Most Important MCQs from Economic Survey and Budget 2021
These Multiple Choice Questions (MCQs) derived from PIB,
Ministry of Finance, News Papers, Union Budget App, and other aitheauth sources. MCQs on Union Budget 2021-22 are conceptual as well as factual.
These questions-answer will be useful for UPSC, UPPSC, and other Civil Service Prelims Examinations…
( Best ) Union Budget 2021-22 Key Highlights
Q.1. The Budget 2021 increases the FDI limit to 74% in the Insurance Sector. What was the previous FDI limit?
- A) 34%
- B) 46%
- C) 49%
- D) 55%
Answer : C
The permissible limit of the Foreign Direct Investment (FDI) has been raised from 49% to 74% in the Insurance sector
FDI IN NEWS
Cabinet approves 100% FDI & 20-Year License in DTH broadcasting services sector
China surpasses United States as largest recipient of FDI; according to UNCTAD
Overall, the global FDI had fell by 42% in 2020, attracting an inflow of an estimated $859 billion
India becomes second-largest source of FDI in United Kingdom
United States remained the top source of FDI for UK in 2019-20
Telecom department approves FDI limit in Bharti Airtel to 100%
Q.2. How much funds are allocated for the health & wellbeing sector in the Union Budget 2021-22?
- A) Rs 3,23,846 crore
- B) Rs 2,23,846 crore
- C) Rs 4,23,846 crore
- D) Rs 1,23,846 crore
Answer : B
Union Budget 2021-22 allocates Rs 2,23,846 crore for the Health and Wellbeing sector for fiscal year 2021-22 to strengthen three key areas: Preventive, Curative, and Wellbeing. Apart from this, the Budget allocation includes Rs 35,000 crore for COVID-19 vaccines.
Q.3. The Union Budget 2021-22 increases the Agricultural Credit Target to what amount for FY22?
- A) Rs. 16.5 lakh crore
- B) Rs. 15.5 lakh crore
- C) Rs. 18.5 lakh crore
- D) Rs. 20.5 lakh crore
Answer : A
The Budget enhances the Agricultural Credit Target to Rs 16.5 lakh crore for 2021-22 with the main focus on animal husbandry, dairy and fisheries sectors.
Q.4. Which company’s IPO will be launched in 2021-22 as a part of Government’s disinvestment strategy?
- A) Life Insurance Corporation
- B) HDFC life Insurance
- C) SBI General Insurance
- D) Bharati AXA General Insurance
Answer : A
The Budget 2021-22 estimates show Rs 1,75,000 crore revenue target from disinvestment in 2020-21. As a part of Strategic disinvestment, the IPO of the Life Insurance Corporation (LIC) will be launched in 2021-22.
Initial Public Offer :-
IPO is the selling of securities to the public in the primary market (a type of capital market)
The IPO is expected to be the biggest in the Indian capital markets given the size and scale of LIC
The LIC’s total assets had touched an all-time high of Rs. 31.11 lakh crore in 2018-19.
The government is seeking some exemption related to the LIC IPO from the Securities and Exchange Board of India (SEBI)
In the Budget 2020-21, the government had announced plans for IPO of LIC and a proposal to sell the government’s equity in the stressed IDBI Bank to private
LIC is also a majority shareholder in IDBI Bank (51%)
Q.5. How much capital expenditure has been allocated for BE 2021-22 in Budget 2021?
- A) Rs. 3.89 lakh crore
- B) Rs. 5.54 lakh crore
- C) Rs. 4.60 lakh crore
- D) Rs. 6.34 lakh crore
Answer : B
The Budget 2021 allocates a financial outlay of Rs. 5.54 lakh crore for capital expenditure in BE 2021-22, a sharp increase in Capital Budget of 34.5% over Rs. 4.12 lakh crore allocated in Budget 2020-21
Q.6. The fiscal deficit is estimated to be how much percent of the GDP in 2021-22 as per Union Budget 2021?
- A) 6.8%
- B) 9.5%
- C) 9.2%
- D) 8.6%
Answer : A
The fiscal deficit is estimated to be 6.8% of GDP in BE 2021-22. The Budget 2021 predicts fiscal deficit at 9.5% in RE 2020-21
Q.7. What is the Budget 2021 allocation for the Indian Railways?
- A) Rs. 4,00,000 crore
- B) Rs. 3,20,000 crore
- C) Rs. 1,10,055 crore
- D) Rs. 2,11,000 crore
Answer : C
The Budget 2021 allocates Rs. 1,10,055 crore for the Indian Railways. Of this allocated amount, Rs 1,07,100 crore is for the capital expenditure. The Budget lays down the National Rail Plan for India for the creation of future ready Railways by 2030.
Q.8. Senior Citizens of what age have been exempted from filing the Income Tax Return?
- A) 65 years or above
- B) 75 years or above
- C) 70 years or above
- D) 80 years or above
Answer : B
The Finance Minister in the Budget 2021 has exempted the senior citizens of 75 years or above from receiving the pension income, from filing the income tax return. The Union Minister also informed that the paying bank will have to deduct the necessary tax from their income
Q.9. The government has introduced how much customs duty on cotton?
- A) 15%
- B) 10%
- C) 25%
- D) 29%
Answer : B
In order to benefit the farmers of India, the central government has decided to raise the customs duty on cotton from 0% to 10%
World Cotton Day : 7 October
India is the largest cotton producing country in the world
Maharashtra is the largest producer of cotton in India
Q.10. The customs duty on the imported solar inverters has been increased from 5 percent to how much?
- A) 15%
- B) 20%
- C) 25%
- D) 30%
Answer : B
The government decided to increase the customs duty on solar inverters from 5% to 20% with the purpose of increasing domestic manufacturing of solar power. The duty on solar lanterns has also been increased from 5% to 15%.
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