1. Name thescheme launched to provide free electricity connection to each household in theBihar in the next two years.

Answer: Har GharBijli Lagataar

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MCQ-> Read the following passage carefully and answer the questions based on it. Some words have been printed in bold to help you locate them while answering some of the questions.Notwithstanding the fact that the share of household savings to GDS is showing decline, still this segment is the significant contributor to GDS with 70% share. Indian households are among the most frugal in the world However, commensurate capital formation has not been taking place as a lion's share of household savings are being parked in physical assets compared to financial assets. The pattern of disposition of saving is an important factor in determining how the saved amount is utilized for productive purposes. The proportion of household saving in financial assets determines the channelisation of saving for investment in other sectors of the economy. However, the volume of investment of saving in physical assets determines the productivity and generation of income in that sector itself. Post-Independence era has witnessed a significant shift in deployment of household savings especially the share of financial assets increased from 26.39% in 1950 to 54.05% in 1990 may be on account of increased bank branch network across the country coupled with improved awareness of investors on various financial / banking products. However, contrast to common expectations, the share of financial assets in total household savings has come down from 54.05% to 50.21% especially in post reform period i.e. 1990 to 2010 despite providing easy access and availability of banking facilities compared to earlier years. The increased share of physical assets over financial assets (around 4%) during the last two decades is a cause of concern requires focused attention to arrest the trend. Traditionally, the Indians are risk-averse and prefer to invest surplus funds in physical assets such as Gold, Silver and lands. Nevertheless, considerable share of savings also owing to financial assets, which includes, Currency, Bank Deposits, Claims on Government, Contractual Savings, Equities The composition of household financial savings shows that the bank deposits (44%) continue to remain the major contributor along with the rise in the Contractual Savings, Claims on Government and Currency. Though there was gradual decline in currency holdings by the households i.e. 13.79% in 1970s to 9.30% in 2007, still the present currency holding level with households appears to be on high side compared to other countries. The primary reasons for higher currency holdings could be absence of banking facilities in majority villages (5.70 lakh villages)as well as hoarding of unaccounted money in the form of cash to circumvent tax laws. Though, cash is treated as financial asset, in reality, a major portion of currency is blocked and become unproductive. Bank deposits seemed to be the preferred choice mainly on account of its inbuilt features such as Safety, Security and Liquidity. Traditionally, the Household sector has been playing a leading role in the landscape of bank deposits followed by the Government sector. However, the last two decades has witnessed significant shift in ownership of Bank deposits. While there was improvement in Corporate and Government sectors' share by 8.30% and 7.20% respectively during the period 1999 to 2009, household sector lost a share of 13.30% in the post reform period. In the post independence era, Indian financial system was characterized by poor infrastructure and low level of financial deepening. Savings in physical assets constituted the largest portion of the savings compared to the financial assets in the initial years of the planning periods. While rural households were keen on acquiring farm assets, the portfolio of urban households constituted consumer durables, gold, jewellery and house property.Despite the fact that the household savings have been gradually moving from physical assets to financial assets over the years, still 49.79% of household savings are wrapped in unproductive physical assets, which is a cause of concern as the share of physical assets to total savings are very high in the recent years compared to emerging economies. This trend needs to be arrested as scarce funds are being diverted into unproductive segments. Of course, investment in Real estate sector can be treated as productive provided construction activity is commenced within reasonable time, but it is regrettably note that many investors just buy and hold it for speculation leading to unproductive investments. 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MCQ-> Read the following passage and provide appropriate answers for the questionsThe idea of demarcating certain areas within the country as special economic zones to promote investment and growth is not new. A large country unable to provide the kind of facilities and environment that can attract foreign investment throughout the country often finds it feasible and attractive to carve up some of its areas where such facilities can be provided. The laws and procedures for setting up new industries are waived to make the area business-friendly with developed infrastructure and a one-window interaction with government. In addition, huge tax benefits are promised to lure investors. China’s experience shows that if chalked out and implemented with care such a policy can accelerate the flow of capital and technology from abroad and thereby speed up growth. However, SEZs may not be the best option in all situations to clear the bottlenecks in growth. India’s experience with export processing zones (EPZs) bears this out. They have failed in India for the simple reason that the factors that made the SEZs successful in China have been absent here. In India, as in China, EPZs were thought of as a way of providing an escape route from the stranglehold of control that prevailed over the Indian economy. But even while promising to ease the rigours of controls, Indian policy-makers could not give up their penchant for micromanaging from the centre and undoing the promised relaxations with all kinds of qualifications and “guidelines”. Over last two decades India has evolved into a market economy and much of governmental control has disappeared, but the flow of foreign direct investment has not reached anywhere near the levels of China. Besides, infrastructure building has fallen far short of what is required. Even after three years of the enactment of the Electricity Act (2003), private investment in electricity generation is still a trickle with the states refusing to give up the monopoly of their electricity boards in the matter of purchase of the power generated. While swearing by growth, governments at both the centre and the states cite the fiscal responsibility laws to plead their helplessness in making the required investments to improve infrastructure. Given the situation, the SEZs have apparently been thought of as a simple way out. In its enthusiasm for SEZs the commerce ministry forgot two critical lessons of the Chinese experience, viz., that an SEZ must be of an adequate size to provide opportunities for reaping the benefits of large-scale operations and their number should be few. Every industry or economic activity worth its name is now seeking SEZ status. Proposals are now being floated to invite foreign educational institutions to come to India with promises of SEZ treatment! The finance ministry apprehends a loss of nearly 1,75,000 crore in direct taxes, customs duties and excise duties over the next five years.The objective of the author in writing the above passage seems to be to
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MCQ-> In making decisions about important questions, it is desirable to be able to distinguish between "strong" arguments and "weak" arguments. "Strong" arguments must be both important and directly related to the question. "Weak" arguments may not be directly related to the question and may be of minor importance or may be related to the trivial aspects of the question. Each question below is followed by three arguments numbered I, II and III. You have to decide which of the argument(s) is/are "strong". I.Should the Government restrict use of electricity for each household depending upon the requirement ? Arguments : I. Yes, this will help government tide over the problem of inadequate generation of electricity. II. No, every citizen has right to consume electricity as per their requirement as they pay for using electricity. III. No, the Government does not have the machinery to put such a restriction on use of electricity....
MCQ-> Governments looking for easy popularity have frequently been tempted into announcing give­a­ways of all sorts; free electricity, virtually free water, subsidized food, cloth at half price, and so on. The subsidy culture has gone to extremes. The richest farmers in the country get subsidized fertilizers. University education, typically accessed by the wealthier sections, is charged at a fraction of cost. Postal services are subsidized, and so are railway services. Bus fares cannot be raised to economical levels because there will be violent protest, so bus travel is subsidized too. In the past, price control on a variety of items, from steel to cement, meant that industrial consumer of these items got them at less than actual cost, while the losses of the public sector companies that produced them were borne by the taxpayer! A study done a few years ago, came to the conclusion that subsidies in the Indian economy total as much as 14.5 per cent of gross domestic product. At today's level, that would work out to about 1,50,000 crore. And who pay the bill? The theory­and the Political fiction on the basis of I which it is sold to unsuspecting voters­is that subsidies go the poor. and are paid for by the rich. The fact is that most subsidies go the 'rich' (defined in the Indian context as those who are above the poverty line), and much of the tab goes indirectly to the poor. Because the hefty subsidy bill results in fiscal deficits, which in turn push up rates of inflation­which, as everyone knows, hits the poor the hardest of all. That is why taxmen call inflation the most regressive form of taxation. The entire subsidy system is built on the thesis that people cannot help themselves, therefore governments must do so. That people cannot afford to pay for variety of goods and services, and therefore the government must step in. This thesis has been applied not just in the poor countries but in the rich ones as well; hence the birth of the welfare state in the west, and an almost Utopian social security system; free medical care, food aid, old age security, et.al. But with the passage of time, most of the wealthy nations have discovered that their economies cannot sustain this social safety net, which in fact reduces the desire among people to pay their own way, and takes away some of the incentive to work, in short, the bill was unaffordable, and their societies were simply not willing to pay. To the regret of many, but because of the laws of economies are harsh, most Western societies have been busy pruning the welfare bill. In India, the lessons of this experience over several decades, and in many countries­do not seem to have been learnt. Or they are simply ignored in the pursuit of immediate votes. People who are promised cheap food or clothing do not in most cases look beyond the gift horses­to the question of who picks up the tab. The uproar over higher petrol, diesel and cooking gas prices ignored this basic question; if the user of cooking gas does not want to pay for its cost, who should pay? Diesel in the country is subsidised, and if the user of cooking gas does not want to pay for its full cost, who does he or she think should pay the balance of the cost? It is a simple question, nevertheless if remains unasked. The Deva Gowda government has shown some courage in biting the bullet when it comes to the price of petroleum products. But it has been bitten by much bigger subsidy bug. It wants to offer food at half its cost to everyone below the poverty line, supposedly estimated at some 380 million people. What will be the cost? And of course, who will pick up the tab? The Andhra Pradesh Government has been bankrupted by selling rice as 2 per kg. Should the Central Government be bankrupted too, before facing up to the question of what is affordable and what is not? Already, India is perennially short of power because the subsidy on electricity has bankrupted most electricity boards, and made private investment wary unless it gets all manner of state guarantees. Delhi's subsidised bus fares have bankrupted the Delhi Transport Corporation, whose buses have slowly disappeared from the capital's streets. It is easy to be soft and sentimental, by looking at programmes that will be popular. After all, who does not like a free lunch? But the evidence is surely mounting that the lunch isn't free at all. Somebody is paying the bill. And if you want to know who, take at the country's poor economic performance over the years. Which of the following should not be subsidised over the years ?
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