ECONOMICS 2022

Q.1 Economic variables such as “National Income’ and “profits” can be classified under which of the following heads ?

(1) Stock concept Quesion:

(2) Flow concept

(3) Depreciation

(4) Final goods

ANS A

Q.2 Elasticity of demand is constant and equal to 1 at every point on the demand curve. The shape of such a demand curve would be :

(1) Horizontal straight line

(2) Vertical straight line

(3) Downward sloping curve

(4) Rectangular hyperbola

ANS D

Q.3 Name the architect of Indian Planning

(1) William Digby

(2) P.C. Mahala Nobis

(3) V.K.R.V. Rao

(4) Dadabhai Naoroji

ANS B

Q.4 Which of the following is not included in Human Development Indicators?

(1) Women Empowerment

(2) Infant Mortality rate

(3) Access to basic sanitation

ANS A

Q.5 Which of the following statements are incorrect?

(A) Circular flow of income does not take place in a closed economy.

(B) Real flow consists of flow of factor services from households to firms.

(C) Ina two-sector economy, total production is always equal to total consumption. 

(D) Money flow consists of flow of factor payments from households to firms.

Choose the correct answer from the options given below:

(1) (A) and (B) only

(2) (A), (C) and (D) only

(3) (A) and (D) only

ANS A

Q.6 Identify the correct statements regarding money supply

(A) Money supply is a stock concept.

(B) Money supply is a flow concept.

(C) Money supply is the currency (cash and coins) with the public and demand deposit in banks.

(D) Money supply is the currency held with banks.

(E) Money supply is the concept of real flow.

Choose the correct answer from the options given below :

(1) (A)and (C)

(2) (A) and (D)

(3) (B) and (B)

(4) (C) and (D)

ANS A

Q.7 Given the following set of data calculate equilibrium income. C = 100+0.8y.

Investment = Rs. 260 Cr.

(1) Rs. 1,500 Cr

(2) Rs. 2,300Cr

(3) Rs.  2,200Cr

(4) Rs. 1,800 Cr

ANS D

Q.8 Suppose a country only produces bread. In the year 2000 it had produced 100 units of bread, price was Rs. 10 per bread. In 2001, the same country produced 110 units of bread at price was Rs. 15 per bread. In 2001, the nominal and real GDP are : (base year is 2000)

(1) Rs. 1,550 and Rs. 1,000

(2) Rs. 1,400 and Rs. 2,000

(3) Rs. 1,650 and Rs.1,100

ANS C

Q.9 Identify the quantitative tools used by RBI to control money supply.

(A) Moral Suasion

(B) Bank Rate

(C) Cash Reserve Ratio

(D) Open Market Operations

(E) Margin requirement

Choose the correct answer from the options given below:

(1) (A) only

(2) (), () and (D) only

(3) (B) and (C) only

(4) (A) (D) and (E) only

ANS B

Q.10 Match List - I with List - II

Choose the correct answer from the options given below :

(1) (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

(2) (A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(3) (A)-(I), (B)-(IV), (C)-(III), (D)-(II)

(4) (A)-(III), (B)-(II), (C)-(IV), (D)-(I)

ANS A

Q.11 Rs. 48,000 cr is allotted for PM Awas Yojana in this years budget’. Identify the government objective fulfilled from the statement above.

(1) Economic stability

(2) Redistribution of income

(3) Reallocation of resources

(4) Reducing regional disparities

ANS C

Q.12 If the reserve ratio is 10% and the initial deposit with the  commercial banks are Rs. 450 cr, the total money creation by the banking system will be :

(1) Rs.4,000 Cr

(2) Rs.5000 Cr

(3) Rs.3,500 Cr

(4) Rs.4500 Cr

ANS D

Q.13 Which of the following is considered as an intermediate good?

(1) Mobile purchased by a student

(2) Car purchased by a household

(3) Seeds and fertilizers purchased by a farmer

(4) Vegetables purchased by households

ANS C

Q.14 Match List - I with List – II

Choose the correct answer from the options given below:

(1) (A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(2) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(3) (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

(4) (A)-(IV), (B)-(II), (C)-(II), (D)-(I)

ANS B

Q.15 Which one of the following is the apex body to coordinate the activities of all institutions involved in the rural financing system? 

(1) NABARD (National Bank for Agriculture and Rural Development)

 (2) NSSO (National Sample Survey Organisation)

(3) SEBI (Securities and Exchange Board of India)

(4) RBI (Reserve Bank of India)

ANS A

Q.16 Infrastructure is divided into two categories:

(1) Primary and Secondary

(2) Commercial and Social

(3) Service and Industry

(4) Social and Economic

ANS D

Q.17 What would be the value of investment multiplier if MPC = MPS?

(1) 4

(2) 3

(3) 2

(4) 1

ANS C

Q.18 Which of the following is a function of RBI?

(1) Accepting deposits from general public

(2) Giving loans to general public

(3) Banker to the government

(4) Credit creation

ANS C

Q.19 If MPC = 0.75, autonomous consumption = 100 crore, then find the level of consumption at income level = 8,000 crore

(1) 7,000 crores

(2) 6,100 crores

(3) 6,900 crores

(4) 7,100 crores

ANS B

Q.20 Re-arrange the following in chronological order of their occurrence.

(A) Establishment of People’s Republic of China.

(B) Great Proletarian Cultural Revolution

(C) First Five Year Plan of Pakistan.

(D) First Five Year Plan of India.

(E) Economic Reforms of Pakistan.

Choose the correct answer from the options given below:

(1) (A), (B), (C), (D), (E)

(2) (A), (C), D), (B), (E)

(3) (A), (B), (D), (C), (E) 

(4) (A), (D), (C), (B) (E)

ANS D

Q.21 Which of the following is not a function of the Central Bank?

(1) Bank rate

(2) Open market operation

(3) Lender of last resort

(4) Deficit financing

ANS C

Q.22 If tea and coffee can be used in place of one another, then which of the following statements hold true ?

(A) Increase in price of tea leads to decrease in demand for coffee.

(B) Increase in price of tea leads to increase in demand for coffee.

(C) Tea and coffee are substitute goods.

(D) Decrease in price of tea leads to increase in price of coffee.

(E) Tea and Coffee are complimentary goods.

Choose the correct answer from the options given below:

(1) (A) and (E) only

(2) (B) and (E) only

(3) (C) and (D) only

(4) (B) and (C) only

ANS D

Q.23 Suppose the producers plans to add Rs. 100 cr worth of goods to her stock by the end of the year. However, due to an unforeseen upsurge of demand for her goods in the market, she had to sell goods worth Rs. 30 cr from her existing stock.

Now, determine Ex-ante Investment and Ex-post Investment from the above information.

(1) 100 Cr, 100 Cr

(2) 100 Cr, 70 Cr

(3) 70 Cr, 70 Cr

(4) 70 Cr, 100 Cr

ANS B

Q.24 What is the value of education cess levied on Union taxes by the Government of India?

(1) 5%

(2) 10%

(3) 12%

(4) 2%

ANS D

Q.25 Some of the factors responsible for land degradation in India an:

(A) Organic farming

(B) Forest fire and overerazing.

(C) Planned irrigation system

(D) Excession use of fertilizers and pesticides

(E) Shifting cultivation

Choose the correct answer from the options given below:

(1) (B), (D), (E) only

(2) (B), (D) only

(3) (A), (B) only

(4) (B), (E) only

ANS B

Q.26 Which of the following is not a reason for excess demand?

(1) Reduction in Taxes

(2) Fall in propensity to consume

(3) Increase in investments

(4) Increase in government spending

ANS B

Q.27 Which among the following is not a part of Qualitative measure of Monetary Policy of RBI?

(1) Margin Requirement

(2) Moral Suasion

(3) Reverse Repo Rate

(4) Selective Credit Control

ANS C

Q.28 Match List - I with List – II

Choose the correct answer from the options given below:

(1) (A)-(II), (B)-(IV), (C)-(III), (D)-(I)

(2) (A)-(I), (B)-(IV), (C)-(III), (D)-(II)

(3) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

(4) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

ANS A

Q.29 In China, Commune system is related to the sector.

(1) Informal

(2) Industry

(3) Service

(4) Agriculture

ANS D

Q.30 Identify the statement that stands true during deficient demand:

(A) Actual output falls short of potential output

(B) Potential output falls short of actual output

(C) Actual demand is less than expected demand

(D) Expected demand is less than actual demand

Choose the correct answer from the options given below :

(1) (D) only

(2) (A) and (C) only

(3) (A) and (B) only

(4) (B) only

ANS B

Q.31 Suppose you are a member of the “Advisory Committee to the Finance Minister of India”. The finance minister is concerned about the rising Revenue Deficit in the budget. Which measure would you suggest to control the rising Revenue deficit of the government?

(1) To increase grants given to the State Government

(2) To increase the subsidy

(3) To increase taxation

(4) To increase government administrative expenses

ANS C

Q.32 Five Year Plans in India were guided by which the following goals:

(A) Modernisation

(B) Equity

(C) Subsidies

(D) Self - Reliance

(E) Growth

Choose the correct answer from the options given below:

(1) (A), (B), (C), (E) only

(2) (A) (C), (D), (E) only

(3) (B), (C), (D), (E) only

(4) (A), (B), (D), (E) only

ANS D

Q.33 Identify the casual worker from amongst the following alternatives:

(1) Santu, who works on the farm of Sohan as he doesn’t own land of his own.

(2) Raghav, who owns a restaurant in a city.

(3) Angad who is a lawyer running, his own firm.

(4) Radha, who is a nurse working in a hospital.

ANS A

Q.34 Raising the value of country’s currency under fixed exchange rate system is:

(1) Devaluation

(2) Appreciation

(3) Revaluation

(4) Depreciation

ANS C

Q.35 Match List - I with List – II 

Choose the correct answer from the options given below:

(1) (A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(2) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

(3) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

(4) (A)-(IV), (B)-(I), (C)-(III), (D)-(II)

ANS B

Q.36 When consumption function starts from y axis, it indicates that?

(1) Consumption is zero when income is zero

(2) Consumption is positive when income is zero

(3) Saving is negative when income is positive

(4) Saving is positive when income is zero

ANS B

Q.37 Owing to the current political instability across many countries, the Indian rupee has sharply lost its value in terms of US dollars. The impact of this would be:

(A) A rise in imports from USA

(B) A fall in imports from USA

(C) Arise in exports to USA

(D) A fall in exports to USA

Choose the Correct answer from the options given below:

(1) (A) and (B) only

(2) (B) and (D) only

(3) () and (D) only

(4) (B) and (C) only

ANS D

Q.38 Which of the following is included in the estimation of National Income?

(1) Sugar purchased by a restaurant

(2) Expenditure incurred by a household on goods and services

(3) Contribution towards social security scheme by an employee

(4) Steel purchased by a car manufacturing company

ANS B

Q.39 The Central problems of an economy that relate to the question ‘what to produce and in what quantities, does not deal in:

(1) Technique of production

(2) Distribution of resources between different goods produced

(3) Quantities of different of goods

(4) Combination of goods to be produced in the economy

ANS A

Q.40 Suppose in an economy there are only two firms A and B. Calculate Gross Domestic Product at Market Price from the given table.

(1)  Rs. 270 Cr

(2) Rs. 140 Cr

(3) Rs. 330 Cr

(4) Rs. 170 Cr

ANS B

Q.41 Read the following Case Study based on Sustainable energy sources and answer question based on it.

India has been giving a push for alternate fuels such as Ethanol and more recently, Methanol to improve its energy security. India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports. Ethanol is primarily used for blending with gasoline citing twin benefits: substitution of gasoline to arrest rising crude imports and using a relatively cleaner fuel than gasoline. The Government of India regulates the prices of ethanol derived from various sources and procures it through the Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate; Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass etc. Natural gas is the most widely used feedstock to produce methanol across the world accounting for almost 70% of the global production. India has given a strong push for methanol from coal since coal is abundantly available in India whereas natural gas is a scarce resource. India is on the cusp of a major transformational change as it transitions towards a low carbon economy. The energy policies of the country and those on the anvil demonstrate and focus on the country’s transition toward cleaner fuels in a sustainable manner. And coal gasification of domestically available coal to produce methanol (deployed with Carbon Capture & Storage-CCS) presents an opportunity to accelerate this transition in an energy secure manner.

‘Alternate fuel refers to:

(1) fossil- fuel

(2) conventional energy sources

(3) non-conventional energy sources

(4) non-biodegradable energy sources

ANS C

Q.42 Read the following Case Study based on Sustainable energy sources and answer question based on it.

India has been giving a push for alternate fuels such as Ethanol and more recently, Methanol to improve its energy security. India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports. Ethanol is primarily used for blending with gasoline citing twin benefits: substitution of gasoline to arrest rising crude imports and using a relatively cleaner fuel than gasoline. The Government of India regulates the prices of ethanol derived from various sources and procures it through the Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate; Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass etc. Natural gas is the most widely used feedstock to produce methanol across the world accounting for almost 70% of the global production. India has given a strong push for methanol from coal since coal is abundantly available in India whereas natural gas is a scarce resource. India is on the cusp of a major transformational change as it transitions towards a low carbon economy. The energy policies of the country and those on the anvil demonstrate and focus on the country’s transition toward cleaner fuels in a sustainable manner. And coal gasification of domestically available coal to produce methanol (deployed with Carbon Capture & Storage-CCS) presents an opportunity to accelerate this transition in an energy secure manner.

New energy policies of the country aim at promoting:

(1) fossil fuel sources

(2) conventional energy sources

(3) crude oil imports

(4) sustainable use of cleaner fuels

ANS D

Q.43 Read the following Case Study based on Sustainable energy sources and answer question based on it.

India has been giving a push for alternate fuels such as Ethanol and more recently, Methanol to improve its energy security. India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports. Ethanol is primarily used for blending with gasoline citing twin benefits: substitution of gasoline to arrest rising crude imports and using a relatively cleaner fuel than gasoline. The Government of India regulates the prices of ethanol derived from various sources and procures it through the Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate; Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass etc. Natural gas is the most widely used feedstock to produce methanol across the world accounting for almost 70% of the global production. India has given a strong push for methanol from coal since coal is abundantly available in India whereas natural gas is a scarce resource. India is on the cusp of a major transformational change as it transitions towards a low carbon economy. The energy policies of the country and those on the anvil demonstrate and focus on the country’s transition toward cleaner fuels in a sustainable manner. And coal gasification of domestically available coal to produce methanol (deployed with Carbon Capture & Storage-CCS) presents an opportunity to accelerate this transition in an energy secure manner.

India meets its crude oil requirements through domestic sources of:

(1) 10 percent

(2) 75 percent

(3) 15 percent

(4) 85 percent

ANS C

Q.44 Read the following Case Study based on Sustainable energy sources and answer question based on it.

India has been giving a push for alternate fuels such as Ethanol and more recently, Methanol to improve its energy security. India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports. Ethanol is primarily used for blending with gasoline citing twin benefits: substitution of gasoline to arrest rising crude imports and using a relatively cleaner fuel than gasoline. The Government of India regulates the prices of ethanol derived from various sources and procures it through the Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate; Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass etc. Natural gas is the most widely used feedstock to produce methanol across the world accounting for almost 70% of the global production. India has given a strong push for methanol from coal since coal is abundantly available in India whereas natural gas is a scarce resource. India is on the cusp of a major transformational change as it transitions towards a low carbon economy. The energy policies of the country and those on the anvil demonstrate and focus on the country’s transition toward cleaner fuels in a sustainable manner. And coal gasification of domestically available coal to produce methanol (deployed with Carbon Capture & Storage-CCS) presents an opportunity to accelerate this transition in an energy secure manner.

Methanol is preferred as an alternate fuel over ethanol because it:

(A) hampers energy security of the country

(B) will not create fuel vs food security debate

(C) polluting energy source

(D) coal is abundantly available

(E) relatively cleaner fuel than gasoline

Choose the correct answer from the options given below:

(1) (A) and (E) only

(2) (B) and (D) only

(3) (A), (C) and (D) only

(4) (B), (D) and (E) only

ANS B

Q.45 Read the following Case Study based on Sustainable energy sources and answer question based on it.

India has been giving a push for alternate fuels such as Ethanol and more recently, Methanol to improve its energy security. India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports. Ethanol is primarily used for blending with gasoline citing twin benefits: substitution of gasoline to arrest rising crude imports and using a relatively cleaner fuel than gasoline. The Government of India regulates the prices of ethanol derived from various sources and procures it through the Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate; Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass etc. Natural gas is the most widely used feedstock to produce methanol across the world accounting for almost 70% of the global production. India has given a strong push for methanol from coal since coal is abundantly available in India whereas natural gas is a scarce resource. India is on the cusp of a major transformational change as it transitions towards a low carbon economy. The energy policies of the country and those on the anvil demonstrate and focus on the country’s transition toward cleaner fuels in a sustainable manner. And coal gasification of domestically available coal to produce methanol (deployed with Carbon Capture & Storage-CCS) presents an opportunity to accelerate this transition in an energy secure manner.

Match List - I with List – II

Choose the correct answer from the options given below :

(1) (A)-(IV), (B)-(II), (C)-(I), (D)-(III)

(2) (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(3) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

(4) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

ANS B

Q.46 Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend Rs. 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be Rs. 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world’s large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at Rs. 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

For the business community, which of the following relates to the Budget 2022?

(1) Economic Stability 

(2) Focus on growth and infrastructure

(3) Reduction of inequalities

(4) Encouragement to save more

ANS B

Q.47 Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend Rs. 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be Rs. 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world’s large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at Rs. 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

Identify direct taxes from the following :

(A) Goods and Services Tax

(B) Corporate Tax

(C) Capital Gains Tax

 (D) Value Added Tax

Choose the correct answer from the options given below:

(1) (A) and (B) only

(2) (&), (B) and (C) only

(3) (B) and (C) only

(4) (B) and (D) only

ANS C

Q.48 Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend Rs. 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be Rs. 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world’s large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at Rs. 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

Given the information in the passage, find out the fiscal deficit:

(1) Rs. 39,44,909

(2) Rs. 22,83,713

(3) Rs.18,84311

(4) Rs. 16,61,19

ANS D

Q.49 Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend Rs. 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be Rs. 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world’s large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at Rs. 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

Match List - I with List – II

Choose the correct answer from the options given below:

(1) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(2) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

(3) (A)-(III), (B)-(I), (C)-(II), (D)-(IV)

() (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

ANS A

Q.50 Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend Rs. 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be Rs. 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world’s large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at Rs. 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

Which one of the following statement is true?

(1) The lowest percentage-wise increase in allocation is seen for the Ministry of Jal Shakti

(2) The highest percentage-wise increase in allocation is seen for the Ministry of Communications

(3) The budget has relied heavily on loans from the National Small Savings Fund

(4) The government has not done well in collection of tax revenues

ANS B