This is the current affairs of 2 February 2024. Here are questions and answers of daily current affairs for better preparation of competitive exams for government jobs.
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1. In the interim budget 2024-25, the central government has set a target of spending how many rupees?
a. 39.44 lakh crore
b. 42.50 lakh crore
c. 44.42 lakh crore
d. 47.66 lakh crore
Answer: d. 47.66 lakh crore
– Nirmala Sitharaman presented the budget for the sixth time.
– Since general elections are scheduled for this year, an interim budget has been presented.
What is an interim budget?
– An interim budget is presented in two situations: either the government does not have time to present a full or regular budget, or general elections are imminent.
– This year’s budget is an interim budget because the government is set to go to elections in a few months.
– In both situations, the government seeks parliamentary approval for spending for the remaining months of the financial year.
– In an interim budget, expenditure is authorized until the formation of the new government and the passage of its budget.
– It serves as a temporary provision until the new budget comes into effect.
– According to tradition, it is the new government formed after the elections that will present the full budget.
# The target for Income in the budget: 47.66 lakh crores
– Revenue Receipts: 30 lakh crores
– Capital Receipts: 17.64 lakh crores
Note: The estimated income in the previous budget for 2023-25 was set at 45.03 lakh crores. However, the revised estimate was 44.90 lakh crores.
Sources of Income:
#28%: Borrowings and Other Liabilities (loans and debts and other liabilities) [16.85 lakh crores]
#19%: Income Tax
#18%: GST
#17%: Corporation Tax
#7%: Non-Tax Revenue (miscellaneous capital receipts)
#5%: Union Excise Duty
#4%: Customs (import duties)
#1%: Non-Debt Capital Receipts (non-loan capital receipts)
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# The target for Expenditure in the budget: 47.66 lakh crores
– Revenue Expenditure: 36.54 lakh crores (including interest payment of 11.9 lakh crores)
– Capital Expenditure: 11.11 lakh crores
Note: The estimated expenditure for the previous fiscal year 2022-23 was 45.03 lakh crores. However, the revised estimated expenditure was 44.90 lakh crores.
Sources of Expenditure:
# 20%: Interest Payment (debt repayment) [11.9 lakh crores]
# 20%: Share of taxes and duties to states
# 16%: Central Sector Schemes
# 8%: Finance Commission and other transfers
# 8%: Centrally Sponsored Schemes
# 8%: Defense (military)
# 6%: Subsidies
# 4%: Pensions
# 9%: Other expenses
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2. In the interim budget 2024-25, the Finance Minister has set the target of fiscal deficit as what percent of GDP?
a. 5.1%
b. 3.3%
c. 5.9%
d. 3.8%
Answer: a. 5.1%
– The estimated fiscal deficit as a percentage of GDP is 5.1%.
– This would amount to 1.68 lakh crores in rupees.
– The estimated fiscal deficit for the previous fiscal year 2023-24 was 5.8%.
– The government covers this deficit by borrowing loans or taking debt.
Fiscal deficit means = Total Non-Debt Expenditure – Total Non-Debt Receipts
– Total Non-Debt Expenditure refers to total expenditure excluding loans.
– Total Non-Debt Receipts include Revenue Receipts and Capital Receipts excluding loans.
– The amount left after deducting Revenue Receipts, loan recovery, and loan refunds (Total Non-Debt Receipts) from the Total Expenditure is termed as Fiscal Deficit.
(In simpler terms, it’s the difference between pure income and expenditure. This means that income has decreased, but expenditure has increased, requiring the government to take loans to fulfill it.)
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3. How much amount has been allocated to the Defense Ministry in the Interim Budget 2024-25?
a. 5.2 lakh crore rupees
b. 6.8 lakh crore rupees
c. 5.9 lakh crore rupees
d. 6.2 lakh crore rupees
Answer: d. 6.2 lakh crore rupees
– This time, the Ministry of Defense has been allocated a total amount of 6.2 lakh crore rupees.
– This includes 1.41 lakh crore rupees for pensions.
– There has been an increase of 12.9% in the total defense budget compared to the previous year.
– Whereas in the previous budget (2023-24), this amount was 5.93 lakh crore rupees.
Defense Budget:
– The defense budget mainly consists of three parts: Revenue, Capital Expenditure, and Pension.
– The Revenue budget includes salaries of defense staff and other expenses such as infrastructure maintenance, construction of roads, and bridges.
– Whereas through Capital Expenditure, items like weapons, ammunition, fighter planes, etc., are purchased. This is the most crucial part in terms of strengthening the military.
– The Finance Minister has allocated 1.62 lakh crore rupees in the Capital budget for the fiscal year 2024-25.
– In the previous fiscal year, it was 1.52 lakh crore rupees.
– This means there’s only a nominal increase of 10 thousand crore rupees for the purchase of weapons.
– This is the most crucial part in terms of strengthening the military, as it involves the purchase of weapons, ammunition, fighter planes, etc.
– Whereas in the Revenue budget (salaries of all three forces), 2.82 lakh crore rupees are being allocated.
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4. How much budget has been allocated to important ministries under the interim budget 2024-25?
Important Ministry Budgets:
– Ministry of Defence: 6.2 lakh crore
– Ministry of Road Transport and Highways: 2.78 lakh crore
– Ministry of Railways: 2.55 lakh crore
– Ministry of Consumer Affairs, Food, and Public Distribution: 2.13 lakh crore
– Ministry of Home Affairs: 2.03 lakh crore
– Ministry of Rural Development: 1.77 lakh crore
– Ministry of Chemicals and Fertilizers: 1.68 lakh crore
– Ministry of Communications: 1.37 lakh crore
– Ministry of Agriculture and Farmers Welfare: 1.27 lakh crore
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5. Allocation for schemes in the Interim Budget 2024-25:
– Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA): ₹86,000 crore (previously ₹60,000 crore)
– Ayushman Bharat – PMJAY: ₹7,500 crore (previously ₹7,200 crore)
– Production-Linked Incentive (PLI) Scheme: ₹6,200 crore (previously ₹4,645 crore)
– Modified Program for Development of Semiconductor and Display Manufacturing Ecosystem: ₹6,903 crore (previously ₹3,000 crore)
– Solar Energy (Grid): ₹8,500 crore (previously ₹4,970 crore)
– National Green Hydrogen Mission: ₹600 crore (previously ₹297 crore)
– Allocation for Blue Revolution: ₹2,352 crore (previously ₹2,025 crore)
– PM Formalisation of Micro Food Processing Enterprises scheme: ₹880 crore (previously ₹639 crore)
– Pradhan Mantri Awas Yojana (PMAY): ₹80,671 crore (previously ₹79,590 crore)
Important facts:
– The average monthly GST collection in the financial year 2023-24 reached ₹1.66 lakh crore.
– Direct tax collections have increased by more than three times in the last 10 years.
– The PM Housing Scheme (Rural) is close to achieving its target of 3 crore houses, with an additional target of 2 crore houses in the next 5 years.
– The commitment to achieve net zero emissions by 2070.
– Financial assistance has been provided directly to 11.8 crore farmers under the PM-Kisan scheme.
– 25 crore people have been lifted out of multidimensional poverty.
– The launch of the U-Win platform for vaccination efforts under the Indradhanush Mission.
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6. Union Finance Minister announced to provide free electricity up to 300 units to how many families under rooftop solar?
a. 50 lakhs
b. 1 crore
c. 1.5 crore
d. 2 crore
Answer: b. 1 crore
– Since 2014, the government has been running the ‘National Rooftop Solar Scheme’.
– Recently, Prime Minister Modi also announced the ‘Pradhan Mantri Suryodaya Yojana’. Under this, rooftop solar panels will be installed in 1 crore households.
– Through this initiative, up to 300 units of free electricity will be provided to one crore families every month.
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7. Which new rail corridor was announced by the Finance Minister in the interim budget speech?
a. Energy, Mineral and Cement Corridor
b. Port Connectivity Corridor
c. High traffic density corridor
d. All of the above
Answer: d. All of the above (Energy, Mineral and Cement Corridors, Port Connectivity Corridors, High Traffic Density Corridors)
New Corridors:
– Energy and Cement Corridor: This corridor will be built separately for cement and coal transportation.
– Port Connectivity Corridor: This corridor will connect the country’s major ports.
– High Traffic Density Corridor: These corridors will be built where the number of trains will be higher.
Important Facts:
– Announcement has been made to convert 40,000 bogies to Vande Bharat standard to improve passenger safety and comfort. – Additionally, three new corridors have been announced for the railways.
– These corridors were identified under the PM Gati Shakti scheme to enable multi-modal connectivity. They will help in reducing costs.
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8. In the interim budget speech, the Finance Minister announced a fund of how much rupees for long-term financing of technological research?
a. 40 lakh crores
b. 1 lakh crore
c. 1.5 lakh crore
d. 2 lakh crores
Answer: b. 1 lakh crore
– Finance Minister Nirmala Sitharaman has announced a fund of ₹1 lakh crore for long-term financing of technological research.
– This loan will be for a duration of 50 years.
– No interest will be charged on this.
This will benefit the private sector in enhancing their research and innovation.
– The Finance Minister stated that the purpose of this fund is to focus on India’s tech-savvy youth.
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9. In the interim budget speech, the Finance Minister announced to set up a facility to convert coal into gas and make fuel by which year?
a. 2025
b. 2026
c. 2027
d. 2030
Answer: d. 2030
– To achieve the target of zero carbon emissions by 2070, the government has decided to reduce the import of ammonia and methanol gas.
– For this, facilities will be set up in the country by 2030 to convert coal into gas to produce fuel.
– The number of electric vehicles will also be increased.
– 6,585 charging stations will be set up for electric vehicles charging.
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10. Other announcements and plans
– The scope of Ayushman Bharat has been expanded, now Asha-Anganwadi workers will also be covered.
– The work of building 3 crore houses under the PM Housing Scheme (Rural) has been completed. Furthermore, an additional 2 crore houses will be built in the next 5 years. A housing scheme will be initiated for eligible middle-class individuals to purchase or build their own homes.
– The scope of Ayushman Bharat has been expanded, now Asha-Anganwadi workers will also be covered.
– The scope of Lakhpati Didi (Millionaire Sister) has been expanded, with a target to make 3 crore women millionaires. Under the scheme, women are provided with small loans for entrepreneurship, education, or other necessities.
– Vaccination will be promoted through the U-Win platform. Free vaccination will be provided to girls aged 9-14 to prevent cervical cancer. In India, after breast cancer, women are most affected by cervical cancer. Every year, more than 1,25,000 cervical cancer patients are diagnosed, with the number of deaths being over 77,000.
– Under Blue Economy 2.0, a new scheme will be launched, allowing tourists to engage in scuba diving. Blue Economy refers to researching and developing ocean-based economy or marine resources. Coastal states focus on development through Blue Economy, with the central government’s support. This is India’s first such maritime mission, where tourists will be offered scuba diving in the depths of the sea. The Blue Economy contributes approximately 4% to the country’s GDP.
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11. In the interim budget 2024-25, there is a provision for giving maximum grant-in-aid to which neighboring country?
a. Afghanistan
b. Bhutan
c. Sri Lanka
d. Maldives
Answer: b. Bhutan
– The budget includes a provision to grant Bhutan a total of 2068 crore rupees. This includes 989 crore rupees as a loan.
– India provides economic assistance to more than a dozen countries.
Amount of assistance granted to each country:
– Afghanistan: 200 crore
– Bangladesh: 120 crore
– Bhutan: 2068 crore (including 989 crore as loan)
– Nepal: 700 crore
– Sri Lanka: 75 crore
– Maldives: 600 crore
– Mongolia: 5 crore
– Other developing countries: 125 crore
– African countries: 200 crore
– Eurasian countries: 20 crore
– Latin American countries: 30 crore
– Mauritius: 370 crore
– Seychelles: 10 crore
– Myanmar: 250 crore
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12. There was no change in income tax exemption in the interim budget 2024-25, under this, how much exemption is there in the new (announced in 2023) income tax?
a. lakh
b. lakh
c. lakh
d. lakh
Answer: b. lakh
There are two types of income tax systems in the country – old and new.
– Old Tax System:
– 0% on income up to 3 lakhs
– 5% on income from 3-6 lakhs
– 10% on income from 6-9 lakhs
– 15% on income from 9-12 lakhs
– 20% on income from 12-15 lakhs
– 30% on income above 15 lakhs
New Tax System:
– The rebate limit for those opting for the new tax system has been increased to 7 lakhs rupees. Earlier, it was 5 lakhs rupees.
– However, under this, there is no exemption in situations like insurance and housing loans.
– Relief has been given to the salaried class in the budget.
– A standard deduction of 50,000 rupees has also been included in the new tax system. This means that no tax will be levied on salaries up to 7.5 lakhs rupees.
– But if your income does not come from salary, then you will not benefit from the standard deduction. This means that if your income exceeds 7 lakhs rupees by even a rupee, you will have to pay tax under the old tax system.
