Question 1

With reference to the Bare Necessities Index (BNI), consider the following statements:
1. The economic survey has come with the Bare Necessities Index at rural and urban levels.
2. The BNI has been created for all States for 2018 only.
3. The BNI is based on 26 indicators.
4. The BNI consists of six dimensions.
Which of the above statements are correct?

Accepted Answer

The Bare Necessities Index (BNI), also called the Basic Needs Index, is based on the Large Annual Household Survey data. It is designed for all districts using appropriate indicators or methodology. The BNI provides information on 26 indicators across five dimensions – access to water, sanitation, housing, the surrounding environment, and other facilities. BNI indices for all states for the years 2012 and 2018 have been prepared using NSO data. The index classifies areas on the basis of three levels of access to basic necessities – high, medium, and low. Therefore, statements 1 and 3 are correct; statements 2 and 4 are incorrect. [67TH BPSC PRELIMS CANCELED EXAM, 2022]

Question 2

In the recent Union Budget, the FM has increased the Foreign Direct Investment (FDI) limit in the insurance section from the existing one to:

Accepted Answer

The Finance Ministry clarified the final rules for higher FDI in insurance by amending the Indian Insurance Companies (Foreign Investment) Rules, 2015. Parliament had passed the Insurance Amendment Bill, 2021, to increase the FDI limit in the insurance sector from 49% to 74%. Previously, FDI in the insurance sector had been increased from 26% to 49% in 2015. The insurance industry and the insurance regulator IRDAI were in favor of increasing foreign investment to promote growth and bring in global expertise. [67TH BPSC PRELIMS CANCELED EXAM, 2022]

Question 3

As per the Union Budget, 2021, the fiscal deficit is estimated to be how much percent of the GDP in 2021-22?

Accepted Answer

The revised fiscal deficit for 2021-22 was estimated at 6.8% of GDP. Fiscal deficit is the difference between the total expenditure (capital and revenue expenditure) of the government and its total income (revenue receipts and capital receipts including loans and advances). Simply put, fiscal deficit represents the shortfall in government income compared to expenditure. A higher fiscal deficit indicates the government is spending more than its resources. It is calculated as a percentage of GDP to provide a relative measure of fiscal health. [67TH BPSC PRELIMS CANCELED EXAM, 2022]

Question 4

The best index of economic development is provided by:

Accepted Answer

Economic development is a broader concept than economic growth. Economic growth refers to the increase in real income generated in an economy over time. The best index of development is the year-on-year increase in per capita national product, i.e., per capita real income, obtained by dividing the GDP of a country by its population. A higher level of per capita income indicates better economic development and improvement in living standards. [67TH BPSC PRELIMS CANCELED EXAM, 2022]

Question 5

Consider the following States:
1. Punjab
2. Uttar Pradesh
3. Andhra Pradesh
4. West Bengal
Choose the correct sequence of the above in ascending order as rice producing states in India.

Accepted Answer

The top rice producing states in India in ascending order are Andhra Pradesh, Punjab, Uttar Pradesh, and West Bengal. This ranking shows states from lower to higher rice production. For reference, the top wheat-producing states in descending order are Uttar Pradesh, Madhya Pradesh, and Punjab. [67TH BPSC PRELIMS CANCELED EXAM, 2022]

67th Prelims Cancelled 2022

In the recent Union Budget, the FM has increased the Foreign Direct Investment (FDI) limit in the insurance section from the existing one to:

As per the Union Budget, 2021, the fiscal deficit is estimated to be how much percent of the GDP in 2021-22?

The best index of economic development is provided by:

Consider the following States: 1. Punjab 2. Uttar Pradesh 3. Andhra Pradesh 4. West Bengal Choose the correct sequence of the above in ascending order as rice producing states in India.