Passage – 5
The NDA government’s Black Money Act may have so far managed to scoop up just the surface of the potentially retrievable unaccounted income. But the rhythm to unearth more illegal income seems to have been set. The CBI searches in State-run Bank of Baroda branches for `6,100-crore suspected black money transfer is perhaps the first major and concrete action against the ‘black sheep’ in years. Hopefully, the investigating agency and the special investigation team on black money will
take this forward. The one-time compliance window for the declaration of foreign assets and income under the Black Money Act, which closed on September 30, saw just 638 declarations aggregating to `3,770 crore. Union Finance Minister Arun Jaitley was quick to warn those who did not declare unaccounted income to face the “consequences.” The CBI raid comes just a few days after Jaitley’s warning and if his categorical statement that bulk of the black money is within India is anything to go by, more such raids can be expected.
The Act is one of the crucial components of economic reforms
announced last year and there’s an urgent need to step up efforts to retrieve stashed income, both within the country and abroad. With investor appetite losing sheen, economic growth slowing down and with India moving nowhere as far as its ease of doing business rank is concerned, the government is in a tight spot to act and now. Stringent norms on undisclosed income imply the country is not a ‘safe haven’ and will strengthen the moral fiber of our society. Importantly, income recovered from such sources is crucial for the government to steer its social programmes and fund public expenditure at a time when the country’s direct and indirect tax collections are
below target. The Act can also be used to clean up the mess broiling at our public sector banks that are reeling under severe stressed assets and low recoveries.
Traditionally, stock markets too are often used to circulate black money. Be it via Participatory Notes, which allow investors to invest without having to register themselves, or channeling funds through tax havens like Mauritius or Singapore. While continuing to crack the whip on banks to trace the illicit money flow, the government should also focus on the markets.
21. According to the passage the Black Money Act is for:
- a) Financing the black money
- b) Retrieving the black money
c) Saving the black money
d) Covering the black money Answer: b)
Explanation: The first paragraph clearly indicates that Black Money Act is for retrieving the unaccounted illegal income.
22. Which compliance rule helped in unearthing the black money?
- a) Declaration of expenditure
- b) Declaration of income
c) Declaration of assets
d) Declaration of foreign assets and income
Answer: d)
Explanation: The first paragraph clearly states that “The one-time compliance window for the declaration of foreign assets and income under the Black Money Act, which closed on September 30, saw just 638 declarations aggregating to 3,770 crore”.
23. According to the passage, the Black Money Act is an important part of:
- a) Infrastructure Development
- b) Technological Development
c) Inflation Control
d) Economic Reforms Answer: d)
Explanation: The second paragraph clearly states that the Black Money Act is one of the crucial components of economic reforms announced last year.
24. According to the passage, which one of the following is the consequence of increasing black money in India?
a) Higher economic growth b) Slower economic growth c) Increase in investments
d) International players opening new business in India
Answer: b)
Explanation: The second paragraph clearly states that due to increase in black income investor appetite losing sheen, economic growth slowing down and India moving nowhere as far as its ease of doing business rank is concerned.
25. According to the passage, the fund collected through Black Money Act can be used for?
- a) Fund Public Expenditure
- b) Fund Private Expenditure
c) Fund Public Income
d) Fund Private Income
Answer: a)
Explanation: The second paragraph clearly states that income recovered from such sources is crucial for the government to steer its social programmes and fund public expenditure at a time when the country’s direct and indirect tax collections are below target.
Passage – 6
India’s gross domestic product (GDP) grew by 7.3 per cent during 2014-15, according to the official data. The figure fell short of the 7.4 per cent predicted by the Central Statistical Organisation (CSO). This is certainly a creditable
achievement when the growth rate in many developed countries is not even half of it. However, what is most distressing is that the growth rate in the agriculture sector was a negligible 0.2 per cent during the same period. Had it performed better, the overall growth rate would have been far more creditable. As a majority of the people still depends on agriculture for their livelihood, the niggardly growth rate is nothing but a national disaster the consequences of which are difficult to be visualised.
That the agricultural sector is in distress and some of the farmers are even forced to commit suicide is no news. The fact is that little has so far been
done to strengthen agriculture. It is also well known that the agricultural output has close relations with the climatic conditions. The recent unseasonal rains in many parts of India, followed by searing heat wave conditions, have caused extensive damage to the crops. In the weeks to come, demands for waiving of agricultural loans and increasing the procurement prices of food grains are bound to be taken up by political leaders. Eventually, the government would be forced to concede some of their demands.
Needless to say, this will not help the agricultural sector to regain health. Instead, it will only perpetuate the
dependency of the farmer on government subsidy, a problem that needs to be addressed in right earnest. What is needed is a shift in emphasis—from subsidy to investment. It is a fact that agriculture has not seen any investment worth the name during the last few decades. In fact, after the success of the Green Revolution, this sector has not seen much investment. Cold storages that can protect perishable commodities like potato and onion and warehouses where grains can be kept protected from rains and moisture are just two areas where heavy investment is required. The insurance industry can be encouraged to come up with crop insurance policies which are
imaginatively conceived to meet the needs of the farmer. If this kind of structural change is not attempted, Indian agriculture will remain moribund and the farmers will continue to wallow in distress.
26. According to the passage, the growth in the India’s GDP is:
- a) More than the Estimated Rate.
- b) Exactly same as the Estimated
Rate.
c) Less than the Estimated Rate.
d) First Increased and then decreased as per the estimates.
Answer: c)
Explanation: The passage clearly mentions that the growth in the India’s GDP fell short of the 7.4 per cent predicted by the Central Statistical Organisation (CSO).
27. The growth rate in agricultures sector compared to other sector:
a) Contributes largely to the India’s GDP.
b) Contributes very less to the India’s GDP.
c) Helps in controlling inflation of the country.
d) Indicates a boom in the agriculture sector.
Answer: b)
Explanation: It has been clearly mentioned in the passage that the growth rate in the agriculture sector is quite distressing and negligible (0.2 per cent).
28. Agricultural output is related to:
- a) Financial Credit given to farmers
- b) Infrastructural Development
c) Government’s support given to farmers
d) Climatic Conditions Answer: d)
Explanation: The second paragraph clearly states that the agricultural output has close relations with the climatic conditions.
29. According to the passage, what are the main reasons for the damage of the crops in India?
1. UnseasonalRains
2. LackofFinancialSupport 3. LackofIrrigationFacility 4. HotClimate
- a) Only A and B
- b) Only B and C
c) OnlyAandD
d) Only C and D
Answer: c)
Explanation: It has been clearly mentioned in the second paragraph that the unseasonal rains in many parts of India, followed by searing heat wave conditions, have caused extensive damage to the crops.
30. Due to distress in agriculture sector, the government can face which of the following demands from the farmers?
- a) Waiving of agricultural loans.
- b) Increasing the procurement prices
of food grains
c) Increasing the agricultural loans.
d) Waiving of agricultural loans and increasing the procurement prices of food grains.
Answer: d)
Explanation: It has been clearly mentioned in the second paragraph that demands for waiving of agricultural loans and increasing the procurement prices of food grains are bound to come from farmers due to damage in the crops.