GK Test - 38

Nirmala Sitharaman presented the Union Budget for the first time in 2019. Since then, she has presented the Union Budget annually until 2023. Therefore, by 2024, she would have presented the Union Budget for the sixth time.

• Step 1: Calculate the percentage increase in Defence Outlay


• Step 2: Identify the Defence Outlay in the previous year and the Defence Outlay in Budget 2024


• Step 3: Use the formula: Percentage Increase = ((New Value - Old Value) / Old Value) * 100


• Step 4: Substitute the values into the formula and calculate the percentage increase


• Step 5: Compare the calculated percentage increase with the given options to find the correct answer

Based on the calculations, the percentage increase in Defence Outlay as announced in Budget 2024 is 11.1%. Therefore, the correct answer is option C: 11.1%.

Revised Estimate of Fiscal Deficit in Budget 2024

• Original Estimate: The original estimate of the fiscal deficit as a percentage of GDP in Budget 2024 was 5.8%.


• Revised Estimate: The revised estimate of the fiscal deficit as a percentage of GDP in Budget 2024 is 6.5%.


• Reason for Revision: The fiscal deficit was revised upwards due to increased government spending and lower than expected revenue collections.


• Impact: A higher fiscal deficit can lead to concerns about the government's ability to meet its financial obligations and may put pressure on inflation and interest rates.


• Policy Implications: The government may need to implement measures to control spending, boost revenue generation, and manage the fiscal deficit to ensure economic stability.

Revised Fiscal Deficit in Budget 2024 Comparison:

• Original Estimate: The previous estimate of the fiscal deficit in Budget 2024 was X%.


• Revised Estimate: The revised fiscal deficit in Budget 2024 is Y%, which is different from the original estimate.

Comparison of Revised Fiscal Deficit:

• Decreased by 1.3%: The revised fiscal deficit in Budget 2024 has decreased by 1.3% compared to the previous estimate.


• Increased by 0.5%: The revised fiscal deficit in Budget 2024 has increased by 0.5% compared to the previous estimate.


• Remained Unchanged: The revised fiscal deficit in Budget 2024 has remained unchanged from the previous estimate.


• Increased by 1.8%: The revised fiscal deficit in Budget 2024 has increased by 1.8% compared to the previous estimate.

Therefore, the correct answer is option B: Increased by 0.5%. This means that the revised fiscal deficit in Budget 2024 is 0.5% higher than the previous estimate.

Main Challenge in Compressed Biogas (CBG) Blending Mandate

• Limited Availability: One of the main challenges mentioned in the statement is the limited availability of CBG. This can be attributed to the low production of CBG facilities and the insufficient infrastructure for its distribution.


• Transport Challenges: Another key challenge is the transport challenges associated with CBG. The lack of a well-established transport network for CBG can hinder its distribution to blending facilities.

These challenges pose significant obstacles to the successful implementation of the CBG blending mandate, as they impact the overall supply chain and availability of CBG for blending with conventional fuels.

Reasons why the private sector will have to step in for maintaining growth momentum:

• Insufficient capex: The 11.1% higher capex budgeted for infrastructure may not be enough to meet the growing demands of infrastructure development. This gap in funding could lead to a need for private sector involvement to bridge the financial shortfall.


• Lack of government funds: The statement suggests that the government lacks the funds to fully support infrastructure projects. In such a scenario, the private sector may need to contribute financially to ensure the continued progress of infrastructure development.


• Traditionally funded by the private sector: Infrastructure projects are often funded by the private sector. Given the higher capex budget and the need for sustained growth momentum, it is likely that the private sector will play a significant role in financing and executing these projects.

Overall, due to the challenges posed by insufficient capex, lack of government funds, and the traditional role of the private sector in funding infrastructure projects, it is suggested that the private sector will need to step in to maintain growth momentum in the context of the 11.1% higher capex budgeted for infrastructure.

Investments in Preventing Foot and Mouth Diseases and Improving Milch Animal Yield in India

• Addressing a Key Factor Limiting Milch Animal Productivity: Foot and mouth diseases can significantly impact the health and productivity of milch animals. By investing in preventing these diseases, it helps address a key factor that limits milch animal productivity.


• Reducing the Number of Milch Animals: By preventing foot and mouth diseases, the number of milch animals affected by these diseases decreases, leading to a healthier population of milch animals overall.


• Enhancing the Quality of Feed for Milch Animals: Investments in preventing diseases can also lead to improved animal health, which in turn can result in better absorption of nutrients from feed, ultimately contributing to higher milch animal yield.

Overall, investments in preventing foot and mouth diseases play a crucial role in improving India's milch animal yield by addressing key factors that limit productivity, reducing the number of affected animals, and enhancing the quality of feed for better health and performance.

Union Budget Presentation

• House of the Parliament: Lok Sabha

Detailed Explanation

• The Union Budget, also known as the Annual Financial Statement, is presented in the Lok Sabha by the Finance Minister of India.


• It is one of the most important events in the parliamentary calendar and outlines the government's revenue and expenditure for the upcoming financial year.


• The Finance Minister presents the budget, which includes details of taxes, allocations for various sectors, and overall economic policies.


• After the budget is presented in the Lok Sabha, it is then debated and discussed by Members of Parliament before it is approved.


• Once approved by the Lok Sabha, the budget is then sent to the Rajya Sabha for further discussion and approval.


• Ultimately, the Union Budget needs to be passed by both houses of Parliament before it becomes law.

Explanation:

• Period covered in the Union Budget: April to March

Detailed

• The Union Budget in India covers the fiscal year, which runs from April 1st to March 31st of the following year.


• During this period, the government presents its budget for the upcoming financial year, outlining its revenue and expenditure plans.


• This budget includes allocations for various sectors, taxes, subsidies, and other financial aspects of the government's functioning.


• It is an important document that sets the financial direction for the government and impacts various stakeholders in the economy.


• Overall, the Union Budget for India covers the period from April to March each year.

Annual Financial Statement

• Definition: The Annual Financial Statement is a document that outlines the estimated receipts and expenditures of the government for a particular fiscal year.


• Importance: It provides a comprehensive overview of the government's financial plans and priorities for the upcoming year.


• Contents: The statement includes details of revenue sources, planned expenditures, deficit projections, and other financial information.


• Presentation: The Annual Financial Statement is usually presented by the Finance Minister during the budget session in the parliament.


• Approval: Once presented, the statement needs to be approved by the parliament before it can be implemented.