Subsidies are Minor Part of Budgetary Spending: Report Reveals

सही उत्तर: B

Statement 1 is correct as per the news report, which states subsidies are dwarfed by interest payments and other major heads. Interest payments are a major non-plan revenue expenditure. Statement 2 is correct; Article 149 of the Constitution outlines the duties and powers of the CAG, which include auditing all receipts and expenditure of the Union and State governments. Statement 3 is incorrect. While fiscal consolidation often targets revenue expenditure, it's not 'primarily' focused on reducing it over capital expenditure. In fact, there's a strong argument for protecting and even increasing productive capital expenditure for long-term growth, even during consolidation. The focus is on rationalizing unproductive revenue expenditure and improving tax buoyancy.

सही उत्तर: D

Statement A is correct. Revenue deficit occurs when revenue expenditure exceeds revenue receipts, implying the government is borrowing to meet its current consumption needs. Statement B is correct. Primary deficit shows the borrowing requirement excluding interest payments on past debts. Statement C is correct. The FRBM Act, 2003, was enacted to ensure inter-generational equity in fiscal management and long-term macroeconomic stability by achieving fiscal targets. Statement D is NOT correct. Capital expenditure, by definition, is for creating assets (e.g., infrastructure, machinery). While it involves spending, it does not directly or 'always' lead to a higher revenue deficit. In fact, productive capital expenditure can boost economic growth and future revenue, potentially improving fiscal health in the long run. Revenue deficit relates to revenue expenditure, not capital expenditure directly.

सही उत्तर: C

Statement 1 is correct. The CAG is an independent constitutional authority, and their removal process is indeed similar to that of a Supreme Court Judge, ensuring independence. Statement 2 is correct. Article 151 mandates that the CAG's reports relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament. Statement 3 is incorrect. The CAG's role extends to auditing government companies and corporations. While the primary audit of local bodies is often done by state-level audit departments, the CAG has the power to conduct supplementary audits or technical guidance to state audit departments for local bodies, especially those receiving central grants. Therefore, the blanket statement that they 'do not audit' local self-government bodies is incorrect in its entirety, as their oversight can extend to them indirectly or through specific provisions.