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Consider the following statements
1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
[2018]
  • a)
    1 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements1. The Fiscal Responsibility and Budg...

Explanation:

Statement 1: The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report
- The FRBM Review Committee Report has indeed recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, with 40% for the Central Government and 20% for the State Governments. This is aimed at maintaining fiscal discipline and sustainability in government finances.

Statement 2: Domestic liabilities of the Central and State Governments
- The Central Government has domestic liabilities of 21% of GDP, whereas the State Governments have domestic liabilities amounting to 49% of GDP. This shows a significant difference in the debt burden between the Central and State Governments.

Statement 3: State's requirement of Central Government's consent for raising loans
- As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. This is in line with the principles of cooperative federalism and ensures coordination in financial matters between the Central and State Governments.

Therefore, considering the above explanations, statements 1 and 3 are correct. Statement 2 is not accurate as the Central Government has lower domestic liabilities compared to the State Governments.
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Community Answer
Consider the following statements1. The Fiscal Responsibility and Budg...
As per Economic Survey, first statement is right but Central Government's domestic liability is ~46% so #2 is wrong. By elimination, we get (C)
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Consider the following statements1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.3. As per the Constitution of India, it is mandatory for a State to take the Central Governments consent for raising any loan if the former owes any outstanding liabilities to the latter.Which of the statements given above is/are correct?[2018]a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.3. As per the Constitution of India, it is mandatory for a State to take the Central Governments consent for raising any loan if the former owes any outstanding liabilities to the latter.Which of the statements given above is/are correct?[2018]a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. 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 statements1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.3. As per the Constitution of India, it is mandatory for a State to take the Central Governments consent for raising any loan if the former owes any outstanding liabilities to the latter.Which of the statements given above is/are correct?[2018]a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. 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 statements1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.3. As per the Constitution of India, it is mandatory for a State to take the Central Governments consent for raising any loan if the former owes any outstanding liabilities to the latter.Which of the statements given above is/are correct?[2018]a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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