Monetary & Fiscal Policy MCQ — 584 Practice Questions with Answers

Explanation

Statements 1, 2, and 4 are correct. (1) ₹7.85 lakh crore is the highest-ever defence allocation in absolute terms — a 15% rise over FY 2025-26. (2) Approximately 75% of the Capital Acquisition budget is reserved for domestic industry procurement under the Aatmanirbhar Bharat in Defence policy. (4) India is evaluating a ₹3.25 lakh crore deal for 114 Rafale fighter jets from France — India's largest-ever proposed defence procurement. Statement 3 is INCORRECT: According to IISS, the allocation makes India the FOURTH-largest military spender globally, not third. Russia (third) still spends more than India on defence. The order is: US > China > Russia > India.

Explanation

GST has four main slab rates: 5%, 12%, 18%, and 28%. The 28% slab is the highest and applies to luxury and sin goods like luxury cars, tobacco products, and aerated drinks. A compensation cess may apply on top of 28%.

Explanation

The SHG-Bank Linkage Programme was started by NABARD in 1992. It links Self Help Groups (predominantly women) with banks for savings and credit. It is the world's largest microfinance programme, covering over 11 crore households.

Explanation

Green taxonomy provides a standardized framework for classifying environmentally sustainable activities for investment. RBI constituted a Sustainable Finance Group. India is developing its own taxonomy aligned with SDGs and climate commitments.

Explanation

Non-Tax Revenue of the Central Government includes dividends and profits from PSUs and RBI, interest receipts, fees, fines, and receipts from general, social, and economic services. It is part of Revenue Receipts.