Consider the following statements:

  1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
  2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
  3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2018 Prelims]

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (c)        

Explanation:

  • The Fiscal Responsibility and Budget Management (FRBM) Review Committee chaired by Mr. N.K. Singh submitted its report in January 2017.
  • Debt to GDP ratio of 60% should be targeted with a 40% limit for the center and 20% limit for the states.
  • The targeted debt to GDP ratio should be achieved by 2023. Hence, statement 1 is correct.
  • The Central Government has domestic liabilities of 46.1% of GDP (2016-17) and as a percent of GDP, whereas States’ Government liabilities increased to 23.2 % at end-March 2016. Hence, statement 2 is not correct.
  • According to Article 293(3) as long as a State has outstanding borrowings from the Central Government, it is required to obtain Central Government’s prior approval before incurring debt. Hence, statement 3 is correct.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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