KPSC KAS PRELIMS OBJECTION QUESTIONS PAPER 1

Question

2. With reference to the Indian National Movement in Karnataka, consider the following:

A. The first session of Mysore Congress was held in Shivapura in 1938.
B. T. Siddalingayya was its President.
C. Around 1000 people participated.
D. He was arrested by the British after hoisting the flag.

How many of the above propositions are incorrect?

1. Only one

2. Only two

3. Only three

4. None of the above

Answer: (3) Only three

Explanation:

A. The first session of Mysore Congress was held in Shivapura in 1938.

• Incorrect: The first session of the Mysore Congress was not held in Shivapura in 1938. Shivapura is famous for the Dhwaja Satyagraha that took place in 1938, but the Mysore Congress had earlier sessions, starting from 1917 in Bangalore.

B. T. Siddalingayya was its President.

• Correct: T. Siddalingaiah was indeed the President of the Mysore Congress during the Shivapura session in 1938.

C. Around 1000 people participated.

• Incorrect: The actual participation was much larger, with around 10,000 people attending the flag hoisting at Shivapura.

D. He was arrested by the British after hoisting the flag.

• Incorrect: T. Siddalingaiah was arrested by the British before he could hoist the flag, and M.N. Jois hoisted the flag instead.

Conclusion:

• Incorrect statements: A, C, D

6. Arrange the following items with respect to the Union Budget in India in descending order (highest to lowest ₹ crore):

A. Revenue Expenditure
B. Capital Expenditure
C. Revenue Receipts
D. Capital Receipts

Options:

1. A, C, D, B

2. A, C, B, D

3. C, A, D, B

4. C, A, B, D

Answer: (1) A, C, D, B

Explanation:

Based on the Union Budget for 2024-25, here is the detailed arrangement of the components in descending order of their financial allocations (₹ crore):

1. Revenue Expenditure

• Allocation: ₹40.57 lakh crore

• Details: This is the largest component of the budget, covering expenses like subsidies, salaries, pensions, and interest payments.

2. Revenue Receipts

• Allocation: ₹33.71 lakh crore

• Details: This includes income from taxes (like income tax, GST) and non-tax revenue sources (like dividends, profits).

3. Capital Expenditure

• Allocation: ₹13.70 lakh crore

• Details: This is allocated for investments in infrastructure, machinery, and other long-term assets. It saw a significant increase as part of the government's focus on infrastructure development.

4. Capital Receipts

• Allocation: ₹22.03 lakh crore

• Details: This includes borrowings, loans, and disinvestment proceeds, which are crucial for funding capital expenditure and bridging the fiscal deficit.

Final Arrangement:

A. Revenue Expenditure > C. Revenue Receipts > D. Capital Receipts > B. Capital Expenditure

This arrangement reflects the budget allocations as per the 2024-25 Union Budget of India

Thus, the correct descending order is A, C, D, B.

Answer 1

9. Which of the following is/are correct matches?

A. Devaluation of a currency - 

Improves the competitiveness of the domestic exports in foreign countries

B. Credit rating agencies -

Regulated by the Reserve Bank of India

C. Acquiring new technology  - 

Capital expenditure

How many of the above pairs is/are correctly matched?

Only one

Only two

All three

None of the above

Answer: (2) Only two

Explanation:

A. Devaluation of a currency improves the competitiveness of domestic exports in foreign countries

Correct: Devaluation lowers the value of a country's currency relative to others, making its exports cheaper and more competitive in the international market. This can boost export volumes.

B. Credit rating agencies regulated by the Reserve Bank of India

Incorrect: In India, credit rating agencies are primarily regulated by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India. However, the RBI may oversee aspects related to the financial sector where ratings by CRAs are involved, but the primary regulator is SEBI.

C. Acquiring new technology is Capital Expenditure

Correct: Acquiring new technology is considered capital expenditure as it involves investing in assets that will provide benefits over several years.

Conclusion:

Correct pairs: A and C

Incorrect pair: B

Answer: Only two of the pairs are correctly matched.

Answer 2

17. Which of the following statements is/are correct about Fiscal Responsibility and Budget Management Act (FRBM) 2003?

A. The FRBM Act made it mandatory for the Government to place Long Term Fiscal Policy Statement, Microeconomic Framework Statement, and Fiscal Policy Strategy Statement along with the Union Budget documents in Parliament annually.

B. The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue, and the total outstanding liabilities be projected as a percentage of Gross State Domestic Product (GDP) in the medium-term fiscal policy statement.

C. Under no circumstances can the set targets of fiscal deficits and revenue be exceeded.

D. After the enactment of FRBM Act, Government has met the targets only twice till now.

Options:

Only one statement is correct

Only two statements are correct

Only three statements are correct

None of the above

Answer: (2) Only two statements are correct

Explanation:

Statement A: The FRBM Act made it mandatory for the Government to place Long Term Fiscal Policy Statement, Microeconomic Framework Statement, and Fiscal Policy Strategy Statement along with the Union Budget documents in Parliament annually.

Correct: The government is required to present these documents annually under the FRBM Act.

Statement B: The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue, and the total outstanding liabilities be projected as a percentage of Gross State Domestic Product (GDP) in the medium-term fiscal policy statement.

Incorrect: The FRBM Act requires these to be projected as a percentage of the national GDP, not Gross State Domestic Product (GSDP).

Statement C: Under no circumstances can the set targets of fiscal deficits and revenue be exceeded.

Incorrect: The FRBM Act allows for deviations from fiscal deficit targets in exceptional circumstances, such as natural calamities or national security concerns.

Statement D: After the enactment of the FRBM Act, the Government has met the targets only twice till now.

Correct: The government has only met the fiscal deficit targets a few times since the enactment of the FRBM Act.

After the enactment of the Fiscal Responsibility and Budget Management (FRBM) Act in 2003, the Government of India successfully met the fiscal deficit targets twice—once in the fiscal year 2007-08 and again in the fiscal year 2017-18.

In 2007-08, India achieved a fiscal deficit of 2.7% of GDP, meeting the FRBM target of 3%. The target was met again in 2017-18 when the fiscal deficit was 3.5% of GDP, aligning with the revised FRBM target.

Conclusion:

Correct Statements: A and D

Incorrect Statements: B and C

Answer: Only two statements are correct.