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Union Budget 2017 Questions for IAS Exam Part-1

Feb 1, 2017 16:48 IST

    Union Budget 2017 QuizThe Union Budget of India is a comprehensive display of the Government's estimated revenue and expenditure for a particular year. It also includes estimates for the next fiscal year, known as budgeted estimates. The Department of Economic Affairs under the Union Ministry of Finance is tasked with the preparation of the budget.

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    The Union Budget 2017 was broadly focused on 10 broad themes such as farmers, rural population, youth, poor, health care for the underprivileged, infrastructure, and financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and the tax administration for the honest.

    Union Budget 2017 Questions for IAS Exam

    We will continue to provide the Union Budget 2017 questions for IAS Exam on the crucial reforms of the year, vital for IAS Prelims 2017.

    1. Which of the following changes regarding the Budgeting process in India has been made in Union Budget 2017?

    1) Union budget was traditionally presented in the last week of February and passed by May. However, Union Budget 2017 is being tabled on February 1.
    2) From Union Budget 2017 onwards, Railways will be part of the general budget.
    3) Union Budget will also merge Capital and Revenue budgets.

    Choose the correct statement(s):

    a. Only 1
    b. 1 and 2
    c. 2 and 3
    d. 1, 2 and 3

    Answer: b

    Explanation:

    The Department of Economic Affairs under the Union Ministry of Finance is tasked with the preparation of the budget. The Union Finance Minister presented the Union Budget on February 1, 2017. A slew of changes is seen in this year’s Budget.

    Budget 2017-18 contains 3 major reforms. First, presentation of Budget advanced to 1st February to enable the Ministries to operationalise all activities from the commencement of the financial year. Second, the merger of the Railways Budget with General Budget to bring Railways to the centre stage of the Government’s Fiscal Policy and Third, removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries.

    2. Which of the following statement best describes the Agenda of Union Budget 2017?

    a. Transform, Energise and Clean India.
    b. 'Transform India' to have a significant impact on the economy and the lives of people.
    c. Growth and Sustainable development in India.
    d. None of the above.

    Answer: a

    Explanation:

    The Union Finance Minister presented the Union Budget on February 1, 2017. A slew of changes is seen in this year’s Budget. The Main Agenda for Union Budget 2017-18 is “Transform, Energise and Clean India” or TEC India

    The TEC India seeks to transform the quality of governance and quality of life of our people, energise various sections of society, especially the youth and the vulnerable, and enable them to unleash their true potential; and clean the country from the evils of corruption, black money and non-transparent political funding.

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    3. The Union Budget 2017 is committed to double the income of the farmers in 5 years. Consider the following reforms projected taking farmers as the distinctive theme:

    1) New mini labs in Krishi Vigyan Kendras (KVKs) to be established in the country for soil sample testing.
    2) A model law on Land Acquisition to be prepared and circulated among the States for adoption.
    3) Dairy Processing and Infrastructure Development Fund to be set up in NABARD.

    Choose the correct statement(s):

    a. Only 1
    b. 1 and 2
    c. 1 and 3
    d. 1, 2 and 3

    Answer: c

    Explanation:

    The Union Budget 2017 is committed to double the income of the farmers in 5 years. Some reforms projected taking farmers as the distinctive theme in the Budget are as follows:

    • Target for agricultural credit in 2017-18 has been fixed at a record level of 10 lakh crores
    • The Government will support NABARD for computerization and integration of all functional Primary Agricultural Credit Societies with the Core Banking System of District Central Cooperative Banks.
    • Coverage under Fasal Bima Yojana scheme will be increased to 40% in 2017-18.
    • New mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100% coverage of all 648 KVKs in the country for soil sample testing.
    • The Long Term Irrigation Fund is already set up in NABARD and a dedicated Micro Irrigation Fund has also been created in NABARD to achieve per drop more crops.
    • The Coverage of National Agricultural Market (e-NAM) to be expanded to 585 APMCs.
    • A model law on contract farming will be prepared and circulated among the States for adoption.
    • The Dairy Processing and Infrastructure Development Fund will be set up in NABARD.

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    4. Which of the following themes is not among the ten distinct themes to foster the Union Budget 2017 agenda?

    a. Urban Population
    b. Digital Economy
    c. Tax Administration
    d. Youth

    Answer: a

    Explanation:

    Ten distinct themes to foster the Transform, Energise and Clean India agenda of Union Budget 2017 are as follows:
    Farmers: By committing to double the income of Farmers in 5 years;
    Rural Population: By providing employment & basic infrastructure;
    Youth: By energising them through education, skills and jobs;
    The Poor and the Underprivileged: By strengthening the systems of social security, health care and affordable housing;
    Infrastructure: For efficiency, productivity and quality of life;
    Financial Sector: For growth & stability by stronger institutions;
    Digital Economy: By enabling speed, accountability and transparency;
    Public Service: By implementing effective governance and efficient service delivery through people’s participation;
    Prudent Fiscal Management: By ensuring optimal deployment of resources and preserve fiscal stability;
    Tax Administration: By honouring the honest.

    5. Consider the following reformatory changes made in the Personal Income Tax administration of the country to honour the honest tax payer:

    1) Existing rate of taxation for individual assesses between incomes of 2.5 lakhs to 5 lakhs is reduced to 1%.
    2) Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to 5 lakhs.
    3) Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between 50 lakhs and 1 crore.

    Choose the correct statement(s):

    a. Only 1
    b. 3 and 2
    c. 1 and 3
    d. 1, 2 and 3

    Answer: b

    Explanation:

    Changes made in the Personal Income Tax administration are as follows:

    • Existing rate of taxation for individual assesses between incomes of 2.5 lakhs to 5 lakhs reduced to 5% from the present rate of 10%.
    • Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between 50 lakhs and 1 crore
    • Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto 5 lakhs other than business income.
    • A common appeal is made to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of 2.5 lakhs to 5 lakhs.

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