UPSC 2011 › Indian Economy › Fiscal Policy & Budget
3 questions · 2011 · answers as per the UPSC key
UPSC 2011 · Q8 · Indian Economy › Fiscal Policy & Budget · Save
Which one of the following statements appropriately describes the “fiscal stimulus”?
(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
(b) It is an intense affirmative action of the Government to boost economic activity in the country
(c) It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(d) It is an extreme affirmative action by the Government to pursue its policy of financial inclusion
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Answer: (b) It is an intense affirmative action of the Government to boost economic activity in the country
UPSC 2011 · Q74 · Indian Economy › Fiscal Policy & Budget · Save
What is the difference between "vote-on-account" and "interim budget"?
- The provision of a "vote-on-account" is used by a regular Government, while an "interim budget" is a provision used by a caretaker Government.
- A "vote-on-account" only deals with the expenditure in Government's budget, while an "interim budget" includes both expenditure and receipts.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (b) 2 only
UPSC 2011 · Q85 · Indian Economy › Fiscal Policy & Budget · Save
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
- The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
- The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (d) Neither 1 nor 2