The Planning Commission was set up by the Government of India in the year:
- A.1948
- B.1950
- C.1949
- D.1951
Correct answer
Explanation
The correct answer is B, 1950. The Planning Commission was set up in March 1950 by a resolution of the Union Cabinet, not by the Constitution or by an Act of Parliament, so it was an extra-constitutional and non-statutory body. The Prime Minister was always its chairman, Jawaharlal Nehru being the first, and a full-time Deputy Chairman ran its work. Its task was to assess the country's material, capital and human resources and to draw up Five Year Plans for their balanced use. The First Five Year Plan ran from 1951 to 1956, was based on the Harrod-Domar model and put agriculture and irrigation first. The Commission was replaced on 1 January 2015 by NITI Aayog, a policy think tank that advises but does not allot funds to states. Options A, C and D are wrong because 1948, 1949 and 1951 are each a year off; 1951 is when the First Plan began, not when the body was created. Exam tip: Planning Commission 1950, First Plan 1951-56, NITI Aayog 2015.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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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.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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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.
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