Q1. With reference to the Finance Commission in India, consider the following statements:
- It is constituted under Article 280 of the Constitution.
- It recommends vertical as well as horizontal devolution between Centre and States.
- It can recommend grants to local bodies.
How many of the statements given above are correct?
A. Only one
B. Only two
C. All three
D. None
Correct Answer: (C) All three
Explanation:
- Statement 1: Correct — Article 280 provides for Finance Commission.
- Statement 2: Correct — FC recommends vertical (Centre–State) and horizontal (among States) devolution.
- Statement 3: Correct — FC recommends grants to local bodies since the 73rd/74th Amendments.
Q2. Assertion–Reason Type
Assertion (A): The Forest Rights Act (FRA), 2006 was enacted to recognise pre-existing rights of forest-dwelling communities.
Reason (R): Colonial forest laws had curtailed customary access of tribals to forest land and resources.
A. Both A and R are true and R explains A
B. Both A and R are true but R does not explain A
C. A is true, R is false
D. A is false, R is true
Correct Answer: (A)
Explanation:
FRA 2006 explicitly aims to correct historical injustice caused by colonial forest laws that restricted traditional forest access.
Q3. With reference to Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), consider the following statements:
- It is implemented by the Ministry of Rural Development.
- It focuses only on credit delivery to rural poor households.
- It promotes institution-building through SHGs.
Which of the statements are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Correct Answer: (B) 1 and 3 only
Explanation:
- Statement 1: Correct — MoRD implements DAY-NRLM.
- Statement 2: Incorrect — It covers livelihoods, skills, and capacity-building beyond credit.
- Statement 3: Correct — SHG institution-building is core.
Q4. With reference to the mountain gorilla (Gorilla beringei beringei), consider the following statements:
- It is found only in Central Africa.
- It inhabits high-altitude montane forests.
- It is classified as Critically Endangered by the IUCN.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Correct Answer: (D) 1, 2 and 3
Explanation:
All statements are correct. Mountain gorillas are restricted to Central African high-altitude forests and remain critically endangered.
Q5. Which of the following best reflects the fiscal risk of open-ended subsidies?
A. Higher capital expenditure
B. Improved revenue buoyancy
C. Structural revenue burden
D. Reduced fiscal deficit
Correct Answer: (C)
Explanation:
Open-ended subsidies create recurring obligations, leading to long-term structural fiscal burdens and crowding out productive expenditure.
