UPSC 2010 › Indian Economy › Fiscal Policy & Budget

5 questions · 2010 · answers as per the UPSC key

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UPSC 2010 · Q26 · Indian Economy › Fiscal Policy & Budget · Save

Which one of the following was NOT stipulated in the Fiscal Responsibility and Budget Management Act, 2003?

(a) Elimination of revenue deficit by the end of the fiscal year 2007-08
(b) Non-borrowing by the Central Government from Reserve Bank of India except under certain circumstances
(c) Elimination of primary deficit by the end of the fiscal year 2008-09
(d) Fixing government guarantees in any financial year as a percentage of GDP
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Answer: (c) Elimination of primary deficit by the end of the fiscal year 2008-09
UPSC 2010 · Q67 · Indian Economy › Fiscal Policy & Budget · Save

In the context of governance, consider the following :

  1. Encouraging Foreign Direct Investment inflows
  2. Privatization of higher educational Institutions
  3. Down-sizing of bureaucracy
  4. Selling/off-loading the shares of Public Sector Undertakings

Which of the above can be used as measures to control the fiscal deficit in India ?

(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 2 and 4
(d) 3 and 4 only
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Answer: (b) 2, 3 and 4
UPSC 2010 · Q77 · Indian Economy › Fiscal Policy & Budget · Save

Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?

(a) Department of Revenue
(b) Department of Economic Affairs
(c) Department of Financial Services
(d) Department of Expenditure
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Answer: (b) Department of Economic Affairs
UPSC 2010 · Q79 · Indian Economy › Fiscal Policy & Budget · Save

Consider the following actions by the Government:

  1. Cutting the tax rates
  2. Increasing the government spending
  3. Abolishing the subsidies In the context of economic recession, which of the above actions can be considered a part of the "fiscal stimulus" package?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Answer: (a) 1 and 2 only
UPSC 2010 · Q134 · Indian Economy › Fiscal Policy & Budget · Save

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements :

  1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
  2. The National Investment Fund is to be maintained within the Consolidated Fund of India.
  3. Certain Asset Management Companies are appointed as the fund managers.
  4. A certain proportion of annual income is used for financing select social sectors.

Which of the statements given above is/are correct ?

(a) 1 and 2
(b) 2 only
(c) 3 and 4
(d) 3 only
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Answer: (c) 3 and 4