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Consider the following statements with respect to the central and state finances:
1. The Government of India can borrow amounts specified by the Parliament from time to time.
2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.
3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.
Which of the statements given above is/are correct?
1. The Government of India can borrow amounts specified by the Parliament from time to time.
2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.
3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.
Which of the statements given above is/are correct?
- a)1 and 2 only
- b)1 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements with respect to the central and stat...
Statement 1: The Government of India can borrow amounts specified by the Parliament from time to time.
This statement is correct. The Government of India has the authority to borrow funds as specified by the Parliament. The borrowing can be both from domestic and external sources. The government borrows funds to finance its expenditure and meet its financial obligations. The borrowing is done through the issuance of government securities such as treasury bills, bonds, and loans from institutions like the Reserve Bank of India.
Statement 2: Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.
This statement is incorrect. While the Department of Economic Affairs is responsible for managing the debt and liabilities of the central government, it does not deal with the debt and liabilities management of states. The debt and liabilities management of states is the responsibility of the respective state governments. The Department of Economic Affairs also plays a role in the enforcement of the fiscal roadmap mandated by the Finance Commissions, but this is primarily for the central government.
Statement 3: The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.
This statement is incorrect. The share of loans and advances from the Centre in the composition of State Government liabilities has actually decreased since 1991. Prior to 1991, the central government used to provide a significant portion of the funds to the states in the form of loans and advances. However, with the introduction of economic reforms in 1991, the emphasis shifted towards fiscal decentralization and states were encouraged to raise their own resources. As a result, the share of loans and advances from the Centre in the composition of State Government liabilities has decreased over the years.
In conclusion, statement 1 is correct, statement 2 is incorrect, and statement 3 is incorrect. Therefore, the correct answer is option B) 1 only.
This statement is correct. The Government of India has the authority to borrow funds as specified by the Parliament. The borrowing can be both from domestic and external sources. The government borrows funds to finance its expenditure and meet its financial obligations. The borrowing is done through the issuance of government securities such as treasury bills, bonds, and loans from institutions like the Reserve Bank of India.
Statement 2: Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.
This statement is incorrect. While the Department of Economic Affairs is responsible for managing the debt and liabilities of the central government, it does not deal with the debt and liabilities management of states. The debt and liabilities management of states is the responsibility of the respective state governments. The Department of Economic Affairs also plays a role in the enforcement of the fiscal roadmap mandated by the Finance Commissions, but this is primarily for the central government.
Statement 3: The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.
This statement is incorrect. The share of loans and advances from the Centre in the composition of State Government liabilities has actually decreased since 1991. Prior to 1991, the central government used to provide a significant portion of the funds to the states in the form of loans and advances. However, with the introduction of economic reforms in 1991, the emphasis shifted towards fiscal decentralization and states were encouraged to raise their own resources. As a result, the share of loans and advances from the Centre in the composition of State Government liabilities has decreased over the years.
In conclusion, statement 1 is correct, statement 2 is incorrect, and statement 3 is incorrect. Therefore, the correct answer is option B) 1 only.
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Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with respect to the central and state finances:1. The Government of India can borrow amounts specified by the Parliament from time to time.2. Department of Economic Affairs deals with Debt and liabilities management of States and enforcement of the fiscal roadmap mandated by Finance Commissions.3. The share of loans and advances from the Centre in the composition of State Government liabilities has increased since 1991.Which of the statements given above is/are correct?a)1 and 2 onlyb)1 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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