Here, we have provided Union Budget 2018-19 questions for IAS Exam. Such questions are completely based on the issues and proposed schemes of the Union Government announced while presenting the Union Budget 2018-19. There is a greater chance of asking such questions in IAS Prelims Exam 2018.
1. Recently, the Government has proposed the acceptance of key recommendations of the Fiscal Reform and Budget Management Committee headed by whom among the following?
a. N.K. Singh
b. Arvind Subramanian
c. Rathin Roy
d. Urjit Patel
The 5 member committee was headed by N.K. Singh, former Revenue and Expenditure Secretary and former MP. Its member included RBI Governor Urjit Patel Chief Economic Advisor Arvind Subramanian, former Finance Secretary Sumit Bose, and National Institute of Public Finance and Policy Director Rathin Roy. The committee was constituted in May 2016 following Finance Minister's Budget 2016-17 announcements. It was assigned a task to review the working of the FRBM Act over last 12 years to suggest the way forward. It was also tasked to examine the need and feasibility of having a ‘fiscal deficit range’ as the target in place of the existing fixed number (percentage of GDP) as fiscal deficit target.
The committee has kept in view the broad objective of fiscal consolidation and prudence and has suggested changes required in the context of the uncertainty and volatility in the global economy.
The first volume of the report addresses the issue of the fiscal roadmap fiscal policy, international experience and recommendations therein.
2. Education Cess and Secondary and Higher Education Cess on imported goods will be replaced by which of the following Taxes:
a. Goods and Services Tax
b. Social Welfare Surcharge
c. Education surcharge
The government has proposed to abolish the Education Cess and Secondary and Higher Education Cess on imported goods. In its place it is proposed to impose a Social Welfare Surcharge at the rate of 10 percent of the aggregate duties of Customs, on imported goods, to provide for social welfare schemes of the government. However, goods which were so far exempt from Education Cesses on imported goods will, however, continue to be so. In addition, certain specified goods, mentioned in Annexure 6 of the Budget speech, will attract the proposed Surcharge, at the rate of 3 percent of the aggregate duties of customs only.
3. With the rollout of GST, the Budget also proposes to change the name of the Central Board of Excise and Customs (CBEC) to:
a. Central Board of GST
b. Central Board of Indirect Taxes and Customs (CBIC)
c. Central Board of Direct Taxes
d. None of the above
With the rollout of GST, the Budget also proposes to change the name of the Central Board of Excise and Customs (CBEC) to the Central Board of Indirect Taxes and Customs (CBIC). In his budget speech for 2018-19, Finance Minister Arun Jaitley said with the rollout of GST the name of CBEC would be changed to CBIC.
Through Finance Bill 2018, the government is amending the Central Boards of Revenue (CBR) Act, 1963, as well as the Central Goods and Services Tax Act, 2017, replacing CBEC with CBIC.
4. Consider the following statements regarding the proposed relief to Senior Citizens announced in the Union Budget 2018-19:
1. Exemption of interest income on deposits with banks and post offices are proposed to be increased from Rs. 10,000 to Rs. 50,000.
2. Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
3. It is also proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March 2020.
Which of the above statements is/are correct?
a) 1 only
b) 1 and 2
c) 2 and 3
d) 1, 2 and 3
Relief to Senior Citizens has also been proposed. The proposals are:-
Exemption of interest income on deposits with banks and post offices are proposed to be increased from Rs. 10,000 to Rs. 50,000. TDS shall not be required to be deducted under section 194A. The benefit will also be available for interest from all fixed deposit schemes and recurring deposit schemes.
Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB. Concessions will give extra tax benefit of Rs. 4,000 crore to senior citizen. It is also proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March 2020. The current investment limit is also proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
5. Consider the following statements regarding the "operation green" proposed by the Union Finance Minister in his Budget speech:
1. The idea behind Operation Greens is to double the income of farmers by end of 2022.
2. The operation is essentially a price fixation scheme that aims to ensure farmers are given the right price for their produce.
Which of the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Finance Minister Arun Jaitley proposed to launch Operation Greens in his speech while presenting the Union Budget 2018-19. Operation Greens aims to promote farmer producers organisations, agri-logistics, processing facilities and professional management. The operation aims to aid farmers and help control and limit the erratic fluctuations in the prices of onions, potatoes and tomatoes.
The idea behind Operation Greens is to double the income of farmers by the end of 2022. The operation is essentially a price fixation scheme that aims to ensure farmers are given the right price for their produce. The MSP regulation has a key role to play here. The announcement to set minimum support price of all kharif crops at 1.5 times the cost of production will increase the farmers’ income and for consumers, tax incentives will be given under Operation Greens.