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Economic Survey 2016-17 for IAS Prelims: Universal Basic Income

Feb 10, 2017 17:23 IST

    Economy Survey 2016-17

    We are providing Indian economy IAS questions developed from the Economic Survey 2016 17 on a regular basis. Such multiple choice questions are very useful for the IAS preparation. An IAS aspirant should do practice of such questions which will help them to acquire confidence in their preparation.

    Economic Survey 2016-17 for IAS Prelims- Economic Outlook and Policy Challenges Part 2

    1. Which of the following is/are the component of Universal Basic Income?
    a. Universality
    b. Unconditionality
    c. Agency
    d. All of the above

    Answer: d

    Explanation:

    Universal Basic Income is a deep-seated and inducing paradigm shift in thinking about both social justice and a productive economy. It could be to the twenty first century what civil and political rights were to the twentieth. UBI has three components: universality, unconditionality, and agency (by providing support in the form of cash transfers to respect, not dictate, recipients’ choices).

    It is premised on the idea that a just society needs to guarantee to each individual a minimum income which they can count on, and which provides the necessary material foundation for a life with access to basic goods and a life of dignity. A universal basic income is, like many rights, unconditional and universal: it requires that every person should have a right to a basic income to cover their needs, just by virtue of being citizens.

    Economic Survey 2016-17 for IAS Prelims- Review of Economic Development II

    2. Consider the following statements regarding the central sector and centrally sponsored sub-schemes in India:
    I. The Union for 2016-17 indicates that there are about 950 central sector and centrally sponsored sub-schemes in India accounting for about 5 percent of the GDP by budget allocation.
    II. A large majority of central sector and centrally sponsored sub-schemes are small in terms of allocation with the top 11 schemes accounting for about 50 percent of total budgetary allocation.

    Which of the following statements is correct?
    a. Only I
    b. Only II
    c. Both I and II
    d. Neither I nor II

    Answer: c

    Explanation:

    The Budget for 2016-17 indicates that there are about 950 central sector and centrally sponsored sub-schemes in India accounting for about 5 percent of the GDP by budget allocation. A large majority of these are small in terms of allocation with the top 11 schemes accounting for about 50 percent of total budgetary allocation. Food Subsidy or Public Distribution System (PDS) is the largest programme followed by Urea Subsidy and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The other programs include Crop Insurance, Student Scholarships, National Handloom Development Programme etc. One must acknowledge though that many of these schemes have diverse benefits beyond immediate poverty reduction – for instance, student scholarships have inter-generational consequences for individuals.

    Economic Survey 2016-17 for IAS Prelims- Review of Economic Development Set I

    3. As per the Union Budget 2017-18, which of the following schemes of the Central Government of India got the largest amount of allocation?
    a. PDS
    b. MGNREGS
    c. SSA
    d. PMGSY

    Answer: b

    Explanation:

    MGNREGA get the highest ever allocation of Rs 48,000 crore in Union Budget 2017-18. The largest 7 central welfare schemes in India are PDS – food & kerosene, MGNREGS, the Sarva Shiksha Abhiyaan (SSA), the Mid Day Meal (MDM) scheme, the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Pradhan Mantri Awas Yojana (PMAY) and the Swachh Bharat Mission (SBM). Using program administrative data (2015-16) and data available from household level surveys (National Sample Survey, NSS and India Human Development Survey, IHDS) for 2005-06 and 2011-12, estimates of the targeting efficiency of programmes are provided.

    Complete study material of ECONOMIC SURVEY 2016-17

    4. 'Exclusion of genuine beneficiaries' is one of the major consequences of misallocation in welfare schemes in India. Regardint which of the following statement is correct?
    a. Misallocation has repercussions for targeting of resources to the poor.
    b. A natural consequence of misallocation is what has been described in the literature as “exclusion error”– genuine poor find themselves unable to access programme benefits.
    c. If a state or a district with more poor is allocated very little resources, then it is almost certain that some deserving households would be excluded.
    d. All of the above

    Answer: d

    Explanation:

    Misallocation has repercussions for targeting of resources to the poor. A natural consequence of misallocation is what has been described in the literature as “exclusion error”– genuine poor find themselves unable to access programme benefits. If a state or a district with more poor is allocated very little resources, then it is almost certain that some deserving households would be excluded. For instance, consider the states of Bihar, Madhya Pradesh, Rajasthan, Orissa and Uttar Pradesh: despite accounting for over half the poor in the country, these states access only a third of the resources spent on the MGNREGS in 2015-16.

    This almost certainly implies that some deserving individuals are left out. An estimate of the exclusion error from 2011-12 suggests that 40 percent of the bottom 40 percent of the population are excluded from the PDS. The corresponding figure for 2011-12 for MGNREGS was 65 percent.

    Union Budget 2017 Questions for IAS Exam

    5. Consider the following statements regarding the improvements in MNREGS since 2014-15:
    I. MGNREGS job cards for 10.9 crore active workers was digitalized, of which 8.7 crore workers had their job-cards seeded with Aadhaar.
    II. 4 crore workers were brought into the Aadhaar payment bridge.
    III. Nearly 39 lakh MGNREGS assets were geo-tagged since September 2016. These were provided publicly to improve accountability and transparency.

    Which of the following statements is correct?
    a. Only I
    b. Only II
    c. Both I and II
    d. Neither I nor II

    Answer: c

    Explanation:

    The MGNREGS program has evolved over the last two years to increase its focus on creation of durable assets, diversification of livelihood opportunities, selection of public works in congruence with other infrastructure programs such as PMGSY and PMAY-Grameen and a greater thrust on natural resource management and agriculture & allied activities. This is expected to improve farmers’ income and enlarge their wage opportunities. The programme is self-targeted. Often those who belong to deprived households and depend on casual labour are beneficiaries. The program also provides a higher number of days of employment (150 days instead of 100 days) in drought affected areas.

    Technological and programmatic improvements have been made in the last two years:
    • MGNREGS job cards for 10.9 crore active workers as digitalized, of which 8.7 crore workers had their job-cards seeded with Aadhaar
    • 4 crore workers were brought into the Aadhaar payment bridge
    • Nearly 39 lakh MGNREGS assets were geotagged since September 2016. These were provided publicly to improve accountability and transparency
    • 95 percent of MGNREGS wages were paid into beneficiary accounts, thereby, reducing scope for out-of-system leakage of wage payments
    • About 68 percent of active job cards were also verified and updated

    As a result, the number of completed works has increased from 25-30 lakhs (yearly average since inception) to 48 lakhs in the current year. 70 percent of these works is in Agriculture & Allied activities (an increase from 50 percent in 2013-14). Additionally participation of women in MGNREGS increased from 40 percent in 2006-2007 to 56 percent in 2016-17.

    Current Affairs Quizzes for IAS Prelims 2017- January 2017

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