Daily Quiz: UPSC Prelims Marathon – February 6, 2018

Laffer curve explains that with the increase in tax rare the revenue will increase but at certain point with increasing tax rate the revenue starts declining.

Here ‘ T’ refers optimal tax rate.

Distribution of Livestock in India:

Poultry: 55%

Sheep and goats: 18%

Cattle and buffaloes: 26%

Pigs: 0.9%

Others: 0.2%

• Cotton textile industry and fertilizer industry comes under manufacturing sector.

The period between 1991-2003 is called as “Golden Revolution”, during this period planned investment in horticulture became highly productive and sector emerged as a sustainable livelihood option.

It is illegal to transact using them in place of legal tender, however holding cryptocurrencies are not illegal in India, therefore option ‘A’ is correct and option ‘B’ and ‘C’ are incorrect.

Income earned from trading crypto currencies are taxable.

Highest share of Subsidies allocated to Food subsidies (Rs.1,69,323 crores), followed by Fertilizer subsidies (Rs.70,979.85 crores),  Petroleum subsidies (Rs. 24,932 crores), Interest subsidies.

The funds which are raised from other than budgetary allocation are called as extra budgetary funds. They are not included in Budget statements of revenue and receipt, therefore they are not included in fiscal deficit calculations so statement 2 is correct.

For ex: Internal sources of central PSU’s such as profits, borrowings etc… Borrowing includes funds raised from issuing tax free bonds.

Statement 1 is incorrect:  Viability Gap Funding (VGF) means a grant one-time or deferred, provided by government (Budgetary allocation) to support infrastructure projects that are economically justified but fall short of financial viability. The lack of financial viability usually arises from long gestation periods and the inability to increase user charges to commercial levels. Infrastructure projects also involve externalities that are not adequately captured in direct financial returns to the project sponsor. Through the provision of a catalytic grant assistance of the capital costs, several projects may become bankable and help mobilise private investment in infrastructure.