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Consider the following statements:1. Article 292 of the Indian Constitution mandates that the Union Government can borrow both inside and outside the country, as specified by the Parliament.2. The Public Debt of India includes Internal Liabilities, External Liabilities, and Public Account Liabilities of the Central Government.3. The concept of adjusted debt factors in the impact of external debt at the current exchange rate of the rupee and nets out liabilities not used for financing the deficit of the Central Government.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
1. Article 292 of the Indian Constitution mandates that the Union Government can borrow both inside and outside the country, as specified by the Parliament.
2. The Public Debt of India includes Internal Liabilities, External Liabilities, and Public Account Liabilities of the Central Government.
3. The concept of adjusted debt factors in the impact of external debt at the current exchange rate of the rupee and nets out liabilities not used for financing the deficit of the Central Government.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
Valor Academy answered |
1. Article 292 of the Indian Constitution mandates that the Union Government can borrow both inside and outside the country, as specified by the Parliament. This statement is correct. Article 292 provides the Union Government the power to borrow funds as specified by the Parliament.
2. The Public Debt of India includes Internal Liabilities, External Liabilities, and Public Account Liabilities of the Central Government. This statement is incorrect. The Public Debt of India includes only Internal and External liabilities incurred by the Central Government, not the Public Account Liabilities.
3. The concept of adjusted debt factors in the impact of external debt at the current exchange rate of the rupee and nets out liabilities not used for financing the deficit of the Central Government. This statement is correct. Adjusted debt considers the current exchange rate for external debt and excludes certain liabilities like those from the Market Stabilization Scheme and NSSF that are not used to finance the deficit.
Therefore, the correct answer is Option C.
Consider the following statements:1. Plan expenditures are primarily asset-creating and productive.2. The classification of expenditures as Plan and Non-Plan was replaced by Revenue and Capital from the fiscal year 2017-18.3. Non-Plan expenditures include investments in new factories and infrastructure projects.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements:
1. Plan expenditures are primarily asset-creating and productive.
2. The classification of expenditures as Plan and Non-Plan was replaced by Revenue and Capital from the fiscal year 2017-18.
3. Non-Plan expenditures include investments in new factories and infrastructure projects.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
Divey Sethi answered |
1. Plan expenditures are primarily asset-creating and productive. This statement is correct. Plan expenditures are designed to create assets and are considered productive investments. They are intended to support the long-term economic growth of the country by funding projects like new infrastructure, educational programs, and technological advancements.
2. The classification of expenditures as Plan and Non-Plan was replaced by Revenue and Capital from the fiscal year 2017-18. This statement is also correct. The Indian government transitioned from the classification of Plan and Non-Plan expenditures to the more comprehensive categories of Revenue and Capital expenditures starting in the fiscal year 2017-18. This change aimed to simplify and improve the management of public finances.
3. Non-Plan expenditures include investments in new factories and infrastructure projects. This statement is incorrect. Non-Plan expenditures are typically consumptive and non-productive, covering items such as salaries, pensions, interest payments, subsidies, and defense expenses. Investments in new factories and infrastructure projects are categorized under Plan expenditures, not Non-Plan expenditures.
Therefore, the correct answer is Option B: 1 and 2 Only.
Consider the following statements:Statement-I:
Debts of the Governments: While the Union Government of India is mandated to borrow inside and outside the country the amount specified by the Parliament (Article 292), States are mandated (Article 293) to borrow only inside the country.Statement-II:
Public Debt of India includes only Internal and External liabilities incurred by the Central Government.Which one of the following is correct in respect of the above statements?- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- c)Statement-I is correct, but Statement-II is incorrect
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
Statement-I:
Debts of the Governments: While the Union Government of India is mandated to borrow inside and outside the country the amount specified by the Parliament (Article 292), States are mandated (Article 293) to borrow only inside the country.
Debts of the Governments: While the Union Government of India is mandated to borrow inside and outside the country the amount specified by the Parliament (Article 292), States are mandated (Article 293) to borrow only inside the country.
Statement-II:
Public Debt of India includes only Internal and External liabilities incurred by the Central Government.
Public Debt of India includes only Internal and External liabilities incurred by the Central Government.
Which one of the following is correct in respect of the above statements?
a)
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
b)
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
c)
Statement-I is correct, but Statement-II is incorrect
d)
Statement-I is incorrect, but Statement-II is correct
|
Disha Yadav answered |
Explanation of the Statements
Statement-I discusses the borrowing powers of the Union and State Governments in India concerning Article 292 and Article 293 of the Constitution.
- Union Government (Article 292):
- Can borrow both domestically and internationally.
- Borrowing is subject to the limits specified by the Parliament.
- State Governments (Article 293):
- Limited to borrowing only within the country.
- This reflects a more controlled financial environment for states.
Statement-II pertains to the nature of Public Debt in India.
- Public Debt of India:
- Comprises both internal and external liabilities.
- However, Statement-II incorrectly states that it includes only the liabilities incurred by the Central Government, neglecting the public debt incurred by State Governments.
Correctness of the Statements
- Statement-I:
- Correct, as it accurately describes the borrowing framework for both Union and State Governments.
- Statement-II:
- Incorrect, because it limits the definition of public debt to only the liabilities of the Central Government and omits the debts of State Governments.
Conclusion
The answer to the question is option 'C':
- Statement-I is correct, but Statement-II is incorrect.
This distinction is crucial in understanding the overall framework of public debt management in India.
Statement-I discusses the borrowing powers of the Union and State Governments in India concerning Article 292 and Article 293 of the Constitution.
- Union Government (Article 292):
- Can borrow both domestically and internationally.
- Borrowing is subject to the limits specified by the Parliament.
- State Governments (Article 293):
- Limited to borrowing only within the country.
- This reflects a more controlled financial environment for states.
Statement-II pertains to the nature of Public Debt in India.
- Public Debt of India:
- Comprises both internal and external liabilities.
- However, Statement-II incorrectly states that it includes only the liabilities incurred by the Central Government, neglecting the public debt incurred by State Governments.
Correctness of the Statements
- Statement-I:
- Correct, as it accurately describes the borrowing framework for both Union and State Governments.
- Statement-II:
- Incorrect, because it limits the definition of public debt to only the liabilities of the Central Government and omits the debts of State Governments.
Conclusion
The answer to the question is option 'C':
- Statement-I is correct, but Statement-II is incorrect.
This distinction is crucial in understanding the overall framework of public debt management in India.
Consider the following statements:Statement-I:
Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.Statement-II:
Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.Which one of the following is correct in respect of the above statements?- a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- c) Statement-I is correct, but Statement-II is incorrect
- d) Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements:
Statement-I:
Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.
Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.
Statement-II:
Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.
Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.
Which one of the following is correct in respect of the above statements?
a)
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
b)
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
c)
Statement-I is correct, but Statement-II is incorrect
d)
Statement-I is incorrect, but Statement-II is correct
|
EduRev UPSC answered |
Statement-I correctly defines a deficit budget as one where expenditures exceed receipts, indicating spending beyond means, which aligns with the provided information on deficit budgets. However, Statement-II incorrectly defines a surplus budget as one where expenditures are less than receipts, indicating a lower concern towards development. This is inaccurate as a surplus budget symbolizes financial health and the ability to allocate resources to development, not a lack of concern.
Consider the following statements:1. India's retail inflation rate peaked at 7.8% in April 2022, exceeding the RBI's upper tolerance limit of 6%.2. The gross non-performing assets ratio of scheduled commercial banks reached a seven-year low of 5%.3. India's e-commerce market is projected to grow at 18% annually through 2025.Which of the statements given above is/are correct?- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Consider the following statements:
1. India's retail inflation rate peaked at 7.8% in April 2022, exceeding the RBI's upper tolerance limit of 6%.
2. The gross non-performing assets ratio of scheduled commercial banks reached a seven-year low of 5%.
3. India's e-commerce market is projected to grow at 18% annually through 2025.
Which of the statements given above is/are correct?
a)
1 Only
b)
1 and 2 Only
c)
1 and 3 Only
d)
1, 2 and 3
|
Lohit Matani answered |
1. Retail Inflation Rate: The statement is correct. India's retail inflation rate indeed peaked at 7.8% in April 2022, which was above the Reserve Bank of India's upper tolerance limit of 6%. This information highlights the inflationary pressures faced by the Indian economy during that period.
2. Gross Non-Performing Assets Ratio: This statement is also correct. The gross non-performing assets (NPA) ratio of scheduled commercial banks reached a seven-year low of 5%. This indicates an improvement in the banking sector's asset quality and a reduction in the burden of bad loans.
3. E-commerce Market Growth: The statement regarding India's e-commerce market is correct. The market is projected to grow at an annual rate of 18% through 2025. This reflects the rapid expansion and increasing penetration of online retail in India.
All three statements are accurate and align with the provided data. Therefore, the correct answer is Option D.
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