Doubt Clearance Thread: UPSC 2021

When we talk about federation , we put American federation at the highest pedestal and its ideal as well - maybe one of the reason is because its oldest. But as American federation is indestructible union of indestructible states , I beleive its neccessary for a federation to be indestructible in nature.

@Villanelle Thank you

@balwintejas Thank you.. As you said, if option was "union of indestructible states" then it would have been more appropriate. Otherwise with given option in question, I am still not convinced to mark it as correct.

Not sure but, most sources seem to be of this opinion. Essentially, a federation offers no right to secede, they say. While a confederation does.

Many people have liked this statement so it could be right, but isn't the American federation is "indestructible union composed of indestructible states"? Please correct me.

I am so sorry. I wanted to write that federation is indeed indestructible. I don't know what I was thinking at that time, that I just fumbled with the sentence and did not even cross check before posting.

I have corrected it. 

Hi, 

Does anyone know if Vision will be coming out with additional 5 tests (Over and above the 35) like last time?

Please explain option 'c' and 'd'

Are subsidies part of transfer payment?

Money bills are government bills and ministers represent government, so as a convention ministers introduce money bills.  
Also, President's declaration is necessary prior to the introduction of a money bill.

A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. 

Generally, the phrase "transfer payment" is used to describe government payments to individuals through social programs such as welfare, student grants, and even Social Security. However, government payments to corporations—including unconditional bailouts and subsidies—are not commonly described as transfer payments.

Source: Investopedia

I think the answer is D. The money raised through monetization has to be a part of fiscal deficit since it's mainly used to bring down fiscal deficit which would be a bit difficult if it's not considered to be a part of fiscal deficit. And it doesn't raise the public debt since the deficit is reduced by printing more money or by getting money through OMOs and not through debt.

Option C is very wrong as the very purpose of monetization was deficit financing as evident during the Covid time. 

Option D is probably wrong because monetization may lead to inflation and devaluation and ultimately, net public debt will remain the same. The reason why monetization through printing money was banned under frbm act.

However Option B seems more wrong considering that they can borrow only for short terms and so "best" option could be D

President recommendation is necessary. 

For the first part,@AzadHindFauz had also shared a book's clip a long time before that it's not necessary to be introduced by a minister. Laxmikanth only says so.