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If the Government set-up a dedicated non-lapsable fund for Defence and Internal Security, it can receive funds to it from which of the following sources
1. Consolidated Fund of India
2. Proceeds from the monetisation of surplus defence land
3. Disinvestment proceeds of Defence Public Sector Undertakings.
Select the correct answer code:
  • a)
    1, 2
  • b)
    1, 3
  • c)
    2, 3
  • d)
    1, 2, 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
If the Government set-up a dedicated non-lapsable fund for Defence and...
To bridge the gap between projected budgetary requirements and budget allocation for defence and internal security and to provide greater predictability for enabling critical defence capital expenditure, the Commission has recommended setting up of a dedicated non-lapsable fund, the Modernisation Fund for Defence and Internal Security (MFDIS), with four specific sources: (a) Transfers from the Consolidated Fund of India, (b) disinvestment proceeds of DPSEs, (c) proceeds from the monetisation of surplus defence land and (d) proceeds of receipts from defence land likely to be transferred to state governments and for public projects in the future.
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If the Government set-up a dedicated non-lapsable fund for Defence and Internal Security, it can receive funds to it from which of the following sources1. Consolidated Fund of India2. Proceeds from the monetisation of surplus defence land3. Disinvestment proceeds ofDefence Public Sector Undertakings.Select the correct answer code:a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?
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