II,III                        (b) II,II,IV
(c) I, III,IV                      (d) All of the above
Ans.(d)
Expl: Another problem identified is the need for fiscal discipline in spite of rising demands for public investment. In keeping with the true spirit of co-operative federalism, government has devolved a 42% share of the divisible pool of taxes to States. The devolution to the States would be of the order of Rs.5.24 lakh crore in 2015-16 as against the devolution of Rs.3.38 lakh crore as per revised estimates of 2014-15.  Another Rs.3.04 lakh crore would be transferred by way of grants and plan transfers.  Thus, total transfer to the States will be about 62% of the total tax receipts of the country.
(6) According to budget document 2015-16 the economic growth in 2014-15 at 11.5%, was lower in nominal terms by about 2%, due to lower inflation. What do you mean by economic growth in nominal terms ( nominal GDP)?
(I) A gross domestic product (GDP) figure that has not been adjusted for inflation.
(II) A gross domestic product (GDP) figure that has  been adjusted for inflation.
(III) A gross domestic product (GDP) figure that has  been adjusted for depreciation.
Select the answer from the codes given below-
(a)    I only                        (b) II only
(c) I, II, III                      (d) None  of the above
Ans.(a)
Expl: Nominal GDP measures the value of all the goods and services produced expressed in current prices. If inflation is positive, which it generally is, then the real interest rate is lower than the nominal interest rate. 
(7) The Fonance Act 2015 amends the Fiscal Responsibility and Budget Management (FRBM) Act 2003. Which of the following are the these amendments?
(I) The effective revenue deficit which had to be eliminated by March 2015 will now need to be eliminated only after 3 years i.e., by March 2018.
(II) The 3% target of fiscal deficit to be achieved by 2016-17 has now been shifted by one more year to the end of 2017-18.
(III) The concept of “Effective Revenue Deficit”  has been introduced
(IV) The concept of  “Medium Term Expenditure Framework” statement has been introduced
Select the answer from the codes given below-
(a)    I and II                       (b) I and III
(c) I, II and III                      (d) All of the above
Ans.(a)
Expl: On the recommendation of the 13th Finance Commission the Union Budget 2011-12 introduced the concept of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” statement are the two important features of amendment to FRBM Act in the direction of expenditure reforms.  Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. This will help in reducing consumptive component of revenue deficit and create space for increased capital spending. Effective revenue deficit has now become a new fiscal parameter. “Medium-term Expenditure Framework” statement will set forth a three-year rolling target for expenditure indicators.
(8) The objective of the Fiscal Responsibility and Budget Management (FRBM) Act 2003 are to -
(I) ensure inter-generational equity in fiscal management
(II) long run macroeconomic stability
 (III) better coordination between fiscal and monetary policy  
(IV) transparency in fiscal operation of the Government
Select the answer from the codes given below-
(a)    I and II                       (b) I and III
(c) I, II and III                      (d) All of the above
Ans.(d)
Expl: Under Fiscal Responsibility and Budget Management (FRBM) Act 2003 the Government notified FRBM rules in July 2004 to specify the annual reduction targets for fiscal indicators. FRBM Act provides a legal institutional framework for fiscal consolidation. It is now mandatory for the Central government to take measures to reduce fiscal deficit, to eliminate revenue deficit and to generate revenue surplus in the subsequent years. The Act binds not only the present government but also the future Government to adhere to the path of fiscal consolidation. The Government can move away from the path of fiscal consolidation only in case of natural calamity, national security and other exceptional grounds which Central Government may specify.
Further, the Act prohibits borrowing by the government from the Reserve Bank of India, thereby, making monetary policy independent of fiscal policy. The Act bans the purchase of primary issues of the Central Government securities by the RBI after 2006, preventing monetization of government deficit. The Act also requires the government to lay before the parliament three policy statements in each financial year namely Medium Term Fiscal Policy Statement; Fiscal Policy Strategy Statement and Macroeconomic Framework Policy Statement.
AGRICULTURE
(9) A new  scheme “Paramparagat Krishi Vikas Yojana” is related to –
(a) Irrigation
(b) Piciculture
(c) Organic farming
(d) Plantation on orchards
Ans. (c) Expl: The NDA government is committed to promote Organic Farming that improves soil health and leads to better quality crops. From the 2015-16 financial year, Paramparagat Krishi Vikas Yojana’ a new scheme to develop organic clusters and make available chemical free inputs to farmers will be implemented.
(10) The Budget of 2015-26 launches Rashtriya Gokul Mission, a project under the National Program for Bovine Breeding and Dairy Development with the objective of conserving and developing indigenous breeds to enhance their productivity  through –
(I) professional farm management
(III) superior nutrition
(III) upgradation of indigenous bovine germplasm
(IV) promotion of crossbreeding of Indian and foreign bovine animals
Select the answer from the codes given below-
(a)    I and II                       (b) I and III
(c) I, II and III                      (d) All of the above
Ans.(c)
Expl: India has the largest bovine population in the world and ranks first among the world’s milk producing Nations since 1998. Milk production peaked at about 14 crore tonnes in 2013-14. 79% of the 30 Crore bovines in India are indigenous represented by 37 well recognized indigenous breeds of cattle and 13 buffalo breeds. Indigenous bovines are robust and resilient and are particularly suited to the climate and environment of their respective breeding tracts. 
(11) Pradhanmantri Gram Sinchai Yojana is aimed at-
 irrigating the field of every farmer (Har Khet Ko Pani)
mproving water use efficiently to provide ‘Per Drop More Crop’.
Select the answer from the codes given below-
(a)    I only                        (b) II only
(c) I and II                     (d) None  of the above
Ans.(c)
Expl: There is 14 crore hectares of agricultural land in India, of which only 44 per cent in under irrigation.



Wednesday, 15th Apr 2015, 03:39:51 AM

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