IAS Prelims 2017 Important Questions: Union Budget & Economic Survey

IAS Prelims 2017 Important Questions on Union Budget & Government Economic Survey: Millions of aspirants appear for the Civil Services Examination every year. IAS is regarded as one of the most competitive Civil Services Examination (CSE) as there are multiple stages for screening candidates (Pre & Mains Written Exam), a next to impossible interview to crack and the process takes almost an entire year. Hence, only the best of the best make it through the final cut. Union Public Services Commission (UPSC) has recently released the notification for the aspirants to apply for upcoming IAS 2017 examination.

All the UPSC IAS aspirants are now preparing for IAS Prelims 2017. The problem is that no matter how good & knowledgeable we think we are or how good we feel we have prepared for the exam there is always a certain level of uncertainty. To overcome this fear, we will be sharing IAS Prelims 2017 Important Questions on Union Budget & Government Economic Survey topics.

IAS Prelims 2017 Important Questions: Union Budget & Government Economic Survey

IAS Prelims exam is scheduled on 18th June, 2017. Over here, we are listing some expected questions on Union Budget & Government Economic topics for IAS Prelims 2017.

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Also, for your ease, we have mentioned the solutions (with explanations) of the below given questions:

Q.1 According to the Economic Survey, what is India’s rank in wind power installations?

1. 3^rd
2. 4^th
3. 5^th
4. 6^th

Ans.  4^th

Explanation: India has attained the fourth position globally in installed wind power capacity.It is after China, US and Germany as a result of various steps in the right direction.

Q.2 Economic survey 2016-2017 has projected the growth of the Indian economy in 2017-18 to what range?

1. 5-7.5 percent
2. 25-7.25 percent
3. 2-7.2 percent
4. 75-7.25 percent

Ans. 6.75-7.25 percent

Explanation: Economic survey 2016-2017 was prepared by CEA in Finance Ministry, Arvind Subramaniam. The survey projects growth rate of 6.75 to 7.25 percent in the fiscal 2017-2018. This marks the transitional adverse impact of demonetisation on on GDP growth.

Q.3 Economic Survey 2017-2018 has stated that cash supply replenishment will restore economy to __________.

1. Normal
2. Average
3. Deficit
4. None of the above

Ans.  Normal

Explanation: The Indian economy will recover in 2017-18 after the cash supply is replenished postdemonetisation. Demonetisation led to temporary slowdown in the GDP growth. Economy will reap benefits in terms of increased digitalisation, greater tax compliance and a reduction in real estate prices.

Q.4 what is PARA, as per the Economic Survey 2016-2017?

1. Public Sector Assets Reconstruction Agency
2. Public Sector Asset Rehabilitation Agency
3. Public Sector Additional Reconstruction Association
4. None of the above

Ans.  Public Sector Assets Reconstruction Agency

Explanation:  The Economic Survey 2016-17 on recommended a centralised Public Sector Asset Rehabilitation Agency (PARA) to tackle with the problems of increasing Non-Performing Assets (NPAs) of the bankingsystem and declining credit and investment.

Q.5 Economic Survey 2016-2017 is the first to use __________.

1. Big Data
2. Analytics
3. Econometrics
4. Statistics

Ans. Big Data

Explanation: For the first time, the Economic Survey has used Big Data Analysis to shed new light on theflow of goods and people within India.Survey produces first estimate of the flow of goods across states within India, based onanalyzing transactions level data provided by the Goods and Services Tax Network (GSTN),Survey furnishes exciting new evidence on the flows of migrants within India.

Q.6  According to the Economic Survey, what is relevant to Universal Basic Income?

1. JAM: Jan Dhan, Aadhar and Mobile
2. Centre-state negotiations for program cost sharing
3. Both of the above
4. Neither of the above

Ans. Both of the above

Explanation:

1. Functional JAM (Jan Dhan, Aadhar and Mobile) system as it ensures that the cash transfer goes directly into the account of a beneficiary.
2. Centre-State negotiations on cost sharing for the programme:

• The Survey says that a UBI that reduces poverty to 0.5 percent would cost between 4-5 percent of GDP.
• This is assuming that those in the top 25 percent income bracket do not participate.
• On the other hand, the existing middle class subsidies and food, petroleum and fertilizer subsidies cost about 3 percent of GDP.

Q.7 New estimates of labour migration in India show it was more pronounced for _________

1. Females
2. Males
3. Elderly workers
4. None of the above

Ans. Females

Explanation: New estimates of labour migration in India have revealed that inter-state labor mobility is significantly higher than previous estimates. The study based on the analyses of new data sources and new methodologies also shows that the migration is accelerating and was particularly pronounced for females.

Q.8 what is the tax slab for zero tax rate?

1. Upton INR 3 lakhs
2. Between INR 5 and 10 lakhs
3. Between INR 3 and 5 lakhs
4. None of the above

Ans.  Upton INR 3 lakhs

Explanations: Tax Slab-2017

Q.9 Budget 2017 has proposed _________________ as the front office for issuing passport in far flung areas.

1. Airport
2. Telegraph office
3. Post Office
4. Railway Station

Ans.  Post Office

Explanation: The Budget 2017 has identified the PSU sector as one of the key drivers of the economy. Citizens in far-flung, isolated regions find it tough to obtain passports, therefore, head post offices will now be used as front offices.

Q.10 Which is the fourth budget of the Modi Government and the 87th budget?

1. Budget 2015
2. Budget 2016
3. Budget 2017
4. Budget 2018

Ans. Budget 2017

Explanation: This fourth budget of the Modi sarkar and the 87th budget in Independent India was presented on Feb 1, 2017.

Q.11 Union Budget 2017 has pegged fiscal deficit for 2017-2018 as?

1. 3.2 percent
2. 3.3 percent
3. 3.4 percent
4. 3.5 percent

Ans. 3.2 percent

Explanation: Fiscal deficit for 2017-18 estimated at 3.2 per cent of GDP.  The total resources being transferred to the States and the UTs with Legislatures is INR 4.11 lakh crore in 2017-2018, as against INR 3.60 lakh crore in 2016-2017.

Q.12 How much has been allocated for the infrastructure sector for 2017-2018?

1. INR 3, 96,314
2. INR 3, 96,134
3. INR 3, 96,124
4. INR 3, 96,214

Ans. INR 3, 96,134

Explanation: Union Finance Minister ArunJaitley announced a total allocation of INR 3, 96,134 crore forthe infrastructure sector for the year 2017-2018.  For transportation sector, including rail, roads, shipping, Budget 2017 provides INR 241387 crores in 2017-18.

Q.13 In order to limit lack of transparency in electoral funding, one person will now be allowed todonate more than how much?

1. INR 4000
2. INR 3000
3. INR 2000
4. INR 1000

Ans. INR 2000

Explanation: Union budget presented by finance minister ArunJaitley launched a lot of measures including political funding reforms.The budget capped anonymous cash donations to political parties at INR 2,000.

Q.14 Which budget has given the highest ever allocation for MGNREGA?

1. Budget 2016
2. Budget 2015
3. Budget 2017
4. Budget 2014

Ans. Budget 2017

Q.15 According to the Union Budget, transaction above how much will not be permitted in cash?

1. INR 3 lakhs
2. INR 4 lakhs
3. INR 5 lakhs
4. INR 6 lakhs

Ans. INR 3 lakhs

Q.16 What is the percentage of FDI through automatic route at present according to the Budget?

1. 60 percent
2. 70 percent
3. 80 percent
4. 90 percent

Ans.  90 percent

Q.17 Which national agency will be phased out in the next fiscal, as per the Budget 2017?

1. Niti Aayog
2. Foreign Investment Promotion Board
3. Securities Exchange Board of India
4. None of the above

Ans. Foreign Investment Promotion Board

Explanation: FIPB the two-decades-old body that was formed as a leading becon of the economic liberalisation of 1993 will be phased out. The 93 round of reforms under the P.V. Narasimha Rao regime, for the first time, opened doors to foreign investors. A major announcement in the budget was the abolition of the FIPB.

Q.18 100 percent village electrification is being targeted by the Budget by?

1. May 1, 2018
2. May 1, 2019
3. June 1, 2018
4. July 1, 2018

Ans. May 1, 2019

Explanation: From poverty free Panchayats to 100 per cent electrification of villages by May 2019 andmajorly hiking the MNREGA fund, FM ArunJaitley focused on rural India in the Budget 2017-2018.In his Budget speech, the FM said that 100 per cent electrification of villages will be achievedby May 1, 2019.

Q.19 Allocation for PM’s Employment Generation and Credit Support schemes has been increasedby how many times?

1. 2
2. 3
3. 4
4. 5

Ans. 3

Explanation: 3 times increased allocation for Prime Minister’s Employment Generation Programme (PMEGP) and credit support schemes.

Q.20 Which is true about the BHIM App?

1. Cashback scheme has been announced for individuals
2. Referral bonus schemes have been announced for individuals
3. Cashback scheme has been announced for merchants
4. Only b and c

Ans. Only b and c

Explanation: The government will launch two new scheme to promote the use of the BHIM app. One will be referral payments for individuals, and another will cashback for merchants who accept payments from BHIM.

Q.21 Indian Railways will focus on which of the following areas for the coming fiscal, as per the Budget?

1. Passenger Safety
2. Cleanliness
3. Women Security
4. Only a and b

Ans. Only a and b

Explanation: National carrier will focus on 4 major areas: passenger safety, capital and development works, cleanliness and finance and accounting reforms—matters traditionally announced by the Union railway minister

Q.22 Agriculture sector will grow by what percent in 2017-2018, as per Budget 2017?

1. 3.8
2. 4.1
3. 4.5
4. 4.6

Ans. 4.1

Explanation: The Union Budget was presented by FM ArunJaitley against plummeting farm incomes despite a good agriculture growth of 4.1 percent and healthy production of rain-fed Kharif crops in 2016-17. The impacts of demonetization were not that beneficial for the agriculture sector. The incomes of the farm were adversely impacted due to it.

Q.23 Which facility was announced for senior citizens in Budget 2017-2018?

1. Aadhaar-enabled smart cards
2. BHIM app
3. Shakti Kendras
4. None of the above

Ans. Aadhaar-enabled smart cards

Explanation: The recent Budget development on Aadhaar is that senior citizens would receive Aadhaarbased smart cards for their health and well-being. Aadhaar-based smart cards would comprise health details of senior citizens.

Q.24 As per the budget, a dedicated micro-irrigation fund for More Crop Per Drop will have anallocation of?

1. INR 10000 crore
2. INR 5000 crore
3. INR 6000 crore
4. INR 8000 crore

Ans. INR 5000 crore

Explanation: The Finance Minister also announced a dedicated micro irrigation fund which will be set up by NABARD to attain the goal, ‘per drop more crop’, with an initial corpus of INR 5,000 crore.

Q.25 Which of the following is correct?

1. DigiGaon will provide telemedicine, education and skills through digital technology
2. BharatNet Project allocation has been increased by INR 10,000 crores.
3. All of the above
4. None of the above

Ans.  All of the above

Candidates are advised to go through IAS Prelims 2017 Important Questions to prepare efficiently for the upcoming examination. Here we are ending up our article on IAS Prelims 2017 Important Questions: Union Budget & Economic Survey Most Expected questions. We hope that these questions will help you in all the ways.

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