Indian Economy Mixed Quiz: Set 17

France adopted the value added tax in 1954, and the idea of taxing only the value added at each stage, with credit for the tax paid earlier, spread from there to most of the world.

Rural cooperative credit societies were the microfinance structure already in place when India became independent.

Primary deficit equals fiscal deficit minus interest payments. Interest is the price of borrowing done in earlier years, so removing it leaves the gap created by the current year's own decisions on spending and taxation, which is why economists read the primary deficit as a measure of present fiscal discipline.

This law makes the right to work a legal guarantee: every rural household whose adult members are willing to do unskilled manual work is entitled to at least 100 days of wage employment in a financial year.

It was levied on the net wealth of individuals, Hindu undivided families and companies, but it collected very little compared with the effort of assessing it, so it was withdrawn in 2015 and replaced by an additional surcharge on very high incomes.

It is a private sector joint venture, not a public sector insurer. SBI Life was set up in 2001 as a partnership between the State Bank of India and BNP Paribas Cardif of France.

Article 112 requires the President to cause a statement of the estimated receipts and expenditure of the Government of India for every financial year to be laid before both Houses of Parliament, and that statement is the Annual Financial Statement.

SIDBI is the apex institution for micro, small and medium enterprises. It was set up in 1990 under an Act of Parliament, began work on 2 April that year, and has its head office at Lucknow.

Article 279A provides that a decision of the Council needs a majority of not less than three fourths of the weighted votes of the members present and voting, with the vote of the Centre carrying one third of the total votes cast and the votes of all the state governments…

The Foreign Exchange Management Act was passed in 1999 and came into force on 1 June 2000, replacing the Foreign Exchange Regulation Act of 1973.

K. C. Neogy chaired the first Finance Commission, which was constituted in 1951 under Article 280 soon after the Constitution came into force, and whose recommendations covered the sharing of income tax and union excise duties with the States.

Consumer theory studies how a household decides to spend its money among the goods and services available to it. The idea rests on three things: the wants of the consumer, the prices of goods, and the income in hand, which is the budget constraint.

Statement one is correct because the securities transaction tax is charged on the purchase and sale of securities on a recognised stock exchange and is borne by the investor who makes the transaction; the burden cannot be passed on to anybody else, which is the test of a direct tax…

IBM and Coca-Cola wound up their Indian operations in 1977 rather than dilute their holdings to 40 per cent. The Foreign Exchange Regulation Act, passed in 1973, required foreign companies to cut their equity in Indian subsidiaries to that level and to obtain permission for most dealings in foreign exchange.

A direct tax is one whose burden cannot be shifted: the person or company assessed both pays it and bears it.

The Monopolies and Restrictive Trade Practices Act was passed in 1969 and came into force on 1 June 1970. It followed the report of the Dutt Committee on industrial licensing, which found that economic power had gathered in a few business houses.

The Fiscal Responsibility and Budget Management Act was passed by Parliament in 2003 and brought into force in 2004.

The New Industrial Policy of 24 July 1991 abolished industrial licensing for all but a short list of industries, so a firm no longer needed a government permit to start production, to expand or to import.

Article 267 allows Parliament by law to establish a Contingency Fund of India, held at the disposal of the President so that advances can be made for unforeseen expenditure before Parliament authorises it; the amount is afterwards recouped from the Consolidated Fund through a supplementary appropriation.

The Index of Industrial Production (IIP) covers only three sectors: mining, manufacturing and electricity.