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Union Budget 2017 Questions for IAS Exam Part-4

Feb 3, 2017 18:47 IST

    Union Budget Quiz 4

    The 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. Here we are providing the second part in questions based on Union Budget 2017.

    1. The Union Budget proposed that by the end of 2017-18, high speed broadband connectivity on optical fibre will be available in more than 1,50,000 gram Panchayats, under BharatNet. Consider the following statements regarding the BharatNet initiative:

    1) The objective of BharatNet is to facilitate the delivery of e-governance, e-health, e-education, e-banking, the Internet and other services to the Urban India.
    2) BharatNet provides affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and institutions in partnership with the States and the private sector.
    3) The entire project is being funded by Universal service Obligation Fund (USOF).

    Which of the following statements is correct?

    a. Only 1
    b. 1 and 2
    c. 2 and 3
    d. All of the above

    Answer: c

    Explanation:

    BharatNet is a project of national importance which provides a highly scalable network infrastructure accessible on a non-discriminatory basis. It also provides on demand, affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on demand capacity to all institutions, to realise the vision of Digital India, in partnership with the States and the private sector.

    The objective is to facilitate the delivery of e-governance, e-health, e-education, e-banking, the Internet and other services to the rural India. The entire project is being funded by Universal service Obligation Fund (USOF), which was set up for improving telecom services in rural and remote areas of the country.

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    2. The Budget proposed that the good communication can give a major fillip to Digital India. Which of the following statements best describes the objective of the newly launched digging initiative?

    a. Digigoan will provide telemedicine, education and skills through digital technology.
    b. Digigoan is a part of BharatNet initiative.
    c. Digigoan will provide optic fibre connectivity under the BharatNet initiative.
    d. All of the above.

    Answer: a

    Explanation:

    The Budget called the Telecom sector as an important component of the infrastructure, eco-system and noted that the recent spectrum auctions have removed spectrum scarcity in the country. This will give a major fillip to mobile broadband and Digital India for the benefit of people living in rural and remote areas.

    Further, for the BharatNet Project, the allocation has been stepped up to Rs.10,000 crores in 2017-18 and 1,55,000 kms of Optical Fibre Cables have been laid. A DigiGaon initiative will be launched to provide tele-medicine, education and skills through digital technology, he added.

    3. Consider the following steps undertaken under the Union Budget to strengthen the Energy Sector of India:

    1) The Government has decided to set up strategic crude oil reserves, especially in Uttar Pradesh and Rajasthan.
    2) The Budget proposed to create an integrated public sector called oil major, which will be able to match the performance of international and domestic government oil and gas companies.

    Which of the following statements is correct?

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: d

    Explanation:

    For strengthening our Energy sector, the Government has decided to set up Strategic Crude Oil Reserves. In the first phase, 3 such Reserve facilities have been set up and in the second phase, it is proposed to set up caverns at 2 more locations, namely, Chandikhole in Odisha and Bikaner in Rajasthan. This will take the country’s strategic reserve capacity to 15.33 MMT.

    Further, the Budget proposed to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies.

    In solar energy, the second phase of Solar Park development is proposed to be taken up for additional 20,000 MW capacity.

    4. After the tremendous success of the BHIM app, the Government will launch two new schemes to promote the usage of BHIM; these are:

    a. Referral Bonus Scheme for merchants and a Cashback Scheme for individuals.
    b. Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
    c. Universal basic Income and AadharPay.
    d. All of the above.

    Answer: b

    Explanation:

    BHIM is a biometric payment system app using Aadhar platform and is based on Unified Payment Interface (UPI) to facilitate e-payments directly through the bank. It was launched to stress the importance of technology and digital transactions. It can be used on all mobile devices, be it a smartphone or a feature phone with or without an internet connection.

    The payments through the new system (BHIM App) can be made by just a thumb impression after the bank account is linked with Aadhaar gateway. Indeed, the technology through BHIM will empower the poorest of the poor, small business and the marginalised section.

    125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM; these are, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants. Aadhar Pay, a merchant version of the Aadhar Enabled Payment System, will also be launched.

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    5. In the Union Budget 2017, the following measures have been taken to make MSME companies more viable

    1) Income tax for companies with annual turnover upto 50 crores is reduced to 25%.
    2) MAT credit is allowed to be carried forward up to a period of 15 years.

    Which of the above statements is correct?

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: c

    Explanation:

    In the Union Budget, following crucial measures have been undertaken to streamline growth.

    • Concessional withholding rate of 5% charged on interest earned by foreign entities in external commercial borrowings or in bonds.
    • For the purpose of carrying forward of losses in respect of startups, the condition of the continued holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original promoters continues.
    • Also, the profit exemption available to the startups for 3 years out of 5 years is changed to 3 years out of 7 years.
    • MAT credit is allowed to be carried forward up to a period of 15 years instead of 10 years at present.
    • In order to make MSME companies more viable, income tax for companies with annual turnover upto 50 crores is reduced to 25%.

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