1) Which of the following is/are true?
1) Advancement of the date of Budget presentation will remove the need for ‘Vote on Account’.
2) Separate Rail Budget started from 1924.
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
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Answer
Explanation
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ANSWER: Both 1 and 2
Explanation:
- The presentation of separate Railway budget started in the year 1924, and has continued after independence as a convention rather than under Constitutional provisions.
- The advancement of budget presentation by a month and completion of Budget related legislative business before 31st March would pave the way for early completion of Budget cycle and enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year and utilization of the full working seasons including the first quarter.
- This will also preclude the need for seeking appropriation through 'Vote on Account' and enable implementation of the legislative changes in tax; laws for new taxation measures from the beginning of the financial year.
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2) Which of the following is/are true regarding Merger of Railway budget with the General budget?
1) Railways will continue to pay dividends.
2) The appropriations for Railways will form part of a separate Appropriation Bill.
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
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Answer
Explanation
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ANSWER: Neither 1 nor 2
Explanation:
- The Railways will continue to maintain its distinct entity -as a departmentally run commercial undertaking as at present; Railways will retain their functional autonomy and delegation of financial powers etc. as per the existing guidelines;
- The existing financial arrangements will continue wherein Railways will meet all their revenue expenditure, including ordinary working expenses, pay and allowances and pensions etc. from their revenue receipts;
- The Capital at charge of the Railways estimated at Rs.2.27 lakh crore on which annual dividend is paid by the Railways will be wiped off. Consequently, there will be no dividend liability for Railways from 2017-18 and Ministry of Railways will get Gross Budgetary support. This will also save Railways from the liability of payment of approximately Rs.9,700 crore annual dividend to the Government of India;
- The presentation of a unified budget will bring the affairs of the Railways to centre stage and present a holistic picture of the financial position of the Government.
- The merger is also expected to reduce the procedural requirements and instead bring into focus, the aspects of delivery and good governance.
- Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.
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3) Which of the following is proposed to be implemented from budget 2017-18?
1) Merger of Railway budget with the General budget
2) Advancement of the date of Budget presentation
3) Merger of the Plan and the Non-Plan classification in the Budget and Accounts
a. 2, 3
b. 1
c. 1, 3
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
The Union Cabinet has approved the proposals of Ministry of Finance on certain landmark budgetary reforms relating to
(i) the merger of Railway budget with the General budget,
(ii) the advancement of the date of Budget presentation from the last day of February and
(iii) the merger of the Plan and the Non-Plan classification in the Budget and Accounts. - All these changes will be put into effect simultaneously from the Budget 2017-18.
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4) A new scheme, called VIKALP is related to -
a. Tree conservation
b. Water management
c. Tourism
d. Railway
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Answer
Explanation
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ANSWER: Railway
Explanation:
The Rail Ministry has announced a new scheme, the Alternate Train Accommodation Scheme (ATAS), also called as VIKALP.
It would allow wait-listed passengers of a train to opt for confirmed accommodation in alternate trains.
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