Finance Commission transfers and equity issue

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 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?

1. A. 1 only
2. B. 2 and 3 only
3. C. 1 and 3 only
4. D. 1, 2 and 3

Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?

I. It has recommended grants of ₹4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes.
II. 45% of the net proceeds of Union taxes are to be shared with States.
III. ₹45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.
IV. It reintroduced tax effort criteria to reward fiscal performance.

Select the correct answer using the code given below.

1. A. I, II and III
2. B. I, II and IV
3. C. I, III and IV
4. D. II, III and IV

Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

1. A. Only two
2. B. Only three
3. C. Only four
4. D. All five

With reference to ‘Urban Cooperative Banks’ in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

1. A. 1 only
2. B. 2 and 3 only
3. C. 1 and 3 only
4. D. 1, 2 and 3

The sales tax you pay while purchasing a toothpaste is a

1. A. tax imposed by the Central Government.
2. B. tax imposed by the Central Government but collected by the State Government
3. C. tax imposed by the State Government but collected by the Central Government
4. D. tax imposed and collected by the State Government

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

1. A. Diversion of resources to the purchase of real estate and investment in luxury housing.
2. B. Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.
3. C. Large donations to political parties and growth of regionalism.
4. D. Loss of revenue to the State Exchequer due to tax evasion.

With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
1. It has increased the share of States in the central divisible pool from 32 per cent to 42 per cent
2. It has made recommendations concerning sector-specific grants

1. A. 1 only
2. B. 2 only
3. C. Both 1 and 2
4. D. Neither 1 nor 2

Consider the following pairs:

State – Description
I. Arunachal Pradesh : The capital is named after a fort, and the State has two National Parks.
II. Nagaland : The State came into existence on the basis of a Constitutional Amendment Act.
III. Tripura : Initially a Part 'C' State, it became a centrally administered territory with the reorganization of States in 1956 and later attained the status of a full-fledged State.

How many of the above pairs are correctly matched?

1. A. Only one
2. B. Only two
3. C. All the three
4. D. None

Along with the Budget, the Finance Minister also places other documents before the Parliament which include “The Macro Economic Framework Statement”. The aforesaid document is presented because this is mandated by

1. A. Long standing parliamentary convention
2. B. Article 112 and Article 1101 of the Constitution of India
3. C. Article 113 of the Constitution of India
4. D. Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Consider the following statements:

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

1. A. 1 and 2 only
2. B. 3 Only
3. C. 2 and 3 only
4. D. 1, 2 and 3

The National Commission for Protection of Child Rights has to address the challenges faced by children in the digital era. Examine the existing policies and suggest measures the Commission can initiate to tackle the issue.

"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.

What are environmental pressure groups? Discuss their role in raising awareness, influencing policies and advocating for environmental protection in India.

Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

Discuss the evolution of collegium system in India. Critically examine the advantages and disadvantages of the system of appointment of the Judges of the Supreme Court of India and that of the USA.

Indian Constitution has conferred the amending power on the ordinary legislative institutions with a few procedural hurdles. In view of this statement, examine the procedural and substantive limitations on the amending power of the Parliament to change the Constitution.