Economic & Social Issues : Practice Questions and Answers

The correct answer is A: 1, 2 and 3 only.

• Statement 1 is CORRECT: GVA of agriculture and allied sectors at current prices rose from ₹1,502 thousand crores in 2011-12 to ₹4,878 thousand crores in 2023-24 — a growth of approximately 225%. This reflects both real output growth and inflationary trends.
• Statement 2 is CORRECT: GVO at constant prices increased by around 54.6%, from ₹1,908 thousand crores to ₹2,949 thousand crores, indicating real productivity growth in the sector after eliminating inflation.
• Statement 3 is CORRECT: Banana overtook mango in 2023-24 as the top contributor to GVO in the fruit group. Bananas are grown year-round, have a shorter gestation period, and serve both domestic and export markets consistently. Mangoes, being seasonal and weather-dependent, have a relatively lower GVO despite popularity.
• Statement 4 is INCORRECT: The contribution of fishing and aquaculture has not declined. It has shown consistent growth driven by increasing seafood demand, technological advancements, and government support for the blue economy.

Note: GVA measures the contribution of a sector excluding taxes and subsidies. GVO represents the total value of goods and services produced including intermediate consumption.

The correct answer is A: 1 and 2 only.

• Statement 1 is CORRECT: Fiscal deficit for FY26 is projected at 4.5% of GDP, reduced from 5.1% in FY25, reflecting fiscal consolidation.
• Statement 2 is CORRECT: The tax exemption limit under the new tax regime has been raised to ₹12 lakh annually.
• Statement 3 is INCORRECT: No 50% subsidy on EV manufacturing was announced. The government proposed EV incentives, but not at this level. GST on EVs remains at 5% to encourage adoption.

Additional Information:

• ₹5,000 crore allocated for green energy investments.
• The budget emphasized fiscal prudence while promoting green and digital economy solutions.

The correct answer is B: IPPB (India Post Payments Bank).

IPPB was launched by the Government of India to provide financial inclusion services through the extensive post office network. It operates under the Department of Posts, Ministry of Communications, and was inaugurated by Prime Minister Narendra Modi on September 1, 2018.

IPPB leverages postmen and Gramin Dak Sevaks to deliver banking and financial services at citizens' doorsteps, especially in rural and remote areas. Services include savings accounts (no minimum balance), money transfers, utility bill payments, insurance products, and micro-ATM services.

Key facts:

• Present in 1.55 lakh+ post offices; 1.35 lakh+ in rural areas.
• Uses Aadhaar-enabled Payment Systems (AePS), QR code-based biometric authentication, and UPI integration.
• Started with 650 branches; 100% owned by the Government of India.
• Assists in Direct Benefit Transfer (DBT) implementation to ensure subsidies reach beneficiaries without leakages.
• Operates on a paperless banking model promoting digital transactions and financial literacy.

The correct answer is E: 1 only.

• Statement 1 is CORRECT: A new National Health Insurance Scheme with ₹1 lakh crore was announced targeting rural families. Total health expenditure in the budget is set at ₹3 lakh crore.
• Statement 2 is INCORRECT: A National Education Mission was announced, but the allocation was ₹50,000 crore (not ₹80,000 crore).
• Statement 3 is INCORRECT: No new IITs or IIMs were announced in the budget. The focus was on expanding existing research centers. A new digital learning scheme was announced to enhance online education.

The correct answer is E: 1 only.

• Statement 1 is CORRECT: MSP for major crops was increased by 12% to boost farmer incomes.
• Statement 2 is INCORRECT: A new Infrastructure Fund was announced, but the amount was ₹2 lakh crore (not ₹2.5 lakh crore) and it was not exclusively for rural roads and port connectivity.
• Statement 3 is INCORRECT: ₹25,000 crore was allocated to PSBs to enhance their lending capacity, not specifically to improve capital adequacy ratios.

Additional Information:

• A ₹1.4 lakh crore allocation for Pradhan Mantri Awas Yojana was announced for affordable housing.
• The Infrastructure Fund will cover both urban and rural areas in a phased manner.

The correct answer is C: 4 only.

Statements 1, 2, and 3 are all correct — the Lok Sabha passed the Bill on September 20, 2023; the Rajya Sabha passed it on September 21, 2023 with 215 votes in favour and none against.

Statement 4 is INCORRECT: The Bill reserves at least 33% (not 35%) of seats for women in the Lok Sabha and state legislative assemblies. The Bill passed both houses almost unanimously with just two votes against.

In News: President Droupadi Murmu gave assent to the Nari Shakti Vandan Adhiniyam (128th Constitutional Amendment Bill), making it an Act.