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IAS Preparation: Questions for Prelims 1 February 2018

Feb 1, 2018 17:41 IST
    IAS Preparation: Questions for Prelims 30 January 2018
    IAS Preparation: Questions for Prelims 30 January 2018

    To clear the IAS Exam, continuous efforts to master the current affairs component are a must. To answer current affairs based questions in prelims, one should not only have the preliminary information about the current events, but also the clarity about the issues and concepts involved.

    To cater to this need of IAS Exam aspirants, Jagran Josh is providing five important Multiple Choice Questions (MCQs) on a daily basis. The questions cover important current affairs events in the fields of economy, national, India-World relations, science and technology, environment, etc. Answers along with detailed explanations to the questions will help the aspirants in answering further questions on the given topic in all the phases of the exam – Preliminary, Mains written and Personality Test.

    IAS Prelims Exam Guide

    1. In his recent budget speech, Union Finance Ministery Arun Jaitley estimated the fiscal deficit for the FY 2018-19 at 3.3%. The fiscal deficit is calculated as –
    a) Total Expenditure – Total Receipts
    b) Total Expenditure – (Total Receipts – Borrowings and other liabilities)
    c) Total Expenditure – (Total Receipts – Recovery of Loans)
    d) Total Expenditure – (Total  Receipts – Other Receipts)

    Answer. b

    Explanation:

    Union Finance Minister Arun Jaitely on February 1, 2018 presented the Budget 2018-19 to the Lok Sabha. For the FY 2018-19, he projected that the fiscal deficit will be 3.3%. For the FY 2017-18, the estimated fiscal deficit was 3.2%, while the revised estimate is 3.5%.

    Important budget-related concepts are given below.

    1.

    Revenue Receipts

    Tax-Revenue + Non-Tax Revenue

    2.

    Capital Receipts

    Recovered Loans + Borrowings & other liabilities + Other Receipts

    3.

    Total Receipts

    Revenue Receipts +  Capital Receipts

    4.

    Total Expenditure

    Revenue Exp. + Capital Exp. + Interest Payments + Grants in Aid

    5.

    Revenue Deficit

    Revenue Expenditure – Revenue Receipts

    6.

    Effective Revenue Deficit

    Revenue Deficit  – Grants in Aid

    7.

    Fiscal Deficit

    Total Expenditure – (Total Receipts – Borrowings and other liabilities)

    8.

    Primary Deficit

    Fiscal Deficit – Interest Payments

    IAS Questions for IAS Prelims 2018: September 2017

    2.  Which of the following documents were laid before both houses of the Parliament by Union Finance Minister Arun Jaitley along with the Budget 2018-19?
    1) Medium-term Fiscal Policy Statement
    2) Fiscal Policy Strategy Statement
    3) Macro-economic Framework Statement
    4) Medium-term Expenditure Framework Statement

    Select the correct code:
    a) 1 and 2 only
    b) 3 and 4 only
    c) 1, 2 and 3 only
    d) All of them

    Answer. c

    Explanation:

    Union Finance Minister Arun Jaitely on February 1, 2018 laid the Annual Finance Statement or Budget for the FY 2018-19 before both the houses of the Parliament. Along with the budget, he laid three fiscal policy statements, namely, Medium-term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macro-economic Framework Statement before both the houses of the Parliament. This was in accordance with the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 and the FRBM (Amendment) Act, 2012.

    The Section 3 of the FRBM Act mandates the government to lay the Medium-term Expenditure Framework Statement before both houses of the Parliament immediately following the session of Parliament in which the other three policy statements were laid.

    (I) Medium-term Fiscal Policy Statement

    It shall set forth a three-year rolling target for prescribed fiscal indicators with specification of underlying assumptions. The statement shall include an assessment of sustainability relating to the balance between revenue receipts and revenue expenditures and the use of capital receipts including market borrowings for generating productive assets.

    (II) Fiscal Policy Strategy Statement

    It contains four elements. They are given below.

    i. The policies of the Union Government for the ensuing financial year relating to taxation, expenditure, market borrowings and other liabilities, lending and investments, pricing of administered goods and services, securities and description of other activities such as underwriting and guarantees which have potential budgetary implications.

    ii. The strategic priorities of the Central Government for the ensuing financial year in the fiscal area

    iii. The key fiscal measures and rationale for any major deviation in fiscal measures pertaining to taxation, subsidy, expenditure, administered pricing and borrowings.

    iv. An evaluation as to how the current policies of the Central Government are in conformity with the fiscal management principles set out in section 4 and the objectives set out in the Medium-term Fiscal Policy Statement.

    (III) Macro-economic Framework Statement

    It shall contain an assessment of the growth prospects of the economy with specification of underlying assumptions. Further, the statement shall contain an assessment relating to -

    i. The growth in the gross domestic product

    ii. The fiscal balance of the Union Government as reflected in the revenue balance and gross fiscal balance

    iii. The external sector balance of the economy as reflected in the current account balance of the balance of payments.

    (IV) Medium-term Expenditure Framework Statement

    It shall set forth a three-year rolling target for prescribed expenditure indicators with specification of underlying assumptions and risk involved. The statement contains the following three elements.

    i. The expenditure commitment of major policy changes involving new service, new instruments of service, new schemes and programmes.

    ii. The explicit contingent liabilities, which are in the form of stipulated annuity payments over a multi-year time-frame.

    iii. The detailed breakup of grants for creation of capital assets.

    IAS Preparation Questions for IAS Prelims 2018: August 2017

    3. Recently, the Economist Intelligence Unit (EIU) released the Global Democracy Index 2018. What is India’s rank in the index?
    a) 40
    b) 41
    c) 42
    d) 43

    Answer. c

    Explanation:

    On January 31, 2018 the Economist Intelligence Unit (EIU) released the Global Democracy Index 2018. In the annual index, India slipped to 42nd rank from the 32nd rank in the 2017 index. As a result, India remains classified as a "flawed democracy". Along with India, the USA (ranked 21), Japan, Italy, France, Israel, Singapore, and Hong Kong have also been categorized as ‘flawed democracies'.

    Out of the 165 countries and territories surveyed, Norway was adjudged as the ‘best democracy’ in the world. The ranking was based on five parameters, namely, electoral process and pluralism, civil liberties, functioning of government, political participation and political culture.

    On the basis of performance, the index ranked countries into four broad categories -- full democracy, flawed democracy, hybrid regime and authoritarian regime.

    IAS Preparation Questions for IAS Prelims 2018: July 2017

    4. Consider the following statements related to the TEQIP-III programme that was in the news recently.
    1) It was launched by the Union Ministry of Human Resource Development (MHRD).
    2) It seeks to improve quality of education in primary schools in rural areas.

    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. a

    Explanation:

    The Technical Education Quality Improvement Programme (TEQIP) was in the news January 2018 as 1225 highly qualified graduates from premier institutions like Indian Institutes of Technology (IITs) and National Institutes of Technology (NITs) were recruited to teach in Engineering Colleges in States/UTs like Andaman & Nicobar, Assam, Bihar, Jammu and Kashmir, Madhya Pradesh, Odisha, Jharkhand, Chhattisgarh, Tripura, Rajasthan, Uttar Pradesh, Uttarakhand, etc.

    About TEQIP

    The Union Ministry of Human Resources Development (MHRD) started the TEQIP for improving quality of education in engineering colleges in backward areas. Under this project, all the Government engineering colleges are selected for direct intervention, and all private engineering colleges are selected for indirect intervention. Under the TEQIP-III, Rs. 2,300 crore will be spent in a 3-year period till 2020.

    The measures under TEQIP are given below.

    Institution-based measures: Accreditation of the courses through the National Board of Accreditation (NBA), governance reforms, improving the processes, digital initiatives, securing autonomy for the colleges.

    Student-based measures: Improving the quality of teaching, teacher training, equipping the classrooms, revision of the syllabus, industry interaction, compulsory internships for students, training the students in industry-relevant skills, preparing them for the Graduate Aptitude Test in Engineering (GATE) exam, etc.

    IAS Preparation Questions for IAS Prelims 2018: June 2017

    5. Recently, the Union Ministry of Commerce and Industry announced that the eight core industries of Index of Industrial Production (IIP) rose by 4.0% in December 2017 as compared to the index of December 2016. Which of the following is/are part of ‘eight core industries’?
    1) Coal
    2) Fertilizers
    3) Cement
    4) Electricity
    5) Steel

    Select the correct code:
    a) 1, 2 and 3
    b) 3, 4 and 5
    c) 1, 2, 3 and 4
    d) All of them

    Answer. d

    Explanation:

    The Union Ministry of Commerce and Industry on January 31, 2018 announced that the combined Index of Eight Core Industries stands at 129.1 in December 2017, which was 4.0 percent higher as compared to the index of December 2016. Its cumulative growth during April to December 2017 was 4.0 percent.

    Eight core industries comprise the 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). The eight core industries of IIP are coal, crude oil, natural gas, fertilizers, steel, cement, refinery products and electricity.

    IIP measures the quantum of changes in the industrial production in an economy and captures the general level of industrial activity in the country. It is compiled and published every month by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation. In May 2017, the  base year of the IIP was revised from 2004-05 to 2011-12. The new base year was selected keeping in view the base year of other macroeconomic indicators, namely, Gross Domestic Product (GDP) and Consumer Price Index (CPI).

    Best wishes from Jagran Josh!

    Economic Survey 2017-18: Analysis and Questions

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