Poverty, Planning, Finance and Economic/Social Development (Part-I)

Total Questions: 50

1. Which one of the following Five Year Plans recognised human development as the core of all development efforts? [1995]

(a) The Third Five Year Plan
(b) The Fifth Five Year Plan
(c) The Sixth Five Year Plan
(d) The Eighth Five Year Plan

Correct Answer: (d) The Eighth Five Year Plan

Solution:In the eight five year plan (1992-1997), the top priority was given to the development of the human resources i.e., employment, education, and public health.

In eighth five year plan share of public sector in total investment had declined considerably to about 34.%.

2. Which of the following are among the non-plan expenditures of the Government of India? [1995]

1. Defence expenditure

2. Subsidies

3. All expenditures linked with the previous plan periods

4. Interest payment

Codes:

(a) 1 & 2
(b) 1 & 3
(c) 2 & 4
(d) 1, 2, 3 & 4

Correct Answer: (d) 1, 2, 3 & 4

Solution:Non-plan expenditures include non-developmental expenditure (interest payment, subsidies, defence expenditure, civil administration), developmental expenditure and expenditure incurred on projects which remained unfinished in the earlier plans.

3. What is the annual rate aimed in the Eighth Five Year Plan : [1995]

(a) 5.6%
(b) 6%
(c) 6.5%
(d) 7%

Correct Answer: (a) 5.6%

Solution:The targeted annual growth rate was 5.6% but the actual growth rate was 6.7%.

4. The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from: [1995]

(a) balance from current revenue
(b) contribution of public enterprises
(c) government borrowings
(d) deficit financing

Correct Answer: (d) deficit financing

Solution:Financing of Eighth five year plan outlay In the Public sector (Rupees in crores).

Period	Domestic	Budgetory	Resources		External Resources	Deficit financing	Aggregate Resources
Period	Balance from Current revenues	Surpluses of Public enterprises	Capital Receipts	Total domestic resources	External Resources	Deficit financing	Aggregate Resources
(1992-97)	(-)39563 (-10.4)	131449 (34.5)	240215 (63.1)	332101 (87.2)	19234 (5.1)	33037 (8.7)	380524

5. The New Exim Policy announced in 1992, is for period of: [1995]

(a) 3 years
(b) 4 years
(c) 7 years
(d) 5 years

Correct Answer: (d) 5 years

Solution:The New Exim Policy was for five years (April 1, 1992-March 31, 1997).

6. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). [1996]

Assertion (A): An important policy instrument of economic liberalization is reduction in import duties on capital goods.

Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.

In the context of the above two statements, which one of the following is correct?

(a) Both A & R are true & R is the correct explanation
(b) Both A & R are true R is not a correct explanation
(c) A is true but R is false
(d) A is false but R is true

Correct Answer: (a) Both A & R are true & R is the correct explanation

Solution:Both statements are correct and explain one of the instruments to liberalise the Indian economy.

7. The Eighth Five Year Plan is different from the earliest ones. The critical difference lies in the fact that: [1996]

(a) it has a considerably larger outlay compared to the earlier plans
(b) it has a major thrust on agricultural and rural development
(c) considerable emphasis is placed on infrastructure growth
(d) industrial licensing has been abolished

Correct Answer: (b) it has a major thrust on agricultural and rural development

Solution:Eighth Five Year Plan (1992-97) had a bigger outlay with energy being given 26.6% of total outlay to a cheque a targeted growth rate of 6.78% per annum.

8. Consider the following statements: [1996]

Most international agencies which find Development Programme in India on intergovernmental bilateral agreements, mainly provide:

1. Technical assistance

2. Soft loans which are required to be paid back with interest

3. Grants, not required to be paid back

4. Food assistance to be paid back

(a) 2 & 4 are correct
(b) 1, 2 & 3 are correct
(c) 1, 2 & 4 are correct
(d) 3 & 4 are correct

Correct Answer: (b) 1, 2 & 3 are correct

Solution:A soft loan is a loan with a below market rate of interest. It also includes concessions to borrowers such as long repayment periods or interest holidays. Technical assistance is aid involving highly educated or trained personnel, such as doctors, who are moved into a developing country to assist with a program of development.

Food assistance is given to countries in urgent need of food supplies, especially if they have just experienced a natural disaster. Grant is usually given to governments through individual countries, international aid agencies and through multilateral institutions such as the world Bank and by through development charities.

9. Consider the following items imported by India: [1996]

1. Capital goods

2. Petroleum

3. Pearls and precious stones

4. Chemicals

5. Iron and Steel

The correct sequence of the decreasing order of these items (as per 94-95 figures), in terms of value is:

(a) 1, 2, 3, 4, 5
(b) 1, 2, 4, 3, 5
(c) 2, 1, 3, 4, 5
(d) 2, 1, 4, 5, 3

Correct Answer: (d) 2, 1, 4, 5, 3

Solution:Value of import in India as per 94-95 figures

1. Petroleum oils and oils US$ 3,285,560.58 million obtained from bituminou

2. Petroleum oils oils, etc.-US $ 2,642,351.87 millions (excl. crude), Preparation

3. Diamonds non-industrial-US $ 1,500, 668.80 million unworked or simply swan

10. The Sixth and the Eighth Five Year Plans covered the period 1980-1985 and 1992-1997 respectively. The Seventh Five Year Plan covered the period: [1997]

(a) 1987-1992
(b) 1986-1991
(c) 1985-1990
(d) 1988-1994

Solution:Period between 1990-92 was second plan holiday. The first plan holiday was between 1966-69.

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