Expected GK Questions Based on Budget 2020-21 | Set- 10

Correct Answer – C. 94.32%

Explanation: Finance Minister Nirmala Sitharaman has fittingly identified the rising demand for teachers, nurses, paramedical staff, and caregivers abroad and the pressing need for skilling programmes for professionals in these domains. The stellar success of Beti Bachao Beti Padhao is evident from the fact that gross enrolment of girls is 94.32 percent in elementary levels, 81.32 percent in secondary level, and 59.7 percent in higher secondary level as compared to boys. We are looking forward to further promotion of girl child education as the program continues to gain scale.”

Correct Answer – D. Ahmedabad

Explanation: The government on Saturday proposed to set up an international bullion exchange at IFSC in GIFT City, which will lead to better price discovery of gold, create more jobs and enhance India’s position in such market. “With the approval of the regulator, GIFT City would set up an International Bullion Exchange(s) in GIFT-IFSC as an additional option for trade by global market participants,” Finance Minister Nirmala Sitharaman said while presenting the Budget for 2020-21. The country’s only International Financial Services Centre (IFSC) is in GIFT City near Ahmedabad in Gujarat.

Correct Answer – C. New Direct Tax Dispute Settlement Scheme

Explanation: The Direct Tax Vivad Se Vishwas Bill, 2020 will be tabled in the Lok Sabha on February 5, 2020. The bill aims to resolve disputes related to direct tax payments. The vivad se vishwas scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020. The scheme aims to settle the huge number of pending direct tax cases. The Vivad Se Vishwas scheme offers to settle pending direct tax-related disputes.

• The scheme aims to resolve 483,000 direct tax-related disputes pending in various appellate forums.
• The scheme offers waivers on interest and penalty if the disputed tax amount is paid before March 31, 2020.
• If a taxpayer is not able to pay direct taxes by March 31st then, he will get further time till June 30th. However, in that case, he would have to pay 10 percent more on the tax.

• In case it is just the interest and the penalty which is being disputed, the taxpayer will have to pay 25 percent of the disputed amount till March 31, after which, it will be 30 per cent.

Correct Answer – D. Rs 100 Crore Or Loan Size Of Rs 50 Lakh

Explanation: The budget has proposed to ease the eligibility criteria for non-banking financial companies (NBFCs) for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act 2002 to asset size of Rs 100 crore, down from Rs 500 crore, and loan size of at least Rs 50 lakh against existing Rs 1 crore.

Correct Answer – B. Rs 1650 crore

Explanation: In the 2020-21 budget, funds of ₹12,000 crore have been allocated for construction of new lines, ₹2,250 crore for gauge conversion, ₹700 crore for doubling, ₹5,786.97 crore for rolling stock and ₹1,650 crore for signalling and telecom.

Correct Answer – C. Rs 3.37 lakh crore

Explanation: The Union Budget for the financial year 2020-21, presented by Finance Minister Smt Nirmala Sitharaman in Parliament on February 01, 2020, envisaged a total outlay of Rs 30,42,230 crore. Out of this, Rs 3,37,553 crore has been allocated for Defence (excluding Defence Pension). For Defence Pension, an amount of Rs 1,33,825 crore has been provided in Budget Estimates 2020-21. There is an increase of Rs 40,367.21 crore in the total Defence allocations (Rs 4,71,378 crore) including Defence Pension over the financial year 2019-20. Total defence budget accounts for 15.49 per cent of the total central government expenditure for the year 2020-21.

• The allocation of Rs 4,71,378 crore represents a growth of 9.37 per cent over Budget Estimates (Rs 4,31,010.79 crore) for the financial year 2019-20.

Out of Rs 3,37,553 crore allocated for the financial year 2020-21, Rs 2,18,998 crore is for the Revenue (Net) expenditure and Rs 1,18,555 crore is for capital expenditure for the Defence Services and the Organisations/Departments under Ministry of Defence. The amount of Rs 1,18,555 crore allocated for capital expenditure includes modernisation related expenditure.

Correct Answer – A. Rs 70000 crore

Explanation: Indian Railways will require an investment of Rs 50 lakh crore between 2018 and 2030 for upgrading its infrastructure. In line with this plan, the budgetary allocation to Indian Railways is expected to increase this year to more than Rs 70,000 crore, as opposed to Rs 65,837 crore in the previous year. The same for previous year was Rs 55,088 crore.

Correct Answer – B. 100%

Explanation: Union Finance Minister Nirmala Sitharaman, during her Budget 2020 speech, announced major tax concession on investments by sovereign wealth funds. The FM proposed to grant 100 per cent exemption on interest, dividend and capital gains income on investment made in infrastructure and other notified sectors. The timeline for availing this benefit has been fixed at March 31, 2024, with a minimum lock-in period of three years.

Correct Answer – D. 1st January 2021

Explanation:  Power plants with emissions above prescribed limits will be asked to close down, Finance Minister Nirmala Sitharaman said in budget speech. Presenting the Budget for 2020-21, Finance Minister said India’s commitment towards tackling climate change made at Paris conference kick starts from January 1, 2021. Rs 4,400 crore has been allocated for states that work towards clean air.

Correct Answer – A. Gujarat

Explanation: The government has allocated Rs 3150 crore in the Union Budget for 2020-21, for the Maritime museum which is coming up in Lothal, Gujarat. The foundation stone for the project was laid by Prime Minister Narendra Modi in March 2019 and it is expected to come upon the lines of a similar museum in Lisbon. The museum in Lisbon is managed the Portuguese Navy and the Indian Navy is looking to be part of this project which will under the Ministry of Shipping.