Economy (CDS-Solved Paper)

Devaluation of currency will be more beneficial if pricss of exports become cheaper to importers. A devaluation means that more local currency is needed to purchase imports and exporters get more local currency when they convert the export proceeds.

In other words, imports become more expensive and exporters earn more money. Hence, option (b) is correct.

A base year is the year used for comparison in the measure of a business activity or economic Index.

It gives an idea about changes in purchasing power and allows calculation of inflation-adjusted growth estimates. The change in base year done in every 7 to 10 years. Currently it is shifted from 2004-05 to 2011-12 in India.

1. Fiscal Deficit is the difference between total revenue and total
expenditure of the government is termed as fiscal deficit. It is an
indication of the total borrowings needed by the government.
Fiscal Deficit =Total Expenditure – Revenue Receipts and Non-debt Capital Receipts.

2. A Revenue Deficit occurs when realized net income is less than the
projected net income. This happens when the actual amount of revenue
and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditures. Revenue Deficit = Revenue
Expenditure – Revenue Receipts.

3. Effective Revenue Deficit is the difference between revenue deficit
and grants for creation of capital assets. The concept of effective revenue deficit has been suggested by the Rangarajan Committee on
Public Expenditure. Effective Revenue Deficit = Revenue Deficit – Grants for Creation of Capital Assets.

4. Primary Deficit refers to difference between fiscal deficit of the current
year and interest payments on the previous borrowings. Primary Deficit = Fiscal Deficit – Interest Payments.

Among states, the horizontal distribution of tax revenue is determined by the 14th Finance Commission through a formula. The Finance Commission formula for horizontal devolution is as below :

1. Fiscal Capacity or Income Distance (from 47.5% → 50%)
2. Population 1971 (25% → 17.5%)
3. Population 2011 (newly introduced by FFC-10%)
4. Area (10% → 15%)
5. Fiscal discipline (17.5%) → This has been removed
6. Forest cover (newly introduced by FCC-7.5%)
Hence, option (b) is true.

A Money Bill after having been passed by the Lok Sabha, and sent to Rajya Sabha for its recommendations, has to be returned to Lok Sabha by the Rajya Sabha, within a period of two weeks (fourteen days) from the date of its receipt, with or without recommendations.
Hence, option(a) is true.

Universal Basic Income (UBI) is a form of social security in which all citizens or residents of a country receive a regular, unconditional sum of money, either from a government or some other public institution, independent of any other income.

UBI has potential to reduce poverty, or even eradicate poverty. The essential principle behind basic income is the idea that all citizens are entitled to a livable income, whether or not they contribute to production and despite the particular circumstances into which they are born.

‘Pragati’ is a scheme of AICTE aimed at providing assistance for Advancement of Girls participation in Technical Education .

This is an attempt to give every young Woman the opportunity to further her education and prepare for a successful future by “Empowering Women Through Technical Education”.

It is basically to provide encouragement and support to Girl Child to pursue technical education.

Sansad Adarsh Gram Yojana (SAGY) is a village development project launched by Government of India in October, 2014, under which each Member of Parliament will take the responsibility of developing physical and institutional infrastructure in three villages by 2019.
Hence, option (b) is not correct.

The main objectives of SAGY are
(i) To trigger processes which lead to holistic development of the identified Gram Panchayats
(ii) To substantially improve the standard of living and quality of life of all sections of the population through - improved basic amenities, higher productivity, enhanced human development, better livelihood opportunities, reduced disparities, access to rights and entitlements, wider social mobilisation, enriched social capital.
(iii) To generate models of local level development and effective local governance which can motivate and inspire neighbouring Gram Panchayats to learn and adapt.

Literacy is meant as the ability to read and write. In India a person aged seven and above who can both read and write with understanding in any language is treated as literate.

A person who can read only but cannot write, is illiterate. The data provides details of state code, district code, area name, age-group, literates, illiterates, literates without education level, below primary, middle, matric, intermediate, pre-university/senior secondary, non-technical diploma or certificate not equal to degree, graduate and above and unclassified education level.

Rand/ZAR is the currency of South
Burundi - Franc
Libya - LibyanDinar
Sudan - Sudanese Pound
South Africa - Rand/ZAR