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Daily Prelims Test – 02_February 2021

With reference to the Economic Survey 2020-21, the term Bare Necessities Index is related to

Basic needs of human life

Sovereign Credit Rating

Counter cyclical Fiscal policy

Reforms In Tax Administration

Answer: (a)Basic needs of human life

Explanation:

In NEWS: Bare necessities gap between States has narrowed since 2012: Economic Survey

  • Poorer States have reduced the gap with rich States when it comes to in providing their citizens with access to the basics of daily life — housing, water, power, sanitation, cooking gas — according to a new ‘Bare Necessities Index’ (BNI) in the Economic Survey 2020-21.
  • Bare necessities are basic needs of human life to prevent ill health and under nourishment, which are consumed by all the members of the household.Hence option (a) is correct
  • It includes food, clothing, housing, water, sanitation, electricity, and clean cooking fuel.
  • About Bare Necessities Index (BNI)
  • The Index shows inequalities in access to bare necessities exist between urban and rural India.
  • The BNI builds on the idea of Thalinomics in the Economic Survey for 2019-20.
  • The BNI talks about 26 indicators over five dimensions namely water, sanitation, housing, micro-environment, along with various other facilities.
  • It has been created for all states in 2012 and 2018 using the data by NSO.
  • The specifications about the index are that it classifies areas on three levels of access which is high, medium and low to all bare necessities.
  • The other facilities include the availability of Kitchen, Kitchen with a water tap, good ventilation in house, access to bathroom, electricity use and type of fuel used for cooking.

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Consider the following Statements regardingNational e-Vidhan Application

It is an initiative of Ministry of Parliamentary Affairs.

It aims to make all legislatures in the country paperless by making proceedings of houses digital.

Which of the statement(s) given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer: (c)Both 1 and 2

Explanation:

In NEWS: Meghalaya assembly speaker visits Arunachal assembly to get information about NeVA project

Meghalaya State Assembly Speaker MetbahLygdoh yesterday visited Arunachal Pradesh Legislative Assembly Secretariat in Itanagar to get first-hand information about the National e-Vidhan project implemented in the Assembly.

Arunachal Assembly is the first in the northeast and third in the country to have successfully implemented the ambitious National e-Vidhan Application (NeVA) project.

About National e-Vidhan Application

NeVA is an initiative of Ministry of Parliamentary Affairs. It aims to make all legislatures in the country paperless by making proceedings of houses digital.Hence statement 1 is correct and Hence statement 2 is correct

It also aims to provide information about functioning of House to common citizen at click of a button.

It is a work-flow based app deployed in Cloud (Meghraj) which helps the Chair of the House to conduct the proceedings of the House smoothly and the members to carry out their duties in the House efficiently.

NeVA is a member-centric, decentralized digital application that makes information available on digital platform about day to day functioning of legislative houses. It hosts secure page for each Member of House for submitting Questions and other Notices.

It includes mobile applications (both on iOS and android platform) along with NeVA website which act as repository of data related to business of all Legislatures in the country in uniform manner.

NeVA has been made live for Rajya Sabha in respect of Monsoon Session 2018 and information in respect of Lok Sabha is being updated.

The user friendly app has made information on conduct of business in Legislatures accessible anytime, anywhere to everyone.

Source: http://www.newsonair.com/News?title=Meghalaya-assembly-speaker-visits-Arunachal-assembly-to-get–information-about-NeVA-project&id=408905

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Consider the following Statements regarding Agriculture Infrastructure Fund

It is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets

The duration of the scheme shall be from FY2020 to FY2029

Under the scheme, Rs. 10 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum

Which of the statement(s) given above is/are correct?

1 and 2 only

2 and 3 only

3 only

1,2 and 3

Answer: (a) 1 and 2 only

Explanation:

In NEWS: Budget 2021: Agriculture infrastructure fund to strengthen the mandis

Dismissed the apprehensions that farm laws would weaken the mandis, the finance minister said the APMCs mandis will be strengthened with financial support from the Agriculture Infrastructure Fund.

The Budget proposed that 1,000 APMCs will be connected to the e-National Agriculture Market (e-NAM).

The Budget saw an increase in the Agriculture Infrastructure Fund to Rs 40,000 crore and the doubling of the Micro Irrigaation Corpus to about Rs 10,000 crore while agriculture credit has been raised to Rs 16.5 lakh crore.

About Agriculture Infrastructure Fund

The Union Cabinet in July 2020 has approved a new pan India Central Sector Scheme called Agriculture Infrastructure Fund.

The scheme shall provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.Hence statement 1 is correct

The duration of the Scheme shall be from FY2020 to FY2029 (10 years).Hence statement 2 is correct

Under the scheme, Rs. One Lakh Crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public Private Partnership Project.Hence statement 3 is incorrect

It will provide credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 Crore.

Source: https://www.newindianexpress.com/nation/2021/feb/02/budget-2021-agricultureinfrastructure-fund-to-strengthen-the-mandis-2258347.html

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  • 4.What is the aim of O-SMART Project?
  • It target the drought-prone areas by improving water conservation measures to make them more water sustainable
  • It is a campaign mode genetic upgradation program covering all breeds of bovines to enhance the milk production
  • It aims to make police stations more approachable for the public, especially women.
  • It will address ocean development activities such as services, technology, resources, observations and science.
  • Answer: (d) It will address ocean development activities such as services, technology, resources, observations and science.
  • Explanation:
  • In NEWS: Union Budget 2021-22: Finance Minister launches Rs 4,000 crore deep ocean mission
  • In her budget speech on February 1, 2021 finance minister Nirmala Sitharaman announced, “Our oceans are a storehouse of living and non-living resources. To better understand this realm, we will launch a deep ocean mission with a budget outlay of more than Rs 4,000 crores, over five years. This mission will cover deep ocean survey exploration and projects for the conservation of deep sea bio-diversity.”
  • Ocean-faringendeavour under the MoES is the Ocean Services, Modelling, Application, Resources and Technology (O-SMART) project. For this the budget estimate was Rs 567 crore in 2020-21 which was later revised to Rs 238.5 crore. This Budget, the project was allotted Rs 436 crore.
  • About Ocean Services, Modelling, Application, Resources and Technology (O-SMART) project
  • The scheme will cover a total of 16 sub-projects, which will address ocean development activities such as services, technology, resources, observations and science. Hence option (d) is correct
  • The services provided under the O-SMART scheme will provide a number of economic benefits to the user communities in the coastal areas including the coastal states and ocean sectors such as shipping, fisheries and offshore industry.
  • The project will be implemented by Ministry of Earth Sciences.
  • The ocean advisory services and technologies being rendered and developed under the scheme will play a pivotal role in the development activities over many sectors, working in the marine environment including the coastal states of India, contributing significantly to the GDP.
  • Under the (O-SMART) scheme, the Ministry envisages the continuation of coastal research and marine biodiversity activities, which are important in the context of achieving United Nations Sustainable Development Goal-14 to conserve and sustainably use the oceans, seas and marine resources for sustainable development.
  • This scheme (O-SMART) also provide necessary scientific and technological background required for implementation of various aspects of Blue Economy.
  • The State of Art Early Warning Systems established under the O-SMART Scheme will help in effectively dealing with ocean disasters like Tsunami, storm surges.
  • Source: https://www.downtoearth.org.in/news/environment/union-budget-2021-22-finance-minister-launches-rs-4-000-crore-deep-ocean-mission-75308

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  • 5.Consider the following Statements regarding Gas hydrates
  • They are ice-like crystalline minerals that form when low molecular weight gas combines with water and freezes into a solid under low temperature and moderate pressure conditions.
  • Most gas hydrates are formed from carbon-di-oxide
  • Which of the statement(s) given above is/are correct?
  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2
  • Answer: (a) 1 only
  • Explanation:
  • In NEWS: Union Budget 2021-22: Finance Minister launches Rs 4,000 crore deep ocean mission
  • The project will cover deep ocean exploration and conservation of biodiversity
  • The Indian government wants to understand the oceans better, both as a resource and for the conservation of marine bio diversity — two research areas that could become conflicting in nature.
  • AnMoES press release from September 21, 2020 lists 16 objectives of the O-SMART scheme which includes collection of information of marine living resources, monitoring of pollution in the Indian Ocean and develop underwater vehicles.                      
  • This was to investigate the depths of the ocean for gas hydrates.
  • About gas hydrates.
  • They are formed whena gas such as methane gets trapped in well-defined cages of water molecules forming crystalline solids. It is a solid ice-like form of water that contains gas molecules in its molecular cavities.Hence statement 1 is correct
  • Natural gas hydrates occur oncontinental margins and shelves worldwide from Polar Regions to the tropics.
  • Most gas hydrates are formed from methane. Hence statement 2 is incorrect
  • Gas hydrate reservoirs are generally associated with biologically rich cold seep ecosystems at the seafloor. Cold seeps are locations where hydrocarbon-rich fluid seeps up from below the seafloor, often as methane or hydrogen sulfide.
  • It is estimated that total amount of carbonin the form of methane hydrates, far exceeds the carbon content in all the fossil fuel reserves put together and hence these are supposed to be the future potential energy resource.
  • Gas hydrates could also be dangerous as their decomposition can release large amounts of methane, which is a greenhouse gas that could impact Earth’s climate. Sudden release of pressurised methane gas may cause submarine landslides, which in turn can trigger tsunamis
  • Gas hydrates in the ocean can be associated with unusual and possibly unique biological communities that use hydrocarbons or hydrogen sulphide for carbon and energy via a process known as chemosynthesis.
  • Krishna-Godhavari basin has evidence of occurrence of huge thickness of gas hydrates demonstrated by shale fracturing mechanism and world’s deep seated occurrence of gas hydrates have been sampled in Andaman basin.
  • Source: https://www.downtoearth.org.in/news/environment/union-budget-2021-22-finance-minister-launches-rs-4-000-crore-deep-ocean-mission-75308

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  • 6.Consider the following Statements
  • Eachyear2nd February is celebrated as World Wetlands Day to raise global awareness about the vital role of wetlands for people and our planet
  • Wetlands are land areas that are saturated or flooded with water either permanently or seasonally
  • There are a total of 42 Ramsar Sites in India.
  • Which of the statement(s) given above is/are correct?
  • 1 and 2 only
  • 2 and 3 only
  • 3 only
  • 1,2 and 3
  • Answer: (d) 1,2 and 3
  • Explanation:
  • In NEWS: World Wetlands Day: The origin, purpose and theme this year
  • February each year is World Wetlands Day to raise global awareness about the vital role of wetlands for people and our planetHence statement 1 is correct
  • This day also marks the date of the adoption of the Convention on Wetlands on 2 February 1971, in the Iranian city of Ramsar on the shores of the Caspian Sea.
  • It is one of the oldest intergovernmental accord signed by members countries to preserve the ecological character of their wetlands of international importance.
  • According to Union environment ministry, the theme this year is “Wetland and Water”. The ministry said that with the theme, the intention is to bring the focus to the availability of water and its usage.
  • It said that only 2.5 per cent of water on earth is fresh and less than 1 per cent is usable
  • Wetlands
  • Wetlands are land areas that are saturated or flooded with water either permanently or seasonall Inland wetlands include marshes, ponds, lakes, fens, rivers, floodplains, and swamps. Hence statement 2 is correct
  • Coastal wetlands include saltwater marshes, estuaries, mangroves, lagoons and even coral reefs. Fishponds, rice paddies, and saltpans are human-made wetlands.
  • They retain large volumes of water and their slow release makes them important for combating extreme weather conditions like floods and droughts.
  • Termed ‘kidneys of landscape’, wetlands contribute to water purification, water regulation, biodiversity, aesthetics and recreation, according to the United Nations.
  • India has maximum wetlands in South Asia – 7.7 lakh – covering the country’s 4.6 per cent geographical area, according to a report of NGO Wetland International.
  • The number of wetlands in India is only next to Japan and China in Asia.
  • According to environment ministry, 35 per cent of wetlands have disappeared since the 1970s and 87 per cent have been lost since the 1700s.
  • Causes of wetland loss are drainage and infilling for agriculture and construction, pollution, overexploitation of resources (like overfishing), invasive species and climate change.
  • There are a total of 42 Ramsar Sites in India.Hence statement 3 is correct
  • Source: https://www.hindustantimes.com/india-news/world-wetlands-day-the-origin-purpose-and-theme-this-year-101612239233865.html

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  • 7.Which of the following is the reason for the widespread light to moderate rain or snow with isolated thunderstorm, lightning and hail are very likely over Western Himalayan region?
  • Southward shift of the Monsoon trough
  • Fluctuation in pressure over equatorial Indian and pacific oceans.
  • Sea surface temperature is maximum at the equator.
  • Weather associated with Western Disturbances
  • Answer: (d) Weather associated with Western Disturbances
  • Explanation:
  • In NEWS: Widespread rain, thunderstorms likely over NW, central and east India from Feb 3-5, warns IMD
  • A Western Disturbance is likely to bring widespread rains to northwest India, central and parts of east India this week.
  • The confluence of southwester lies in association with the Western Disturbance and lower level southeaster lies is likely over the plains of northwest and adjoining areas of central India
  • An induced cyclonic circulation is lying over central Pakistan & adjoining West Rajasthan. These systems are likely to affect weather over northwest India and the Western Himalayan region from tonight.
  • The confluence of southwesterlies in association with the Western Disturbance and lower level southeasterlies is very likely over the plains of northwest and adjoining areas of central India from February 3 to 5, IMD
  • Under the influence of these systems, scattered to fairly widespread light to moderate rain/snow with isolated thunderstorm, lightning and hail is very likely over Western Himalayan region from February 2 night to February 5. Heavy rainfall/snowfall is likely over Jammu and Kashmir on February 3 and 4 and over Himachal Pradesh on February 4.Hence option (d) is correct
  • Western Disturbances
  • A western disturbance is an extratropical storm originating in the Mediterranean region that brings sudden winter rain to the northwestern parts of the Indian subcontinent.
  • It is a non-monsoonal precipitation pattern driven by the westerlies.
  • The moisture in these storms usually originates over the Mediterranean Sea, the Caspian Sea and the Black Sea.
  • In the case of the Indian subcontinent, moisture is sometimes shed as rain when the storm system encounters the Himalayas.
  • Western disturbances are more frequent and strong in the winter season.
  • Extra tropical storms are global phenomena with moisture usually carried in the upper atmosphere, unlike their tropical counterparts where the moisture is carried in the lower atmosphere.
  • Source: https://www.hindustantimes.com/india-news/widespread-rain-thunderstorms-likely-over-nw-central-and-east-india-from-feb-3-5-warns-imd-101612233992002.html

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  • 8.Consider the following Statements regarding Fifteenth Finance Commission
  • It has recommendation to maintain the States’ share inthe divisible pool of taxes to 41%
  • It has recommendation creating a separate non­lapsable fund for modernisation of defence and internal security
  • Which of the statement(s) given above is/are correct?
  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2
  • Answer: (c) Both 1 and 2
  • Explanation:
  • In NEWS: Govt. agrees to maintain States’ share in the divisible pool of taxes
  • The government has accepted the Fifteenth Finance Commission’s recommendation to maintain the States’ share in the divisible pool of taxes to 41% for the five-year period starting 2021-22, and given an ‘in-principle’ nod to the panel’s suggestion to set up a separate non-lapsable fund for defence and internal security modernisation.Hence statement 2 is correct
  • The Fourteenth Finance Commission had raised States’ share to 42% of divisible revenues, but the Fifteenth Finance panel had reduced the share to 41% in its interim report for 2020-21, citing the conversion of Jammu, Kashmir and Ladakh into Union Territories.Hence statement 1 is correct
  • In accordance with the views of the 15th Finance Commission, we are allowing a normal ceiling of net borrowing for the States at 4% of Gross State Domestic Product (GSDP) for the year 2021-2022. A portion of this ceiling will be earmarked to be spent on incremental capital expenditure
  • The Commission, headed by N.K. Singh, has recommended creating a separate non-lapsable fund for modernisation of defence and internal security, a term of reference the Centre had sought its views on. To bridge the gap between defence budget allocations and the projected budgetary requirements, the panel has mooted a fund of ₹38 lakh crore for the coming five-year period.
  • The Commission has sought to assuage the fears of southern States about losing some share in tax transfers due to the reliance on the 2011 Census data instead of the 1971 census, which could penalise States that did better on managing demographics. It has done so by giving a 12.5% weightage for demographic performance in its tax-transfer calculations
  • The revenue deficit grants proposed for Andhra Pradesh and Kerala are far higher than the previous Commission’s period, while Tamil Nadu has also been earmarked for marginally higher grant on this front
  • About Fifteenth Finance Commission
  • The Fifteenth Finance Commission (XV FC) was constituted on November 27, 2017.
  • It was constituted against the backdrop of the abolition of the Planning Commission and the distinction between Plan and non-Plan expenditure, and introduction of the Goods and Services Tax (GST).
  • It is headed by N K Singh.
  • The recommendations would be applicable for the period from 2020-2025.
  • Article 280of the Constitution of India provides for a Finance Commission as a quasi-judicial body.
  • Source: https://www.thehindu.com/business/Economy/govt-agrees-to-maintain-states-share-in-the-divisible-pool-of taxes/article33721195.ece#:~:text=The%20government%20has%20accepted%20the,for%20defence%20and%20internal%20security

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  • 9.Which of the following statements are correct regarding Condition for formation of tropical cyclones?
  • Large sea surface with temperature higher than 27° C.
  • Presence of the Coriolis force.
  • Small variations in the vertical wind speed.
  • A pre-existing weak low- pressure area or low-level-cyclonic circulation.
  • Upper divergence above the sea level system.
  • Select the correct options from the given below codes
  • 1, 3 and 5 only
  • 2, 3, 4 and 5 only
  • 1, 4 and 5 only
  • All the given statements are correct
  • Answer: (d)All the given statements are correct
  • Explanation:
  • In NEWS:Tropical cyclones move closer to land except for Atlantic hurricanes
  • Tropical cyclones across the globe, except Atlantic hurricanes, are moving closer to land in recent decades, a new study found.
  • Tropical cyclones generally have been moving westward by about 30 kilometres per decade since 1982, putting them closer to land and making them more dangerous
  • Storms generally move east to west because of trade winds in the tropics, so a greater westward shift usually puts them closer to the land.
  • Storms that form west of land, such as in the Pacific off the California and Mexican coasts, are usually moving away from land.
  • Changes in atmospheric currents that steer storms tend to be pushing cyclones farther west.
  • Possible reason why there is no westward shift in Atlantic hurricane basin because the Atlantic hurricane zone is more closely surrounded by continents.
  • About Tropical Cyclones
  • Tropical cyclones are violent storms that originate over oceans in tropical areas and move over to the coastal areas bringing about large scale destruction caused by violent winds, very heavy rainfall and storm surges.
  • Tropical Cyclones are one of the most devastating natural calamities in the world.
  • Tropical cyclones originate and intensify over warm tropical oceans.

The conditions favourable for the formation and intensification of tropical storms are:

  • Large sea surface with temperature higher than 27° C.
  • Presence of the Coriolis force.
  • Small variations in the vertical wind speed.
  • A pre-existing weak low- pressure area or low-level-cyclonic circulation.
  • Upper divergence above the sea level system.Hence option (d) is correct

Source: https://www.thehindu.com/sci-tech/science/tropical-cyclones-move-closer-to-land-except-for-atlantic-hurricanes/article33705056.ece


  1. 10.A decrease in tax to GDP ratio of a country indicates which of the following?
  2. Slowing economic growth rate
  3. Less equitable distribution of national income

Select the correct answer using the codes given below.

  1. 1 only
  2. 2 only
  3. Both 1and 2
  4. Neither 1 nor 2

Answer: (d)Neither 1 nor 2

Explanation:

  • For the tax/GDP ratio to decrease either the tax collection should decrease or GDP should increase. Now considering the first statement if the GDP collection might or might not necessarily increase with a slow growth rate. Hence this option is ruled out.
  • Increase in indirect tax collection may lead to less equality in income distribution but the same cannot be said for increase in direct tax collection. Hence, even this option can be ruled out.