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Question 1 of 5
1. Question
1. The Fourteenth Finance Commission (FFC) has proposed a new horizontal formula for the distribution of the divisible pool among the States. The new criterion includes
1. Population as per 2011 Census
2. Forest Cover
3. Fiscal discipline of the states
Select the correct answer using the codes below.Correct
Explanation:
Fiscal discipline was a criterion used by earlier Finance Commissions. It has been discontinued by the 14th FC. So, statement 3 is wrong. The finance Commission is responsible for distribution of resources (taxes) between the Centre and the states (vertical distribution), and between the states (horizontal distribution). It does so using an objective formula which contains several factors such as backwardness of a state; SC, ST population etc. As per the new formula, there are changes both in the variables included/excluded as well as the weights assigned to them.
Relative to the Thirteenth Finance Commission, the FFC has incorporated two new variables: 2011 population and forest cover; and excluded the variable relating to fiscal discipline.Incorrect
Explanation:
Fiscal discipline was a criterion used by earlier Finance Commissions. It has been discontinued by the 14th FC. So, statement 3 is wrong. The finance Commission is responsible for distribution of resources (taxes) between the Centre and the states (vertical distribution), and between the states (horizontal distribution). It does so using an objective formula which contains several factors such as backwardness of a state; SC, ST population etc. As per the new formula, there are changes both in the variables included/excluded as well as the weights assigned to them.
Relative to the Thirteenth Finance Commission, the FFC has incorporated two new variables: 2011 population and forest cover; and excluded the variable relating to fiscal discipline. -
Question 2 of 5
2. Question
2. Which one of the following Five Year Plans recognized human development as the core of all development efforts?
Correct
Explanation:
The theme of the eighth Five Year Plan (1992- 1997) was “Plan with a human face”.Incorrect
Explanation:
The theme of the eighth Five Year Plan (1992- 1997) was “Plan with a human face”. -
Question 3 of 5
3. Question
3. Which of the following are among the non-plan expenditures of the Government of India?
1. Defence expenditure
2. Subsidies
3. All expenditures linked with the previous plan periods
4. Interest paymentCorrect
Explanation:
Non-plan expenditures include non-developmental expenditure (interest payment, subsidies, defence expenditure, civil administration), developmental expenditure and expenditure incurred on projects which remained unfinished in the earlier plans.Incorrect
Explanation:
Non-plan expenditures include non-developmental expenditure (interest payment, subsidies, defence expenditure, civil administration), developmental expenditure and expenditure incurred on projects which remained unfinished in the earlier plans. -
Question 4 of 5
4. Question
4. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R).
Assertion (A) : An important policy instrument of economic liberalization is reduction in import duties on capital goods.
Reason (R) : Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct?Correct
Explanation:
Both statements are correct and explain one of the instruments to liberalise the Indian economyIncorrect
Explanation:
Both statements are correct and explain one of the instruments to liberalise the Indian economy -
Question 5 of 5
5. Question
5. Consider the following statements :
Most international agencies which find Development Programme in India on intergovernmental bilateral agreements, mainly provide:
1. Technical assistance
2. Soft loans which are required to be paid back with interest
3. Grants, not required to be paid back
4. Food assistance to be paid backCorrect
Explanation:
A soft loan is a loan with a below-market rate of interest. This is also known as soft financing. Sometimes soft loans include other concessions to borrowers, such as long repayment periods or interest holidays. Soft loans are usually provided by to projects which are socially worthwhile. The World Bank and other development institutions provide soft loans to developing countries. Loans to Delhi metro by Japan is a soft loan.Incorrect
Explanation:
A soft loan is a loan with a below-market rate of interest. This is also known as soft financing. Sometimes soft loans include other concessions to borrowers, such as long repayment periods or interest holidays. Soft loans are usually provided by to projects which are socially worthwhile. The World Bank and other development institutions provide soft loans to developing countries. Loans to Delhi metro by Japan is a soft loan.