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Consider the following statements regarding Off-budget financing.
1.    Off-budget spending is not included in the estimation of economic metrics, such as the fiscal deficit.
2.    Parliamentary control on such spending is also reduced.
3.    National Small Savings Fund is the biggest source for the Government for Off-budget financing.
Which of the above statements is/are correct?
  • a)
    1 and 2 only
  • b)
    1 and 3 only
  • c)
    2 and 3 only
  • d)
    1, 2, 3
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Off-budget financing.1.Off...
  • Off-budget financing by its nature isn't taken into account when calculating fiscal indicators. This refers to expenditure that's not funded through the budget.
  • Off-budget financing by its nature isn't taken into account when calculating fiscal indicators. But the cost is borne by the budget through some mechanism or the other. Such financing tends to hide the actual extent of government spending, borrowings and debt and increase the interest burden.
  • The government's began harnessing funds from outside the Budget to service its Budget commitments since 2016-17. The size of this initiative has grown more than two-fold in a few years, and now nears 1% of grossdomestic product. What began with food security, off-Budget financing now caters heavily to a range of core spending areas.
  • Off-Budget spending may remain high, or rise, in 2021-22. The reason: theNational Small Savings Fund, which is the biggest source for such spending, is growing faster than ever this year. In a year when average incomes have not grown much, people have poured money into savings for social security.
REVENUE SPENDING:
  1. Deferred fertilizer arrears/bills through special banking arrangements
  2. Food subsidy bills/arrears of Food Corp. of India through borrowings.
  3. Accelerated Irrigation Benefit Program through National Bank for Agriculture and Rural Development borrowing
CAPITAL SPENDING
  1. Indian Railway Finance Corp. borrowing for railway projects
  2. Power Finance Corp funding of power projects
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Consider the following statements regarding Off-budget financing.1.Off-budget spending is not included in the estimation of economic metrics, such as the fiscal deficit.2.Parliamentary control on such spending is also reduced.3.National Small Savings Fund is the biggest source for the Government for Off-budget financing.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2, 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding Off-budget financing.1.Off-budget spending is not included in the estimation of economic metrics, such as the fiscal deficit.2.Parliamentary control on such spending is also reduced.3.National Small Savings Fund is the biggest source for the Government for Off-budget financing.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2, 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Off-budget financing.1.Off-budget spending is not included in the estimation of economic metrics, such as the fiscal deficit.2.Parliamentary control on such spending is also reduced.3.National Small Savings Fund is the biggest source for the Government for Off-budget financing.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2, 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Off-budget financing.1.Off-budget spending is not included in the estimation of economic metrics, such as the fiscal deficit.2.Parliamentary control on such spending is also reduced.3.National Small Savings Fund is the biggest source for the Government for Off-budget financing.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2, 3Correct answer is option 'D'. Can you explain this answer?.
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