All questions of Government Budget and the Economy for Commerce Exam

The revenue budget consists of revenue receipts of the government (revenues from tax and other sources), and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues are made up of taxes such as income tax, corporate tax, excise, customs and other duties that the government levies.

Government has several policies to implement in the overall task of performing its functions to meet the objectives of social & economic growth. For implementing these policies, it has to spend huge amount of funds on defence, administration, and development, welfare projects & various other relief operations. It is therefore necessary to find out all possible sources of getting funds so that sufficient revenue can be generated to meet the mounting expenditure.

Capital Expenditure:
Capital expenditure is one of the components of the capital budget. It refers to the funds that a company or government entity allocates for the acquisition, improvement, or maintenance of fixed assets such as land, buildings, equipment, and infrastructure. These expenditures are typically made with the intention of generating long-term benefits or enhancing the productive capacity of the organization.

Importance of Capital Expenditure:
Capital expenditure plays a crucial role in the growth and development of an organization. It allows companies to invest in new projects, expand their operations, replace outdated equipment, and improve infrastructure. By making these investments, organizations can increase their productivity, efficiency, and competitiveness in the market.

Types of Capital Expenditure:
1. Acquisition: This type of capital expenditure involves purchasing new assets such as land, buildings, machinery, or vehicles. It helps organizations expand their operations, enter new markets, or replace outdated assets.

2. Improvement: Capital expenditure also includes expenditures made to improve or upgrade existing assets. This may involve renovating buildings, upgrading technology systems, or enhancing manufacturing processes. These improvements aim to enhance the value, efficiency, or longevity of the assets.

3. Maintenance: Regular maintenance and repairs of existing assets are also considered capital expenditures. This includes activities such as equipment servicing, building maintenance, or infrastructure repairs. Proper maintenance ensures that assets remain operational and productive for an extended period.

Process of Capital Expenditure:
The process of capital expenditure typically involves several stages:

1. Identification: Organizations identify potential capital expenditure projects based on their strategic goals, operational needs, and market conditions.

2. Evaluation: The identified projects are evaluated based on various criteria such as financial viability, return on investment, risk assessment, and alignment with organizational objectives.

3. Approval: Once the evaluation is complete, the projects are presented to the management or governing body for approval. This involves a thorough review of the project's feasibility, budget, and expected benefits.

4. Implementation: After approval, the capital expenditure projects are implemented. This involves the procurement of assets, construction or renovation activities, and deployment of resources.

5. Monitoring: Throughout the implementation phase, the progress of the projects is monitored to ensure that they are on track and within budget. Any deviations or issues are addressed promptly.

6. Post-implementation review: Once the projects are completed, a post-implementation review is conducted to assess the outcomes, benefits, and overall success of the capital expenditure initiatives.

In conclusion, capital expenditure is a critical component of the capital budget as it allows organizations to invest in assets that can generate long-term benefits and enhance their productivity. It involves the acquisition, improvement, and maintenance of fixed assets and follows a systematic process from identification to post-implementation review.

Budgetary policies and their implementation

Budgetary policies refer to the measures taken by the government to manage the economy through fiscal policy. These policies are aimed at achieving macroeconomic stability, economic growth, and social welfare. The implementation of budgetary policies involves several steps, from the preparation of the budget to its execution.

Role of the government

The government plays a central role in implementing budgetary policies. The government is responsible for preparing and presenting the budget to the parliament, where it is debated and approved. Once the budget is approved, the government is responsible for executing the policies outlined in the budget.

The government uses various tools to implement budgetary policies, including taxation, government spending, and borrowing. The government may increase taxes to reduce inflation and decrease taxes to stimulate economic growth. Similarly, government spending may be increased or decreased to achieve economic objectives. Finally, the government may borrow money to finance its budget deficit or repay its debts.

Conclusion

In conclusion, budgetary policies are implemented by the government through fiscal policy. The government plays a central role in the preparation and execution of the budget, using various tools to achieve economic objectives.

Option B budgetary policy is a right answer ,since in the objectives of budget there is Economic equality or Reducing Inequality of Income and Wealth and the function says the Government uses fiscal instruments of taxation and subsidies to improve the distribution of income and wealth in the Economy. Higher taxes can be imposed by the government on income earned by the rich and also on the goods consumed by them. Inorder to reduce their personal income, equitable distribution of income is a way to Social Justice. It is also known as distributive function of the government.

Capital expenditure or capital expense is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.

Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a long-term venture.

Repayment of loan is also capital expenditure because it reduces liability. These expenditures are met out of capital receipts of the government including capital transfers from rest of the world.

कैटेलोनिया का स्वायत्त समुदाय स्पेन के उत्तर-पूर्वी कोने में एक त्रिकोणीय क्षेत्र में है। यह फ्रांस और अंडोरा द्वारा उत्तर की ओर, पूर्व में भूमध्य सागर, दक्षिण में वालेंसिया का स्वायत्त समुदाय और पश्चिम में आरागॉन का स्वायत्त समुदाय है। क्रीमिया गणराज्य, आधिकारिक तौर पर यूक्रेन का हिस्सा, काला सागर और आज़ोव सागर के बीच यूक्रेन के दक्षिण से फैला एक प्रायद्वीप पर स्थित है। इसे संकीर्ण केर्च जलडमरूमध्य द्वारा रूस से पूर्व में अलग किया जाता है। मिंडानाओ, द्वीप, फ़िलीपींस में दूसरा सबसे बड़ा (ल्यूज़ोन के बाद) द्वीपसमूह के दक्षिणी भाग में, बोहोल, फिलीपीन, सेलेब्स और सुलु समुद्रों से घिरा हुआ है। ओरोमिया इथियोपिया के नौ जातीय आधारित क्षेत्रीय राज्यों में से एक है, जो 284,538 वर्ग किलोमीटर को कवर करता है।

Correct option is (b)

Transfer payment. In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income and wealth (payment) made without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.

Revenue Expenditure and its Characteristics

Revenue expenditure refers to the expenses incurred by the government in running its day-to-day operations and to provide public services. It is an outflow of funds from the government's treasury that does not create any asset or reduce any liability. Let's understand the features of revenue expenditure in detail.

No Creation of Assets

Revenue expenditure does not create any asset for the government. For instance, salaries paid to government employees, grants given to state governments, subsidies given to farmers, and expenses incurred on the maintenance of government buildings are all revenue expenditures that do not create any asset for the government.

No Creation of Liability

Revenue expenditure does not create any liability for the government. It means that the government does not borrow money or create any liability to finance its revenue expenditure. For example, the expenses incurred on printing currency notes, payment of interest on loans taken by the government, and the repayment of loans are not considered revenue expenditures.

Day-to-Day Expenses

Revenue expenditure is incurred by the government to run its day-to-day operations and provide public services. It includes expenses on salaries, wages, pensions, subsidies, interest payments, and grants. These expenses are necessary to maintain the functioning of the government and provide basic services to citizens.

No Capital Expenditure

Revenue expenditure is different from capital expenditure, which is incurred by the government to acquire assets that have a long-term benefit. Capital expenditure includes expenses on the acquisition of land, buildings, machinery, and equipment. In contrast, revenue expenditure is not capitalized as it does not create any asset.

Conclusion

In conclusion, revenue expenditure is an important aspect of government expenditure as it covers the expenses incurred by the government in providing public services and running its day-to-day operations. It does not create any asset or liability for the government.

Assertion (A): It is believed that small-scale industries are more 'labour intensive' i.e. they use more labour than the large-scale industries and, therefore, generate more employment.

Reason (R): These small-scale industries cannot compete with the big industrial firms.

The correct answer is option B: Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).

Explanation:

Labour Intensive:
- Small-scale industries are often referred to as 'labour intensive' because they rely more on manual labor in their production processes.
- Due to their limited capital and resources, small-scale industries tend to have smaller machinery and equipment, which require more human effort for production.
- This higher reliance on labor leads to a higher level of employment generation in small-scale industries compared to large-scale industries.

Reason for Assertion:
- The reason given in the statement (R) is that small-scale industries cannot compete with big industrial firms.
- This reason is not the correct explanation for the assertion (A) that small-scale industries are more labor-intensive and generate more employment.
- While it is true that small-scale industries may face challenges in competing with large-scale industries in terms of economies of scale, market share, and financial resources, it does not directly explain why small-scale industries are more labor-intensive.

Summary:
- The assertion (A) that small-scale industries are more labor-intensive and generate more employment is true.
- However, the reason (R) given that small-scale industries cannot compete with big industrial firms is not the correct explanation for this assertion.
- Therefore, the correct answer is option B: Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).

Economists usually measure economic growth in terms of gross domestic product (GDP) or related indicators, such as gross national product (GNP) or gross national income (GNI) which are derived from the GDP calculation. GDP is calculated from a country's national accounts which report annual data on incomes, expenditure and investment for each sector of the economy. Using these data it is possible to estimate the total income earned in the country in any given year (GDP) or the total income earned by a country's citizens (GNP or GNI).

The 1956 policy in injunction with the IDA act did just reverse of what it was supposed to do. The licensing policy of the government favoured big business houses who were in better position to raise huge amount of capital and had the better management skills to run the industry. They were also able to secure financial assistance from development and finance institutions. Further, since there was no proper system of allocation of licenses in place; pre-empting of licensing by authorities to select people or groups happened due to an array of reasons. Overall, the freedom of entry into industry was restricted due to licensing and this resulted in the concentration of economic power in few individuals.

Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increase the Fiscal deficit.

The correct answer is option B, which states that both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).

Explanation:

Fiscal Deficit:
Fiscal deficit refers to the difference between a government's total revenue and its total expenditure. It is an indicator of the government's borrowing requirements to meet its expenditure needs.

Measuring Fiscal Deficit:
Fiscal deficit is measured in terms of borrowings because when the government's total expenditure exceeds its total revenue, it needs to borrow money to bridge the gap. This borrowing can be from both domestic and external sources.

External Borrowings and Fiscal Deficit:
While it is true that external borrowings increase the fiscal deficit, it is not the only factor that contributes to the fiscal deficit. The fiscal deficit can also increase due to factors such as increased government expenditure or decreased revenue generation.

Reason (R) Explanation:
External borrowings can increase the fiscal deficit because when the government borrows funds from external sources, it adds to its overall debt burden. This increased debt burden leads to higher interest payments, which further contribute to the fiscal deficit.

However, it is important to note that external borrowings are not the sole determinant of the fiscal deficit. Government expenditure and revenue generation also play significant roles in determining the fiscal deficit. For example, if the government increases its expenditure on infrastructure projects without corresponding revenue generation, the fiscal deficit will increase even without external borrowings.

Therefore, while external borrowings can contribute to the fiscal deficit, they are not the only measure or explanation of it. The fiscal deficit is a comprehensive measure that takes into account the overall financial position of the government, including borrowings, expenditure, and revenue.

Explanation:

• Assertion (A): Inward Looking Trade Strategy is called Import Substitution.


• Reason (R): Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.

The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Explanation:

• The term Import Substitution means that a country tries to produce goods and services domestically rather than importing them from other countries. This helps in reducing the dependence on foreign countries and also helps in developing domestic industries.


• Inward Looking Trade Strategy is a policy where a country tries to focus on its domestic market rather than international markets. This policy involves reducing imports and increasing exports to boost the economy.


• In the given reason, it is stated that instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. This is an example of import substitution where India is trying to produce vehicles domestically instead of importing them from other countries.


• Thus, both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Finance Minister Nirmala Sitharaman on Monday announced that her government will privatise two public sector banks (PSBs) and one general insurance company as well.

Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.

Direct Tax:
- A direct tax is a type of tax that is levied directly on individuals or entities and cannot be passed on to someone else.
- It is imposed on the income, wealth, or property of the taxpayer.
- Direct taxes are typically progressive in nature, meaning that the tax rate increases as the taxpayer's income or wealth increases.
Examples of Direct Taxes:
- Income Tax: This is a tax imposed on individuals or entities based on their income or profits. It is usually calculated based on the income brackets and tax rates set by the government.
- Corporate Tax: This is a tax imposed on the profits of corporations or businesses. It is usually calculated based on the company's net income after deducting expenses and allowances.
- Capital Gains Tax: This is a tax imposed on the profit earned from the sale of an asset, such as stocks, bonds, or real estate. It is calculated based on the difference between the purchase price and the sale price of the asset.
- Property Tax: This is a tax imposed on the value of real estate or other properties owned by individuals or entities. It is usually calculated based on the assessed value of the property.
- Wealth Tax: This is a tax imposed on the net wealth or assets of individuals or entities. It is calculated based on the total value of assets minus any debts or liabilities.
Answer:
- Income Tax is an example of a direct tax because it is imposed directly on individuals or entities based on their income or profits.

Assertion (A): Capitalist economies foster self-interest and push economic growth.
Reason (R): Market economies make the best use of available resources for economic growth.

Explanation:
Capitalist Economies Foster Self-Interest and Push Economic Growth
- Capitalism is an economic system where the means of production and distribution are privately owned and operated for profit.
- In capitalist economies, individuals and businesses are driven by self-interest and the pursuit of profit.
- Self-interest motivates individuals to work hard, innovate, and take risks to improve their own economic well-being.
- As individuals pursue their self-interest, the economy as a whole benefits from increased productivity, economic growth, and higher standards of living.
- Capitalist economies encourage competition, which leads to efficiency and innovation as businesses strive to offer better products and services at competitive prices.
- The profit motive in capitalism serves as an incentive for individuals and businesses to invest, expand, and create jobs, further stimulating economic growth.

Market Economies Make the Best Use of Available Resources for Economic Growth
- Market economies are characterized by the free exchange of goods and services through voluntary transactions between buyers and sellers.
- In a market economy, prices are determined by supply and demand, and resources are allocated based on market forces rather than central planning.
- The price mechanism in a market economy signals the relative scarcity and value of goods and services, guiding producers and consumers in their decision-making.
- Market economies allow resources to be allocated efficiently based on consumer preferences and the profitability of different goods and services.
- The competition among producers in a market economy encourages the efficient use of resources as businesses strive to minimize costs and maximize profits.
- The decentralized decision-making in a market economy ensures that resources are directed towards the most productive and valued uses, promoting economic growth.

Conclusion
Both the assertion and the reason are true. Capitalist economies do foster self-interest and push economic growth, and market economies do make the best use of available resources for economic growth. However, the reason does not fully explain why capitalist economies foster self-interest and push economic growth, so the correct answer is option B.

**Indirect Tax Explanation:**

Indirect tax refers to a type of tax that is imposed by the government on goods and services. Unlike direct taxes, such as income tax or property tax, indirect taxes are not directly paid by the person or entity on whom the tax is levied. Instead, the burden of the tax is passed on to another party, usually the consumer or purchaser of the goods or services.

**Explanation of Option D:**

Option D states that the liability to pay and the incidence of the tax do not lie on the same person. This means that the person who is legally responsible for paying the tax is not the one who ultimately bears the economic burden of the tax.

**Understanding the Incidence of Indirect Taxes:**

To understand this concept, let's consider an example of a value-added tax (VAT). A VAT is a type of indirect tax that is imposed at each stage of production and distribution of goods and services.

Suppose a manufacturer produces a product and incurs certain costs in the process. When the manufacturer sells the product to a wholesaler, they include the VAT in the selling price. The wholesaler, in turn, adds their own costs and profit margin, and then sells the product to a retailer, again including the VAT in the selling price. Finally, the retailer sells the product to the end consumer, adding their own costs and profit margin, and the VAT is once again included in the final selling price.

**The Burden of Indirect Taxes:**

In this example, the liability to pay the VAT lies with the manufacturer, the wholesaler, and the retailer. However, the economic burden of the tax is ultimately borne by the end consumer, as the VAT is passed on at each stage of the supply chain and is included in the final selling price of the product.

Therefore, the liability to pay the tax (manufacturer, wholesaler, and retailer) is different from the incidence of the tax (end consumer). This is why option D is the correct answer, as it accurately describes the nature of indirect taxes.

The government realized that the agricultural output was not sufficient for the whole country. One way to boost the produce was to make the tillers of the land its owner. And so efforts were made to abolish the intermediaries and this was known as the land reforms.

Modernization, in sociology, the transformation from a traditional, rural, agrarian society to a secular, urban, industrial society.

Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes.

In the context of India's rapidly growing population, the country's traditional agricultural practices yielded insufficient food production. By the 1960s, this low productivity led India to experience food grain shortages that were more severe than those of other developing countries. Agricultural technological advancements offered opportunities to increase productivity.

Economists have found that poor nations can progress only if they have a good industrial sector. Industry provides employment which is more stable than the employment in agriculture; it promotes modernisation and overall prosperity. It is for this reason that the five year plans place a lot of emphasis on industrial development.

Assertion: Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.

Reason: Our planners wanted to use foreign exchange for importing luxury goods.

Explanation:

Tariffs and quotas were implemented in the economic policy post-Independence to protect and promote domestic industries. This assertion is true because the government wanted to encourage the growth of domestic industries and reduce reliance on imported goods. By imposing tariffs and quotas on imported goods, the government aimed to make domestic products more competitive and stimulate the growth of local industries.

The reason given, that our planners wanted to use foreign exchange for importing luxury goods, is false. The objective of implementing tariffs and quotas was not to prioritize the import of luxury goods but to protect domestic industries and reduce dependence on imports in general. The government wanted to promote self-sufficiency and develop domestic industries to boost the economy.

The correct answer is option 'C' because the assertion is true, but the reason given is false. The reason does not explain the purpose of implementing tariffs and quotas in the economic policy post-Independence accurately.

In summary:
- Assertion (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
- Reason (R): Our planners wanted to use foreign exchange for importing luxury goods.

- The assertion is true because tariffs and quotas were indeed used to support domestic industries.
- The reason is false because the objective was not to prioritize the import of luxury goods but to promote self-sufficiency and reduce dependence on imports in general.

Other ways to improve the deficit with respect to the current Covid situation:

Borrowing from public:
- The government can consider borrowing from the public through the issuance of bonds or other financial instruments to raise funds for managing the deficit.
- This can help in increasing liquidity in the market and generating additional revenue for the government.

Lowering government expenditure:
- The government can focus on cutting down unnecessary expenses and optimizing resource allocation.
- By reassessing budgets, reducing non-essential spending, and streamlining processes, the government can effectively lower its expenditure and improve the deficit situation.

Raising government revenue:
- Implementing tax reforms and increasing tax compliance can help in boosting government revenue.
- The government can also explore avenues for generating revenue through innovative methods such as asset monetization, public-private partnerships, and strategic disinvestments.

Implementing austerity measures:
- By enforcing austerity measures across government departments, the government can control spending and ensure efficient utilization of resources.
- This can include measures such as salary cuts for officials, reduction in travel expenses, and limiting unnecessary expenditures.

Stimulating economic growth:
- Promoting economic growth through policies that encourage investment, consumption, and production can lead to increased revenue generation for the government.
- By supporting key sectors and industries, the government can stimulate economic activity and subsequently improve the deficit situation.
Overall, a combination of prudent financial management, revenue generation strategies, and economic stimulus measures can help the government address the deficit challenges posed by the current Covid situation.

Capital Budget consists of capital receipts and payments. It also incorporates transactions in the Public Account. 

C

Capital Receipts: Explanation of Option B

Capital receipts are the inflow of funds that are received by the government in the form of capital or non-recurring receipts. These receipts are not a part of regular revenue receipts of the government. Capital receipts can be in the form of loans, borrowings, sale of assets like land, buildings, machinery, etc.

Liabilities are the obligations or debts that are owed by an individual or an organization. When the government receives capital receipts, it creates a liability for itself. This is because the government has to repay the loans and borrowings in the future. The sale of assets also creates a liability for the government as it has to provide compensation for the assets sold.

Hence, the correct answer to the given question is option B – Capital receipts create liability for the government.

Advantages of Capital Receipts

Capital receipts have the following advantages for the government:

1. Capital receipts help the government to raise funds for long-term investment projects like infrastructure, education, health, etc.

2. Capital receipts provide a source of funds to the government without affecting the revenue position of the government.

3. Capital receipts can help the government to reduce the fiscal deficit by reducing the reliance on revenue receipts.

4. Capital receipts can also help the government to reduce the burden of interest payment on the revenue account.

Conclusion

Capital receipts are an important source of funds for the government. They can help the government to finance long-term investment projects without affecting its revenue position. However, the government should be cautious while raising capital receipts as they create a liability for the government. The government should ensure that the funds raised through capital receipts are utilized for productive purposes and repayment obligations are met on time.

Revenue Deficit refers to the excess of total revenue expenditure over total revenue receipts. It means that the government. will not be able to meet its revenue expenditure from its revenue receipts.

Assertion (A): Trade policy relates with protection from imports in two forms: tariffs and quotas.
Reason (R): Quotas specify the quality of goods which can be imported.

Explanation:
The trade policy of a country is a set of rules and regulations that govern its international trade. It includes measures taken by the government to protect domestic industries from foreign competition. Two common forms of trade protection are tariffs and quotas.

Tariffs:
- A tariff is a tax imposed on imported goods. It increases the price of imported goods, making them less competitive compared to domestic products.
- Tariffs are used to protect domestic industries by making imported goods more expensive, thus encouraging consumers to buy domestic products.
- The purpose of imposing tariffs is to restrict the quantity of imports and protect domestic producers from competition.

Quotas:
- A quota is a limit or restriction on the quantity of a specific good that can be imported into a country.
- Quotas specify the quantity or volume of goods that can be imported within a given period.
- The purpose of imposing quotas is to limit the quantity of imports and protect domestic industries from foreign competition.
- Quotas can be set based on the quality, quantity, or value of goods being imported.

Analysis:
The assertion states that trade policy relates to protection from imports through tariffs and quotas. This is true as both tariffs and quotas are measures used by governments to protect domestic industries from foreign competition.

The reason states that quotas specify the quality of goods that can be imported. This is incorrect as quotas do not specify the quality of goods, but rather the quantity or volume of goods that can be imported.

Conclusion:
- The assertion is true as trade policy does relate to protection from imports through tariffs and quotas.
- The reason is false as quotas do not specify the quality of goods that can be imported.
- Therefore, option C is the correct answer.

The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 per cent in 1990-91. The progress of the Indian economy during the first seven plans was impressive indeed.

Government can collect tax from the rich and exempt the poor from income tax. Money so collected can be spent on providing free services to the poor. It will reduce disposable income of the rich and increase that of the poor.

Assertion (A): The need to obtain a license to start an industry was misused by big industrial houses.


Reason (R): A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms.


The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Explanation:
To understand the given assertion and reason, let's break them down and analyze each one individually.

Assertion (A): The need to obtain a license to start an industry was misused by big industrial houses.
Industrial licensing refers to the process of obtaining permission from the government to start a new industry or expand an existing one. In many countries, including India, industrial licensing was prevalent in the past. The assertion states that big industrial houses misused the requirement of obtaining a license to start an industry.

This assertion is true. Big industrial houses often exploited the licensing system to their advantage. They used their influence, connections, and resources to obtain licenses easily, while smaller players faced significant hurdles and delays. This allowed big industrial houses to establish monopolies or oligopolies in certain sectors, limiting competition and maximizing their own profits.

Reason (R): A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms.
The reason provides an explanation for the assertion. It states that big industrialists would obtain licenses not necessarily to start new firms but rather to hinder competitors from establishing new firms.

This reason is also true. Big industrial houses, by obtaining licenses, could prevent competitors from entering the market. The licensing process acted as a barrier to entry for new firms, as they had to go through bureaucratic procedures, fulfill certain criteria, and face potential delays. By controlling the licensing process, big industrialists could block potential competitors and maintain their dominance in the industry.

Conclusion:
In conclusion, both the assertion and reason are true. The need to obtain a license to start an industry was indeed misused by big industrial houses. They used their influence to easily obtain licenses, while smaller players faced difficulties. The licenses were not always obtained for starting new firms but rather to prevent competitors from entering the market.

Heavy Capital Requirement There was a need for a large amount of investment in infrastructure and heavy and basic industries for economic development Private sector in India at the eve of independence did not have the capacity to invest such a big amount. Private entrepreneurs were not prepared to bear the risks involved in these projects which had long gestation periods along with high capital investment. Thus, the government played the leading role to provide the basic framework of heavy industries and infrastructure through the public sector to facilitate the private sector.

Small scale industries depended upon the business’s capital and labour. This definition is still used to demarcate between small, medium and large-scale industries.

The given question is related to the missing number in a sequence. Let's try to solve it step by step.

Step 1: Analyzing the sequence

The given sequence is:

, / ? (2020)

We need to find the missing number in the sequence. To do that, we need to analyze the given sequence.

The first thing we notice is that there are some symbols in the sequence. These symbols may represent some arithmetic operations or mathematical concepts.

We also notice that the sequence has only four numbers, which means that the missing number must be one of these four numbers.

Step 2: Finding the pattern

To find the missing number in the sequence, we need to find the pattern in the given sequence.

The first symbol in the sequence is a comma (,). This symbol may represent subtraction or addition. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The second symbol in the sequence is a forward slash (/). This symbol may represent division or fractions. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The third symbol in the sequence is a backward slash (\). This symbol may represent multiplication or inverse operations. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The fourth symbol in the sequence is a question mark (?). This symbol may represent an unknown value or variable. This is the missing number that we need to find.

The last number in the sequence is 2020. This number may or may not have any significance in finding the missing number.

Step 3: Using options to find the missing number

The given options are:

a) 1 2
b) 4
c) 1 3
d)2, 3, 4

We can eliminate option B because it's a single number, and we need to find a sequence of numbers.

We can eliminate option A because it's a sequence of two numbers, and we need to find a sequence of four numbers.

We can eliminate option C because it's a sequence of two numbers, and we need to find a sequence of four numbers.

Option D has a sequence of three numbers, which may or may not be the correct answer. However, we can use these numbers to find the missing number.

If we consider the sequence 2, 3, 4, we notice that these numbers are consecutive and increasing by 1. This could be the pattern in the given sequence.

If we assume that the comma (,) represents subtraction and the forward slash (/) represents division, we can perform the following operations:

, / ? (2020)

=> 2020 / 4 - 3 = ?

=> 505 - 3 = 502

Therefore, the missing number in the sequence is 502.

Step 4: Verifying the answer

We can verify our answer by performing the same operations with the other options.

For option A: 2020 / 2 - 1 = 1009 (incorrect)
For option C: 2020 / 3 - 1 = 673.333 (incorrect)
For option D: 2020 / 4 - 2 = 503 (incorrect)

Therefore, the correct answer is option D, which

Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain)

Direct taxes are levied on individuals and companies by the country's supreme tax body. Direct taxes are directly paid by those on whom it is imposed. For instance, taxpayers directly pay income tax, property tax, tax on assets and gifts to the government.

Government redistributes income and wealth with the help of government budget. it imposes high tax on rich to absorb extra purchasing power from the economy and give it to the poor in the form of subsidies. This reduces the gap between the rich and the poor and inequality is decreased and redistribution of income and wealth is achieved with the help of government budget.