UPSC IAS Archives

21. Which of the following is/are included in the capital budget of the Go

Which of the following is/are included in the capital budget of the Government of India?

1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

Join Our Telegram Channel

1 only

2 and 3 only

1 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

The correct answer is D) 1, 2 and 3. All three statements are included in the capital budget of the Government of India.

– The capital budget comprises capital receipts and capital expenditure.
– Capital receipts include loans received from foreign governments and borrowings from the public.
– Capital expenditure includes expenditure on the acquisition of assets like land, buildings, machinery, and equipment, as well as loans and advances granted by the central government to state governments, union territories, and public sector undertakings.

The budget of the Government of India is divided into Revenue Budget and Capital Budget. The Revenue Budget deals with revenue receipts and revenue expenditure, which do not affect the asset/liability status of the government. The Capital Budget deals with capital receipts and capital expenditure, which create assets or liabilities for the government.

22. In the context of which of the following -do-you- sometimes-find the t

In the context of which of the following -do-you- sometimes-find the terms ‘amber box, blue box and green box’ in the news?

WTO affairs

SAARC affairs

UNFCCC affairs

India-EU negotiations on FTA

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

The terms ‘amber box’, ‘blue box’, and ‘green box’ are specific classifications used within the framework of the World Trade Organization (WTO), particularly in the context of the Agreement on Agriculture (AoA).

These terms categorize different types of domestic support (subsidies) provided by governments to their agricultural sectors, based on their potential to distort trade.
* **Green Box:** Refers to subsidies that are considered to have minimal or no distorting effects on trade. These are generally allowed without limits (e.g., government services like research, disease control, infrastructure, food security stocks, direct income support to farmers decoupled from production).
* **Amber Box:** Refers to domestic support measures that are considered to distort production and trade. Members committed to reducing these subsidies from a defined baseline.
* **Blue Box:** Refers to subsidies that are linked to programmes that limit production. While they are production-limiting, they are still considered potentially trade-distorting but less so than Amber Box measures. They are exempt from reduction commitments but subject to certain criteria.

These classifications and the rules surrounding them are central to negotiations and disputes related to agricultural subsidies under the WTO. Options B, C, and D are incorrect as these specific terms are defined and used within the WTO framework.

Join Our Telegram Channel

23. Which one of the following books of ancient India has the love story o

Which one of the following books of ancient India has the love story of the son of the founder of Sunga dynasty?

Join Our Telegram Channel

Swapnavasavadatta

Malavikagnimitra

Meghadoota

Ratnavali

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

The Sunga dynasty was founded by Pushyamitra Sunga after overthrowing the Mauryan dynasty. His son and successor was Agnimitra. The love story of Agnimitra is the subject of a famous Sanskrit play.

The Sanskrit playwright Kalidasa wrote the play ‘Malavikagnimitra’ (meaning ‘Malavika and Agnimitra’). This play narrates the love story of King Agnimitra of Vidisha (son of Pushyamitra Sunga) and Malavika, a beautiful maiden who works as a servant in his palace.

Let’s look at the other options:
A) Swapnavasavadatta: A play by Bhasa, dealing with the story of King Udayana of Vatsa and his queen Vasavadatta.
C) Meghadoota: A lyric poem by Kalidasa, where a Yaksha sends a message to his beloved through a cloud. It does not feature the son of the Sunga founder.
D) Ratnavali: A play by Harshavardhana, also dealing with the story of King Udayana and his queen Ratnavali.
Therefore, ‘Malavikagnimitra’ is the correct book.

24. Regarding the taxation system of Krishna Deva, the ruler of Vijayanaga

Regarding the taxation system of Krishna Deva, the ruler of Vijayanagar, consider the following statements :

1. The tax rate on land was fixed depending on the quality of the land.
2. Private owners of workshops paid an industries tax.

Which of the statements given above is/are correct?

Join Our Telegram Channel

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

The Vijayanagar empire, particularly during the reign of Krishna Deva Raya, had a sophisticated administrative and taxation system designed to generate revenue for the state while ensuring the welfare of the people and promoting economic activities.

Let’s evaluate each statement based on historical accounts of the Vijayanagar Empire:
1. **The tax rate on land was fixed depending on the quality of the land:** Land revenue was the principal source of income for the Vijayanagar state. Historical sources, including accounts by foreign visitors like Domingo Paes and Fernao Nuniz, indicate that land was classified based on its fertility, irrigation facilities, and type of crop cultivated. The tax rate varied accordingly, ensuring a more equitable system where better quality land with higher productivity paid more tax. This statement is correct.
2. **Private owners of workshops paid an industries tax:** Besides land revenue, the state levied various other taxes, known as “professional taxes” or taxes on trades and industries. These included taxes on workshops, merchants, artisans, and other professionals. This tax was imposed on the income or output of these activities. This statement is correct.

Other sources of revenue included taxes on trade, customs duties, taxes on gardens and forests, taxes on social functions, and tributes from subordinate rulers. The state also maintained monopolies over certain industries. The taxation system was generally considered heavy but efficiently collected.

25. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, whic

With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

1. The International Finance Corpora- tion, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term ‘Masala Bonds’ generally refers to rupee-denominated bonds issued outside India.

Let’s evaluate each statement:
1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them “Masala Bonds”.
2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.

Issuing bonds in INR helps Indian companies hedge against currency fluctuations when borrowing from abroad. The name ‘Masala Bonds’ was given by IFC to give a local flavour, similar to how Yen-denominated bonds issued outside Japan are called ‘Samurai bonds’ or Yuan-denominated bonds outside China are called ‘Dim Sum bonds’.

Join Our Telegram Channel

26. Which one of the following is a purpose of ‘UDAY’, a scheme of the

Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

Providing technical and financial assistance to start-up entre- preneurs in the field of renewable sources of energy

Providing electricity to every household in the country by 2018

Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

Providing for financial turnaround and revival of power distribution companies

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

UDAY stands for Ujwal DISCOM Assurance Yojana. It is a scheme launched by the Government of India aimed at the financial and operational turnaround of Power Distribution Companies (DISCOMs).

State-owned power distribution companies in India have historically suffered from significant financial losses and debt, primarily due to AT&C (Aggregate Technical and Commercial) losses and tariffs not covering the cost of supply. The UDAY scheme provides a framework for states to take over a portion of their DISCOMs’ debt, and for operational improvements to reduce losses and improve efficiency.

Option A relates more to schemes like Startup India or specific renewable energy promotion schemes. Option B relates to the Saubhagya scheme (Pradhan Mantri Sahaj Bijli Har Ghar Yojana). Option C relates to energy policy and transition towards cleaner sources but is not the specific purpose of UDAY. UDAY’s core focus is on resolving the financial distress of DISCOMs to ensure the sustainability of the power sector chain.

Join Our Telegram Channel

27. The term ‘Intended Nationally Deter- mined Contributions’ is sometimes

The term ‘Intended Nationally Deter- mined Contributions’ is sometimes seen in the news in the context of

pledges made by the European countries to rehabilitate refugees from the war-affected Middle East

plan of action outlined by the countries of the world to combat climate change

capital contributed by the member countries in the establishment of Asian Infrastructure Investment Bank

plan of action outlined by the countries of the world regarding Sustainable Development Goals

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

The term ‘Intended Nationally Determined Contributions’ (INDCs) is directly related to the international efforts to address climate change under the United Nations Framework Convention on Climate Change (UNFCCC).

INDCs were commitments made by countries in the lead-up to the 2015 Paris Agreement. They represent each country’s plan of action outlining the steps they intend to take to reduce greenhouse gas emissions and adapt to the impacts of climate change. The Paris Agreement built upon INDCs, requiring countries to submit Nationally Determined Contributions (NDCs) and update them every five years.

Option A is incorrect as INDCs are related to climate action, not refugee rehabilitation. Option C is incorrect as AIIB capital contributions are related to financial institutions, not climate change commitments. Option D is incorrect as while climate action contributes to Sustainable Development Goals (SDGs), INDCs/NDCs are specifically the climate action pledges under the UNFCCC, distinct from the broader SDG framework.

Join Our Telegram Channel

28. With reference to ‘LiFi’, recently in the news, which of the following

With reference to ‘LiFi’, recently in the news, which of the following statements is/are correct?

Join Our Telegram Channel

It uses light as the medium for high-speed data transmission.
It is a wireless technology and is several times faster than ‘WiFi’.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

LiFi (Light Fidelity) is a cutting-edge wireless communication technology that uses visible light spectrum for data transmission, similar to how WiFi uses radio waves. It was coined by Harald Haas from the University of Edinburgh.

Let’s analyze each statement:
1. **It uses light as the medium for high-speed data transmission:** LiFi utilizes Visible Light Communication (VLC) technology, where data is transmitted by modulating the intensity of light emitted by LEDs. The rapid flickering of LEDs is undetectable to the human eye but can be interpreted by a light sensor to decode data. This statement is correct.
2. **It is a wireless technology and is several times faster than ‘WiFi’:** LiFi is indeed a wireless technology, similar to WiFi, but uses light waves instead of radio waves. Due to the vast bandwidth available in the visible light spectrum compared to the radio spectrum, LiFi has the potential to offer significantly higher data transfer speeds than conventional WiFi. Lab tests and demonstrations have shown speeds multiple times faster than typical WiFi speeds. This statement is correct.

LiFi has potential applications in areas where radio frequency interference is a concern (e.g., aircraft cabins, hospitals) or where high-density data usage is required. However, its main limitation is that light cannot penetrate opaque objects, meaning it is typically confined to line-of-sight or within a specific room.

29. The establishment of ‘Payment Banks’ is being allowed in India to prom

The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
Payment Banks can issue both credit cards and debit cards.
Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below.

1 and 2 only

1 and 3 only

2 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances.

Let’s evaluate each statement:
1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct.
2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect.
3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments/remittances. This statement is correct.

Payment Banks can accept demand deposits up to a certain limit per individual customer (initially ₹1 lakh, later increased). They can facilitate domestic remittances and payments, provide internet banking and mobile banking. They must maintain a certain percentage of their deposits in government securities and other approved instruments.

Join Our Telegram Channel

30. There has been a persistent deficit budget year after year. Which acti

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

Join Our Telegram Channel

Reducing revenue expenditure
Introducing new welfare schemes
Rationalizing subsidies
Reducing import duty

Select the correct answer using the code given below.

1 and 2

1 and 3

2 only

1, 2 and 4

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

Download PDF Attempt Online

A persistent deficit budget means that the government’s total expenditure exceeds its total receipts (excluding borrowings) year after year, leading to an increase in public debt. To reduce this deficit, the government needs to either increase its revenue or decrease its expenditure.

Let’s analyze each action:
1. **Reducing revenue expenditure:** Revenue expenditure includes government spending on salaries, pensions, interest payments, subsidies, etc., which do not create assets. Reducing these items directly lowers total government expenditure, thus helping to reduce the fiscal deficit. This action is correct.
2. **Introducing new welfare schemes:** Welfare schemes involve government spending, typically revenue expenditure (e.g., subsidies, direct benefit transfers). Introducing new schemes increases government expenditure, which would likely increase the fiscal deficit, not reduce it. This action is incorrect.
3. **Rationalizing subsidies:** Subsidies are a significant part of government expenditure. Rationalizing subsidies (e.g., by targeting them better, reducing their amount, or phasing them out) reduces government expenditure, thus helping to reduce the fiscal deficit. This action is correct.
4. **Reducing import duty:** Import duties (customs duties) are a source of tax revenue for the government. Reducing import duties would decrease government revenue (unless the reduction stimulates imports so much that the volume effect outweighs the rate reduction, which is not guaranteed), thus increasing the fiscal deficit. This action is incorrect.

Therefore, actions 1 (Reducing revenue expenditure) and 3 (Rationalizing subsidies) are effective ways for the government to reduce a budget deficit. Other measures to reduce the deficit could include increasing tax rates, improving tax collection efficiency, divesting from public sector undertakings, etc.