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Indian EconomyEasyAsked in: UPSC CAPF · CAPF 2020, Paper I

PAHAL, an initiative to transfer the subsidy to direct bank account of the beneficiaries, is related to

  1. A.LPG consumers
  2. B.internet consumers
  3. C.farmers for fertilisers
  4. D.Central Government Employees for medical treatment

Correct answer

A. LPG consumers

Explanation

The correct answer is A, LPG consumers. PAHAL is the direct benefit transfer scheme for subsidy on cooking gas (LPG).

PAHAL stands for Pratyaksh Hanstantrit Labh, meaning direct transferred benefit. It was launched in 54 districts in November 2014 and extended to the whole country from 1 January 2015. Under it, LPG cylinders are sold at the market price, and the subsidy is credited straight into the consumer's bank account, linked through Aadhaar or bank details. This removed fake and duplicate connections and reduced the diversion of subsidised domestic cylinders to commercial use. The scheme entered the Guinness World Records as the largest cash transfer programme of its kind, and it was supported by the Give It Up campaign for richer households.

B is wrong: there is no such subsidy transfer for internet users.

C is wrong: fertiliser subsidy is paid to fertiliser companies under a separate DBT system, not PAHAL.

D is wrong: medical care for Central Government employees is provided through the CGHS, not PAHAL.

Exam tip: PAHAL = DBT for LPG (2014-15); Give It Up = voluntary surrender of LPG subsidy; Ujjwala = free LPG connections for poor women.

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Q1.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IHard

In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agricultural produce of all crops

2. Computerization of Primary Agricultural Credit Societies

3. Social Capital development

4. Free electricity supply to farmers

5. Waiver of agricultural loans by the banking system

6. Setting up of cold storage facilities by the governments

Select the correct answer using the code given below :

  1. A.1, 2 and 5 only
  2. B.1, 3, 4 and 5 only
  3. C.2, 3 and 6 only
  4. D.1, 2, 3, 4, 5 and 6
Show answer
Correct answer: C. 2, 3 and 6 only

Public investment means government spending that creates lasting assets or capacity, while support prices, free power and loan waivers are subsidies or transfers.

Q2.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2025, GS Paper IHard

Consider the following activities :

I. Production of crude oil

II. Refining, storage and distribution of petroleum

III. Marketing and sale of petroleum products

IV. Production of natural gas

How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

  1. A.Only one
  2. B.Only two
  3. C.Only three
  4. D.All the four
Show answer
Correct answer: B. Only two

The Petroleum and Natural Gas Regulatory Board covers the downstream chain, refining to sale, but not the production of crude oil and natural gas.

Q3.Indian EconomyAsked in: CDS · CDS-II 2019, GKMedium

Which one of the following equals Personal Disposable Income ?

  1. A.Personal Income - Direct taxes paid by households and miscellaneous fees, fines, etc.
  2. B.Private Income - Saving of Private Corporate Sectors - Corporation Tax
  3. C.Private Income - Taxes
  4. D.Total expenditure of Households - Income Tax - Gifts received
Show answer
Correct answer: A. Personal Income - Direct taxes paid by households and miscellaneous fees, fines, etc.

In national income accounting the steps run from private income to personal income to personal disposable income. Private income is the factor income of the private sector plus transfers.

Q4.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2025, GS Paper IHard

With reference to India, consider the following pairs:

Organization : Union Ministry

I. The National Automotive Board : Ministry of Commerce and Industry

II. The Coir Board : Ministry of Heavy Industries

III. The National Centre for Trade Information : Ministry of Micro, Small and Medium Enterprises

How many of the above pairs are correctly matched?

  1. A.Only one
  2. B.Only two
  3. C.All the three
  4. D.None
Show answer
Correct answer: D. None

Each organisation is paired with the wrong ministry. The National Automotive Board works under the Ministry of Heavy Industries; it supports the automobile sector with testing and certification work and helps run schemes for the industry.

Q5.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IMedium

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

1. Cut and optimize the Statutory Liquidity Ratio

2. Increase the Marginal Standing Facility Rate

3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

  1. A.1 and 2 only
  2. B.2 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: B. 2 only

An expansionist policy aims to make money cheaper and more plentiful, so the RBI would not raise the Marginal Standing Facility rate, which makes borrowing dearer.