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What was the rationale behind the abolition of Privy Purse in India?
  • a)
    To increase revenue for the government
  • b)
    To strengthen the power of the rulers
  • c)
    To promote equality and social justice
  • d)
    To support foreign investment
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What was the rationale behind the abolition of Privy Purse in India?a)...
The rationale behind the abolition of Privy Purse in India was to promote equality and social justice. The Privy Purse was a fixed annual payment made to the former rulers of princely states in India after the country gained independence in 1947. This payment was granted to them as a compensation for the loss of their ruling powers and privileges. However, the abolition of Privy Purse was seen as a necessary step towards achieving a more egalitarian society.

Promoting Equality and Social Justice:
1. Ending Feudalistic Practices:
- The Privy Purse system was seen as a remnant of the feudalistic practices prevalent in the princely states.
- It created a hierarchical society where a privileged few received substantial payments simply due to their lineage and historical positions of power.
- The abolition of Privy Purse aimed to dismantle this feudalistic structure and create a more equitable society.

2. Ensuring Equal Treatment:
- The Privy Purse system created a distinction between the former rulers and the common citizens.
- It was viewed as a form of special treatment given to the erstwhile royalty while the general population did not receive similar benefits.
- Abolishing the Privy Purse was seen as a step towards ensuring equal treatment for all citizens irrespective of their social status or historical positions.

3. Redistributing Resources:
- The Privy Purse payments were a significant burden on the Indian economy, as a substantial amount of public funds were allocated for this purpose.
- By abolishing the Privy Purse, the government aimed to reallocate these resources towards developmental projects and welfare schemes that would benefit the entire population.
- This move was seen as a way to address the socio-economic disparities and uplift marginalized sections of society.

4. Symbolic Importance:
- The abolition of the Privy Purse was also symbolic of the end of the princely states and the consolidation of India as a democratic republic.
- It represented a shift towards a more inclusive and egalitarian society where privileges were not granted solely based on birthright.

In conclusion, the abolition of Privy Purse in India was driven by the objective of promoting equality and social justice. It aimed to dismantle feudalistic practices, ensure equal treatment for all citizens, redistribute resources for development, and symbolize the end of the princely states.
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What was the rationale behind the abolition of Privy Purse in India?a)...
The abolition of Privy Purse in India was based on the rationale to promote equality and social justice, as it was seen as a privilege that contradicted these principles laid down in the Indian Constitution.
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Passage 2After the end of World War II, a pervasive, but unfortunately fallacious, economic perspective took hold. Based on the United States successful emergence from the Depression, the idea that war was good for an economy became fashionable. However, linking the United States economic recovery with its entry into World War II is a prime example offlawed economic thinking.Supporters of the war benefits economy theory hold that a country at war is a country with a booming economy. Industry must produce weapons, supplies, food, and clothing for the troops. The increased production necessitates the hiring of more people, reducing unemployment. More employment means more money in the pockets of citizens, who are then likely to go out and spend that money, helping the retail sector of the economy. Retail shops experience an increase in business and may need to hire more workers, further reducing unemployment and adding to the economic momentum. While this scenario sounds good in theory, it does not accurately represent what truly happens in a war time economy.In reality, the government can fund a war in a combination of three ways. It can raise taxes, cut spending on other areas, or increase the national debt. Each of these strategies has a negative impact on the economy. An increase in taxes takes money out of an individuals hands, leading to a reduction in consumer spending.Clearly, there is no net benefit to the economy in that case. Cutting spending in other areas has its costs as well, even if they are not as obvious.Any reduction in government spending means the imposition of a greater burden on the benefactors of that government spending. Cutbacks in a particular program mean that the people who normally depend on that program now must spend more of their money to make up for the government cuts. This also takes money out of consumers hands and leaves the economy depressed. Of course, a government could go into debt during the war, but such a strategy simply means that at some point in the future, taxes must be increased or spending decreased. Plus, the interest on the debt must be paid as well.Q. The passage implies which of the following about a government that funds a war by increasing the national debt?

Passage 2After the end of World War II, a pervasive, but unfortunately fallacious, economic perspective took hold. Based on the United States successful emergence from the Depression, the idea that war was good for an economy became fashionable. However, linking the United States economic recovery with its entry into World War II is a prime example offlawed economic thinking.Supporters of the war benefits economy theory hold that a country at war is a country with a booming economy. Industry must produce weapons, supplies, food, and clothing for the troops. The increased production necessitates the hiring of more people, reducing unemployment. More employment means more money in the pockets of citizens, who are then likely to go out and spend that money, helping the retail sector of the economy. Retail shops experience an increase in business and may need to hire more workers, further reducing unemployment and adding to the economic momentum. While this scenario sounds good in theory, it does not accurately represent what truly happens in a war time economy.In reality, the government can fund a war in a combination of three ways. It can raise taxes, cut spending on other areas, or increase the national debt. Each of these strategies has a negative impact on the economy. An increase in taxes takes money out of an individuals hands, leading to a reduction in consumer spending.Clearly, there is no net benefit to the economy in that case. Cutting spending in other areas has its costs as well, even if they are not as obvious.Any reduction in government spending means the imposition of a greater burden on the benefactors of that government spending. Cutbacks in a particular program mean that the people who normally depend on that program now must spend more of their money to make up for the government cuts. This also takes money out of consumers hands and leaves the economy depressed. Of course, a government could go into debt during the war, but such a strategy simply means that at some point in the future, taxes must be increased or spending decreased. Plus, the interest on the debt must be paid as well.Q. Which of the following situations best mirrors the effect that cutting spending in government programs has, as detailed in the passage?

What was the rationale behind the abolition of Privy Purse in India?a)To increase revenue for the governmentb)To strengthen the power of the rulersc)To promote equality and social justiced)To support foreign investmentCorrect answer is option 'C'. Can you explain this answer?
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