Important GK Questions Based On Union Budget 2020 | Set- 6

Correct Answer – C. Rs 22,000 crore

Explanation: An allocation of Rs 22,000 crore has been made for the power and renewable energy sector in the Union Budget 2020-2021.

Correct Answer – D. Rs 4,400 crore

Explanation: Expressing concern over air pollution in large cities, Union Finance Minister Nirmala Sitharaman on Saturday announced an allocation of Rs 4,400 crore to encourage states formulating plans to ensure clean air in cities which have a population of above one million. Parameters for the incentives would be notified by the Ministry of Environment, Forests and Climate change. Allocation for this purpose is Rs 4,400 crore for 2020-21

Correct Answer – B. Rs 3.5 lakh crore

Explanation: Finance Minister Nirmala Sitharaman has said that government has infused Rs 3.5 lakh crore capital into public sector banks (PSBs) to help them maintain regulatory capital requirements and finance growth plans. In the last Budget, the government had infused Rs 70,000 crore.

Correct Answer – A. 15%

Explanation: The government plans to increase investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 per cent to 15 per cent, also proposed debt-exchange traded funds comprising mainly government securities, while stating that Rs 22,000 crore has already provided as support to infrastructure project pipeline.

Correct Answer – C. IPO

Explanation: The government is finally selling a part of its prized family silver Life Insurance Corporation through an initial public offer. While the details are not out, the LIC issue can be in the Rs 10,000 crore-15,0000 crore and upward bracket, akin to that of Aramco by Saudi Arabia or ICBC of China, given the spike in divestment target. The government has doubled the divestment target of Rs 2.1 lakh crore for FY21 over this fiscal, a major chunk is likely to come from the LIC IPO.

Correct Answer – B. 3.8%

Explanation: The Finance Minister identified the fiscal deficit for FY 2019-20 at 3.8%(RE)  and pegged it at 3.5% (BE) for FY 2020-21 which is consistent with government’s abiding commitment to macroeconomic stability as part of Medium Term Fiscal Policy cum Strategy Statement 2020-21.

Correct Answer – C. Rs 30.42 lakh crore

Explanation: Finance minister Nirmala Sitharaman estimated the fiscal deficit at 3.5% in FY21 (2020-21) and at 3.8% for FY20 (2019-20). Estimated government receipts for FY21 at Rs 22.46 lakh crore and pegged the expenditure at Rs 30.42 lakh crore. FM Sitharaman also said that the central government’s debt had reduced to 48.7% of GDP in 2019 from 52.2%.

Correct Answer – B. Rs 5.36 lakh crore

Explanation: The government will borrow Rs 5.36 lakh crore from the market in 2020-21, marginally higher than the Rs 4.99 lakh crore estimated for the current financial year ending March 2020. According to the Revised Estimate, the net borrowing for the current financial year was raised to Rs 4.99 lakh crore as against the Budget Estimate of Rs 4.48 lakh crore. The gross borrowing would be Rs 7.8 lakh crore for the next financial year as compared to Rs 7.1 lakh crore estimated for the current financial year.

Correct Answer – D. All of the Above

Correct Answer – B. 12,300 crore

Explanation: In the Union Budget for the financial year 2020-21, the Finance Minister announced that the total allocation proposed for Swachh Bharat Mission is Rs 12,300 crore. Swachh Bharat Abhiyan or Clean India Mission is a nation-wide campaign introduced by Prime Minister Narendra Modi that aims to clean the streets, roads and infrastructure of cities towns, urban and rural cities and area in India.

The Indian government, the budget allocated for FY21 is less than the budget allocation of Rs 12,644 crore in FY20.  In fact, the allocation for the mission in last year’s budget was 31 per cent less from Rs 19,427 allocated by the government in the FY 2018-19.