DAY – 39: Insights Self Study Guide for UPSC Prelims + Mains – 2015

Which of the following is/are the recommendations of The Fourteenth Finance Commission?

1. Tax devolution should be the primary route for transfer of resources to the States
2. The commission has recommended states’ share in net proceeds of tax revenues be 32 per cent
3. Reduce fiscal deficit to 3 per cent by 2016-2017

Choose the correct answer using the codes below:

Which of the following measures can ensure reduction in revenue deficit and fiscal deficit?

1. Expenditure switching from consumption to investment
2. Introduction of Goods and Sales Tax
3. Borrowing only for capital formation

Choose the correct answer using the codes below:

‘Debt – dynamic wedge’ or ‘Debt dynamics’ about which the Economic Survey – 2015 talks about, is defined as

Which of the following acts and committees established the principle of aiming to bring the centre’s fiscal deficit down to 3 percent of GDP?

1. Vijay Kelkar committee on fiscal consolidation
2. FRMB Act
3. SARFAESI Act
4. Narasimhan Committee

Choose the correct answer from the codes below:

Consider the following statements:

1. The estimated direct fiscal cost of subsidies is about 4 per cent of the GDP
2. In India, price subsidies appear to have had a transformative effect on the living standards of the poor

Which of the above statements is/are correct?

The Economic Survey 2015 argues that the allocations of subsidised kerosene should ‘naturally’ decline over the years. This is because

1. PDS kerosene leakages are larger in richer states
2. Kerosene consumption tends to decline as incomes rise
3. Household demand for kerosene in India is declining

Choose the correct answer using the codes below:

With reference to the Indian Financial System Code (IFSC Code), consider the following statements:

1. It is a ten digit code that uniquely identifies a bank-branch participating in RTGS and NEFT fund transfer systems
2. Recently Post Offices in India have also been given IFSC codes

Which of the above statements is/are correct?

With reference to ‘stalling of projects’ in India, consider the following statements:

1. The government’s stalled projects are predominantly in infrastructure
2. The stalling rate of projects has been decreasing steadily during past three years
3. At present the stock of stalled projects is about 10 percent of the GDP

Which of the above statements is/are correct?

The ability of a company to pay the interest on its outstanding debt is measured using the Interest Coverage Ratio (ICR). If the value of ICR is lower than 1, what does it indicate?

Which one of the following is/are identified as flaws in the current model of Public Private Partnership?

1. Contracts are over-dependent on market wisdom
2. No reward for restructuring and renegotiating projects
3. Existing contracts focus more on fiscal benefits than on efficient service provision

Choose the correct answer using the codes below: