Q140. Match the Finance Commissions with their Chairpersons:
A. Eleventh; B. Twelfth; C. Thirteenth; D. Fourteenth.
Names: 1. C. Rangarajan; 2. Y. V. Reddy; 3. A. M. Khusro; 4. Vijay Kelkar.
[UPPSC PCS Prelims 2025, General Studies Paper I]
(A) A-3, B-1, C-4, D-2
(B) A-2, B-3, C-4, D-1
(C) A-3, B-2, C-1, D-4
(D) A-1, B-3, C-2, D-4
Answer: (A) A-3, B-1, C-4, D-2
Explanation: A. M. Khusro led the Eleventh Finance Commission, C. Rangarajan the Twelfth, Vijay Kelkar the Thirteenth and Y. V. Reddy the Fourteenth. Remembering their award periods from 2000–05 through 2015–20 helps separate the chairpersons and associated tax-sharing recommendations.
Q139. What percentage of Madhya Pradesh’s total expenditure budget for 2023–24 was allocated to education?
[MPPSC State Service Prelims, 16 February 2025, Paper I]
(A) 12.22%
(B) 10.5%
(C) 18.0%
(D) 15.0%
Answer: (C) 18.0%
Explanation: The examined state budget identified education as receiving about 18% of Madhya Pradesh’s expenditure allocation. Such sectoral shares reveal spending priorities, although actual expenditure can diverge from estimates. The percentage belongs to the particular budget year and should not be generalized to later budgets.
Q138. In which year was India’s Fiscal Responsibility and Budget Management Act enacted?
[SSC CHSL Tier I, 29 November 2025, Shift 3]
(A) 2007
(B) 2001
(C) 2003
(D) 2005
Answer: (C) 2003
Explanation: The FRBM Act was enacted in 2003 to strengthen fiscal transparency, budgeting discipline and responsibility for deficits. It required fiscal-policy statements alongside the Union Budget and provided a framework for monitoring borrowing and debt, although targets have been amended over time.
Q137. What is the primary objective of government fiscal policy?
[SSC Stenographer, 7 August 2025, Shift 1]
(A) To regulate money supply and interest rates
(B) To promote trade alone
(C) To influence economic activity using government spending and taxes
(D) To supervise stock exchanges
Answer: (C) To influence economic activity using government spending and taxes
Explanation: Government purchases, transfers and taxation influence household spending, private investment and total output. This makes fiscal policy a tool for stabilising demand and supporting public services. Interest-rate setting belongs mainly to monetary policy, while securities supervision serves a different regulatory purpose.
Q136. Statutory grants under Article 275 to States are primarily recommended by which institution?
[SSC Stenographer, 8 August 2025, Shift 2]
(A) National Development Council
(B) Finance Commission
(C) Ministry of Finance
(D) NITI Aayog
Answer: (B) Finance Commission
Explanation: Article 275 deals with grants-in-aid from the Union to States, subject to parliamentary appropriation. The Finance Commission recommends principles and amounts for such grants in its fiscal-federalism mandate. Its constitutional foundation is Article 280, which distinguishes it from an executive planning body.
Q135. As of 1 May 2025, which of these persons was NOT a full-time member of India’s Sixteenth Finance Commission?
[RRB NTPC Undergraduate CBT-I, 8 September 2025, Shift 2]
(A) Annie George Mathew
(B) Ajay Narayan Jha
(C) Manoj Panda
(D) Soumya Kanti Ghosh
Answer: (D) Soumya Kanti Ghosh
Explanation: Soumya Kanti Ghosh was associated with the Sixteenth Finance Commission as a part-time member. The other listed names were full-time members at the date specified. Such distinctions are important because a Finance Commission consists of a chairperson and appointed specialists with differing roles.
Q134. According to the Union Budget presented on 1 February 2025, ordinary income up to what level could qualify for nil income tax under the new regime through rebate?
[RRB NTPC Graduate CBT-I, 17 June 2025, Shift 1]
(A) ₹10 lakh
(B) ₹12 lakh
(C) ₹15 lakh
(D) ₹12.75 lakh
Answer: (B) ₹12 lakh
Explanation: The 2025 Budget provided a rebate resulting in nil income tax for eligible individuals with ordinary taxable income up to ₹12 lakh under the new regime. The effective benefit arises through tax rebate provisions, and the higher salary figure sometimes cited includes standard deduction.
Q133. Which was NOT an intended feature of the Income-tax Bill introduced in Parliament in February 2025?
[RRB NTPC Graduate CBT-I, 16 June 2025, Shift 2]
(A) Logical reorganisation of sections
(B) Discarding existing taxation principles without maintaining continuity
(C) Clearer and simpler statutory language
(D) Elimination of redundant provisions
Answer: (B) Discarding existing taxation principles without maintaining continuity
Explanation: The proposed income-tax legislation emphasised readability, streamlined numbering and removal of unnecessary repetition without arbitrarily abandoning the underlying policy architecture. Simplification of tax law concerns presentation and administration as well as legislative substance. The option proposing destruction of continuity contradicts that aim.
Q132. According to the Finance Ministry figure cited in this exam, what percentage of India’s population filed income-tax returns in FY 2023–24?
[RRB NTPC Graduate CBT-I, 14 June 2025, Shift 2]
(A) 66.8%
(B) 16.68%
(C) 6.68%
(D) 36.68%
Answer: (C) 6.68%
Explanation: The examination referred to 6.68% of the population as filing income-tax returns during the specified fiscal year. Return filing is not equivalent to actually owing positive income tax, since exempt or zero-liability taxpayers may also be required to submit returns.
Q131. Under the original FRBM framework, to what percentage of GDP was the Union fiscal deficit targeted to be reduced by 2008–09?
[RRB NTPC Graduate CBT-I, 14 June 2025, Shift 1]
(A) 4%
(B) 2%
(C) 3%
(D) 0.5%
Answer: (C) 3%
Explanation: The original FRBM fiscal-consolidation trajectory contemplated a deficit ceiling of 3% of GDP by 2008–09. Subsequent economic shocks and statutory changes altered timetables and targets. The question tests the original commitment rather than the fiscal-deficit level subsequently recorded.
