Indian Economy GK Questions with Answers – Page 12

Section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 permits the central or a state government to require proof of an Aadhaar number, or of having applied for one, for any subsidy, benefit or service whose expenditure is met from the Consolidated…

A subsidy neither creates an asset for the government nor reduces any liability, so in the budget it is classified as revenue expenditure, and a large subsidy bill therefore widens the revenue deficit as well as the fiscal deficit.

Under this scheme a fixed subsidy is announced for each nutrient contained in a phosphatic or potassic fertiliser, and the manufacturer is free to fix the selling price, the aim being to encourage a balanced use of nutrients in the soil.

The Act divides the covered population into priority households, who receive five kilograms of grain for each member every month, and Antyodaya Anna Yojana households, which are the poorest and receive thirty-five kilograms for the whole household every month.

The budget documents group food, fertiliser and petroleum together as the major subsidies, because they are the three largest explicit subsidy payments made by the central government.

PAHAL, the direct benefit transfer scheme for cooking gas, was begun in fifty-four districts in November 2014 and extended to the whole country from 1 January 2015; the consumer buys the cylinder at the market price and the subsidy is credited to his bank account, and the Give It Up…

The Economic Survey of 2014-15 used the expression JAM number trinity for these three, because together they make it possible to send money to a poor household without a middleman: the Jan Dhan account receives the payment, the Aadhaar number identifies the beneficiary and removes duplicate names, and the mobile…

Direct Benefit Transfer began on that date in a small group of districts and for a limited number of schemes, and was then extended across the country and to hundreds of central schemes, paying scholarships, pensions, wages and subsidies into the beneficiary's own bank account.

Base Erosion and Profit Shifting (BEPS) describes how multinationals shrink their tax base in one country by moving profits to low-tax places.

The Financial Stability and Development Council (FSDC) is chaired by the Union Finance Minister and oversees macroprudential supervision, but it has nothing to do with NITI Aayog.

Buying securities puts money into the economy and raising the cash reserve ratio takes it out, but raising the bank rate reduces money supply instead of increasing it.

The Fifteenth Finance Commission gave forest and ecology a weight of 10 per cent in deciding each State's share of the divisible pool of Union taxes.

On the expenditure side of India's GDP, private consumption is the largest share, investment (gross fixed capital formation) comes next, then government consumption, and net exports come last.

Who finally bears a tax (its incidence) is decided by the market, through the elasticities of demand and supply, not by the law that says who must pay it.

The MAA (Mothers' Absolute Affection) programme is only about breastfeeding, so statement 3 is the one correct statement and 1, 2 and 4 are not.

A change in the good's own price moves the buyer along the same demand curve; it does not shift the curve.

Physical capital is the variety of inputs, such as tools, machines, buildings, raw materials and money in hand, needed at every stage of production.

The MPI measures the overlapping deprivations each person faces across indicators of health, education and standard of living. The global MPI was developed in 2010 by the Oxford Poverty and Human Development Initiative and the UNDP.

The GII measures gender gaps in reproductive health, empowerment and the labour market, and its value runs from 0 to 1.

When the capital-output ratio is high, a large amount of investment produces only a small rise in output. The capital-output ratio, or incremental capital-output ratio (ICOR), tells how many units of capital are needed to produce one extra unit of output.