Indian Economy Previous Year Questions (PYQ) with Answers – Page 26

A price index measures how the price of a commodity or of a basket of goods has moved between a base period and the current period, so the price of wheat over the years is read from a price index.

Skill is built on schooling and training, so a workforce in which a large share of workers is illiterate or barely schooled cannot absorb technical instruction the way a fully literate one can.

The reverse repo rate is the rate at which the Reserve Bank of India borrows from commercial banks, that is, the rate it pays banks for parking their surplus money with it for a short term.

The Reserve Bank of India publishes four measures of money supply, and M3 is the one called broad money, also known as aggregate monetary resources.

The public distribution system was made targeted in 1997, when households were divided into those above and those below the poverty line and the subsidy was concentrated on the poorer group.

The Pradhan Mantri Ujjwala Yojana was launched on 1 May 2016 at Ballia in Uttar Pradesh. It is run by the Ministry of Petroleum and Natural Gas and gives a free LPG connection, with a deposit-free cylinder and a fitted regulator, to women of poor households.

In zero based budgeting every item of expenditure starts from a zero base and has to be justified afresh for the coming period, instead of being carried over because it existed last year.

Article 243-I, inserted by the seventy-third Constitutional Amendment of 1992, requires the Governor of a State to constitute a Finance Commission at the expiration of every fifth year to review the financial position of the Panchayats and to recommend how taxes, duties, tolls and fees should be divided between the…

Sir M. Visvesvaraya, the engineer and former Diwan of Mysore, wrote ‘Planned Economy for India’ in 1934, the first book to set out a plan for India’s development.

France was the first country to introduce GST, in 1954. The idea came from Maurice Lauré, a French tax official, who designed a tax charged at every stage of production and sale but only on the value added at that stage.

Assam became the first state to ratify the GST Constitution Amendment Bill, on 12 August 2016, soon after Parliament passed it.

Prime Minister Narendra Modi launched the Swachh Bharat Mission on 2 October 2014, Mahatma Gandhi's 145th birth anniversary, at Rajpath in New Delhi.

Money from National Savings Certificates belongs to the savers, not the government, so under Article 266(2) it is credited to the Public Account.

The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.

UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.

GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.

Amartya Sen received the 1998 Nobel Memorial Prize in Economic Sciences "for his contributions to welfare economics". Sen worked on social choice theory, on how to measure poverty and inequality, and on the causes of famine.

GST is charged only on the value added at each stage, with credit for tax already paid, so it is not levied on the gross value again and again.

Under MFN, a favour given to one trading partner must be given to all WTO members. The MFN rule is Article I of the General Agreement on Tariffs and Trade (GATT), and it also appears in the services and intellectual property agreements of the WTO.

The RBI uses all-India CPI (Combined) inflation as the measure for its monetary policy. For a long time the Wholesale Price Index was India's headline inflation measure.