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Indian Economy Quiz for IAS Prelims Exam 2017: Government Schemes

Apr 10, 2017 19:09 IST

Government Schemes Base QuizIn this article, we have created multiple choice questions based on the government policies such as the E-Bhoomi project, the Bargadar system, the Pradhan Mantri Fasal Bima Yojana, nutrient based subsidy policy, the genetically modified seed varieties and the Mega Food Parks scheme.

The given questions are very important for IAS Prelims Exam and the IAS aspirants should study all the schemes sincerely before the IAS Exam.

Indian Economy Quiz for IAS Prelims Exam 2017- Public Finance in India II

1. The E-Bhoomi project was started by the Government of Karnataka in the early 2000s. Consider the following statements regarding the E-Bhoomi project:
I. The project aims to computerize existing land records and create a transparent system for changing land records and dividing or merging plots of land.
II. Under the system, farmers can collect land record information for their plot at the Tehsil level, called Pahani.

Which of the following statement(s) is/are correct?
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II

Answer: c

Explanation:

The E-Bhoomi project was an ambitious initiative started by the Government of Karnataka in the early 2000s. The project aims to computerize existing land records and create a transparent system for changing land records and dividing or merging plots of land. Under the system, farmers can collect land record information for their plot at the Tehsil level, called Pahani. These records would contain information such as the survey number of the land, land owner’s details, the classification of the soil, and details regarding irrigation and crops grown, among others. The Pahani would enable the farmer:

• To know whether the plot he wants to purchase is genuine,

• To raise farm credit from banks,

• To use the land records for official or legal purposes.

E-Bhoomi also allows farmers to approach the government to address grievances.

Indian Economy Quiz for IAS Prelims Exam 2017- Public Finance in India I

2. Bargadar are persons lawfully cultivating any land belonging to another person. The Bargadar system was part of Land Reform Act of which of the following states of India?
a. Maharashtra
b. West Bengal
c. Bengal
d. Uttar Pradesh

Answer: b

Explanation:

The West Bengal Land Reforms Act, 1955 provides certain rights to Bargadars or land tenants. Bargadars are persons lawfully cultivating any land belonging to another person (who is not a family member). Under the Act, produce from the farm is divided between the tenant and owner in a 50:50 proportion if the cattle, manure and seeds are provided by the landowner, and 75:25 in all other cases. Illegal eviction of tenants is a cognizable offence punishable with imprisonment or fine, under the Act. However, it does not provide any ownership rights to the tenant.

Indian Economy IAS Questions- Goods and Services Tax (GST)

3. The Pradhan Mantri Fasal Bima Yojana was launched by the central government in January 2016. Consider the following statements regarding the Pradhan Mantri Fasal Bima Yojana:
I. The Pradhan Mantri Fasal Bima Yojana aims to provide insurance coverage to farmers for crop failure, stabilise farmers’ income, and encourage farmers to adopt modern agricultural practices, among others.
II. The scheme has been allocated Rs 9,000 crore in the Union Budget 2017-18, compared to Rs 5,501 crore in 2016-17.
III. It covers crops such as cereals, pulses, oilseeds, vegetables, and spices.

Which of the following statement(s) is/are correct?
a. Only I
b. I and II
c. II and III
d. All of the above

Answer: d

Explanation:

The Pradhan Mantri Fasal Bima Yojana was launched by the central government in January 2016. The scheme aims to provide insurance coverage to farmers for crop failure, stabilise farmers’ income, and encourage farmers to adopt modern agricultural practices, among others. The scheme has been allocated Rs 9,000 crore in the Union Budget 2017-18, compared to Rs 5,501 crore in 2016-17. The scheme covers all farmers, including tenant farmers and sharecroppers, who are growing notified crops in notified areas. It covers crops such as cereals, pulses, oilseeds, vegetables, and spices. As of December 2016, the scheme has covered 367 lakh farmers for a sum of Rs 1,41,625 crore in the Kharif season of 2016, as compared to 309 lakh farmers and a sum of Rs 69,307 crore in the Kharif season of 2015.

IAS Prelims Questions - Tax structure in India

4. The nutrient based subsidy policy was launched by the Central Government for Phosphorous and Potassium fertilisers. Consider the following statements regarding the Nutrient based subsidy policy:
I. The policy was formulated with the objective of promoting a balanced use of N, P and K fertilizers.
II. The policy allowed the manufacturers of P and K fertilizers to fix their maximum retail prices (MRPs) at reasonable levels.
III. The Comptroller and Auditor General of India, in its report on the performance of the NBS policy stated that in the five years since its implementation, the policy had succeeded in bringing about a balanced use of fertilizers.

Which of the following statement(s) is/are correct?
a. Only I
b. I and II
c. II and III
d. All of the above

Answer: b

Explanation:

The central government launched the nutrient based subsidy policy (NBS) in 2010 for P and K fertilizers. The policy was formulated with the objective of promoting a balanced use of N, P and K fertilizers. The policy allowed the manufacturers of P and K fertilizers to fix their maximum retail prices (MRPs) at reasonable levels. The subsidy provided would be based on per kilogram of the nutrient.

The policy also provided for an additional subsidy to be paid to indigenous manufacturers of fertilizers. The Comptroller and Auditor General of India, in its report on the performance of the NBS policy stated that in the five years since its implementation, the policy had not succeeded in bringing about a balanced use of fertilizers. The fertilizer usage ratio of urea increased from 4.3 in 2009-10 to 8.2 in 2012-13.

ECONOMIC SURVEY 2016-17

5. Under the existing regulatory process, the Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change, approves proposals for the commercial use of GM seeds. Consider the following statements regarding the genetically modified seed varieties in India:
I. Bt cotton is currently the only approved GM technology seed in India which was adopted in India in 2002.
II. Over the years, various GM crops such as Bt Brinjal have been developed and they have also received the regulatory approval to be released in Indian markets.
III. After releasing Bt cotton in the country, the crop’s yield increased from 190 kg/ha in 2000-01 to 461 kg/ha in 2014-15.

Which of the following statement(s) is/are correct?
a. Only I
b. II and II
c. I and III
d. All of the above

Answer: c

Explanation:

Genetically modified (GM) seeds are those where certain genes are modified to develop traits such as a resistance to pests and herbicide, and increased productivity. Bt cotton is currently the only approved GM technology seed in India. It was adopted in India in 2002 and as of 2014, 92% of the area covered by cotton uses Bt cotton. After releasing Bt cotton in the country, the crop’s yield increased from 190 kg/ha in 2000-01 to 461 kg/ha in 2014-15.

Over the years, various GM crops such as Bt Brinjal have been developed, but they have not received the regulatory approval to be released in Indian markets. Under the existing regulatory process, the Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change, approves proposals for the commercial use of GM seeds. In September 2016, the GEAC invited public comments on a report authorising the environmental release of GE mustard. The Ministry of Environment is yet to provide the final approval for GE mustard to be released commercially.

6. The Mega Food Parks scheme was launched by the Ministry of Food Processing Industries in 2008. Consider the following statements regarding the Mega Food Parks scheme:
I. The scheme aims to create food parks where the farmers can get instructions and knowledge regarding better varieties of seeds.
II. Under the scheme, the MSPs of various crops have decided after the consultation of farmer's Union.

Which of the following statement(s) is/are correct?
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II

Answer: c

Explanation:

The Mega Food Parks scheme was launched by the Ministry of Food Processing Industries in 2008. The scheme aims to create a mechanism of linking agricultural production to the markets, by involving farmers, processors and retailers together in a cluster-based approach. Expected outcomes of the scheme would be a higher price for farmers from their produce, creation of high quality food processing infrastructure, reduction in food wastage, and creation of an efficient food supply chain, among others.

The scheme is being implemented through a Special Purpose Vehicle set up under the Companies Act, 2013. As of July 2016, 42 mega food parks were sanctioned by the Ministry, of which 38 have been approved for implementation and 8 are operational.

7. India enacted the National Food Security Act in 2013. Consider the following statements regarding the National Food Security Act 2013:
I. The National Food Security Act 2013 Act aims to provide food and nutritional security to people by ensuring access to adequate amount of quality food at affordable prices.
II. Under the National Food Security Act 2013, persons belonging to certain categories are provided with food grains (wheat, rice and coarse cereals) at subsidised prices.

Which of the following statement(s) is/are correct?
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II

Answer: c

Explanation:

Besides providing for the livelihood of farmers and labourers, the agricultural sector also addresses food security for the nation. The Food and Agricultural Organisation (FAO) of the United Nations defines food security as a situation where all people have, at all times, physical and economic access to sufficient, safe and nutritious food that meets the dietary needs and food preferences for a healthy and active life. Despite high levels of production in the country, 15% of the population continues to be under-nourished, as per 2014 estimates.

India enacted the National Food Security Act in 2013. The 2013 Act aims to provide food and nutritional security to people by ensuring access to adequate amount of quality food at affordable prices. Under the 2013 Act, persons belonging to certain categories are provided with food grains (wheat, rice and coarse cereals) at subsidised prices. As of 2015, 68% of the population, i.e. 81 crore persons (of which 77% are in rural areas and 23% in urban areas) are covered under the Act.

Current Affairs Quizzes for IAS Prelims 2017- January 2017

8. NITI Aayog has proposed a Model Land Leasing Law to provide for the legalisation of land leasing. Consider the following statements regarding the proposed Model Land Leasing Law:
I. The Model Land Leasing Law would ensure that land owners have the security of ownership rights, and land tenants are secure in their tenancy.
II. Legalisation of land tenancy would also ensure that farmers get access to formal credit, insurance, and inputs such as fertilizers.
III. Only Madhya Pradesh has adopted the Model land leasing law so far.

Which of the following statement(s) is/are correct?
a. Only I
b. II and II
c. I and III
d. All of the above

Answer: c

Explanation:

Currently, laws of tenancy of agricultural land vary across different states. States such as Kerala, Jammu and Kashmir and Manipur completely prohibit the leasing of agricultural land. Others such as Bihar, Karnataka, Uttar Pradesh, Telangana and Odisha allow land leasing only by certain categories of land owners. On the other hand, states such as Gujarat, Maharashtra, and Assam do not explicitly prohibit leasing, and allow the tenant to purchase the land from the owner after a specified period of tenancy. In Andhra Pradesh, Tamil Nadu and West Bengal, there is no legal ban on leasing land. Different states also have different ceilings on the area of land which may be leased.

The NITI Aayog has proposed a Model Land Leasing Law to provide for the legalisation of land leasing. This would ensure that land owners have the security of ownership rights, and land tenants are secure in their tenancy. Legalisation of land tenancy would also ensure that farmers get access to formal credit, insurance, and inputs such as fertilizers. Only Madhya Pradesh has adopted the Model land leasing law so far.

9. The central government had released a Model APMC Act in 2003, to be enacted by states. Consider the following statements regarding the Model APMC Act 2003:
I. The Model APMC Act provides for the direct selling of produce through contract farming.
II. The Model Act permits private persons, farmers and consumers to establish agricultural markets.
III. The Model Act levies a multiple market fee on the sale of the commodity.

Which of the following statement(s) is/are correct?
a. Only I
b. II and II
c. I and III
d. All of the above

Answer: c

Explanation:

The central government had released a Model APMC Act in 2003, to be enacted by states. The Model Act

• provides for the direct selling of produce through contract farming,

• permits private

• persons, farmers and consumers to establish agricultural markets,

• levies a single market fee on the sale of the commodity, and

• replaces licences with registration of market agencies so that they can operate in more than one market, among other things.

However, only 18 states and union territories have implemented the reforms laid out in the Model Act. Four states are yet to initiate the reforms, and the remaining states are at various stages of implementing them.

10. Which of the following statements is incorrect regarding the Agricultural markets and its regulations?
a. Agricultural markets in the country are regulated by the Central Agricultural Produce Marketing Committee (APMC) laws.
b. Under the state APMC Acts, farmers are required to sell their produce at state-owned mandis.
c. Agricultural markets in the country are regulated by the State Agricultural Produce Marketing Committee (APMC) laws.
d. APMC mandis currently levy a market fee on farmers who wish to sell their produce in the mandis.

Answer: c

Explanation:

Agricultural markets in the country are regulated by state Agricultural Produce Marketing Committee (APMC) laws. Under these state Acts, farmers are required to sell their produce at state-owned mandis. Over the years, several issues have been highlighted in this system. For instance, APMC mandis currently levy a market fee on farmers who wish to sell their produce in the mandis. This makes it expensive for farmers to sell at APMC mandis. In addition, farmers have to arrange for their produce to be transported from their farms to the nearest mandi, which brings in costs such as transport and fuel. In transporting the produce from the farm to the store, several intermediaries are involved. These intermediaries are all paid a certain

IAS Prelims 2017- GS Economy complete Study Material

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