2018 GS Paper I, all questions

UPSC Prelims 2018 · GS Paper I

Question 9: Economy and Social Development

Consider the following statements :

  1. 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. 2.The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
  3. 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 ?

a1 only
b2 and 3 only
c1 and 3 only
d1, 2 and 3

AnswerUPSC’s answer is (c).

The N.K. Singh FRBM Review Committee proposed a combined government debt of 60 per cent of GDP by 2023, split as 40 per cent for the Centre and 20 per cent for the States. Under Article 293(3), a State that still owes a loan to the Centre, or whose loan the Centre has guaranteed, must get the Centre's consent before borrowing again. Statement 2 turns the position around: the Centre's liabilities are the much larger, not the States'.

  • 1. The committee recommended 60 per cent combined, 40 per cent Centre and 20 per cent States, by 2023.
  • 2. The Centre's liabilities are larger than the States'; the figures are the wrong way round.
  • 3. Article 293(3) requires the Centre's consent while a State owes the Centre a loan.

How you could have got this

  1. If you were sure statement 2 is not correct, (b) and (d) go: each of them includes 2.

    What you needed to know: The Centre's liabilities are larger than the States'; the figures are the wrong way round.

  2. Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.

    What you needed to know: Article 293(3) requires the Centre's consent while a State owes the Centre a loan.

Only (c) is left. You didn’t need statement 1.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Incomplete: statement 3 is also correct.
  • (b) Wrong: statement 2 is false.
  • (c) Right: statements 1 and 3 are correct.
  • (d) Wrong: statement 2 is false.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2018, General Studies Paper I, Series A. The paper on upsc.gov.in.