Ans: B

Exp:

The Reserve Bank of India’s (RBI) report on “State Finances – A Study of Budgets of 2024-25” highlights the fiscal risks posed by the increasing subsidy burden. Subsidies, including free electricity, farm loan waivers, and cash transfers, often strain the fiscal capacity of state governments. While these measures aim to provide immediate relief to certain sections of society, they have broader implications:

• Crowding Out Capital Expenditure:

1. 1. • Subsidy spending consumes a significant share of the fiscal space, leaving limited resources for growth-enhancing capital expenditures, such as building social and economic infrastructure.

• The report points out that despite improvements in capital expenditure (rising from 2.4% of GDP in 2021-22 to 2.8% in 2023-24), a growing subsidy burden could hinder further progress, Hence Option b is Correct.

• Long-Term Economic Impacts:

1. 1. • Unlike capital investments in infrastructure (such as roads, schools, or hospitals), subsidies do not generate long-term economic returns. This imbalance risks stagnating economic development and reducing job creation.

• Debt Levels and Borrowing:

1. 1. • To fund high subsidies, states often rely on increased market borrowings, as observed in FY24, where gross market borrowings surged by 32.8%. This contributes to persistently high debt-to-GDP ratios, which stood at 28.5% of GDP at the end of March 2024, well above the pre-pandemic level of 25.3%.
      • Borrowings finance 79% of states’ GFDs in FY25, increasing fiscal vulnerability.

• Fiscal Consolidation Challenges:

1. 1. • The report stresses that high debt levels and subsidy burdens demand continued fiscal prudence. While states have adhered to the Fiscal Responsibility Legislation (FRL) limit of 3% for the GFD, rising subsidies pose a risk to sustained fiscal discipline.

• Opportunity Cost of Subsidies:

1. • Funds diverted to subsidies could instead be used for development-oriented spending, such as improving health, education, and industrial growth. For instance, states prioritizing subsidies may delay projects critical for economic resilience and future growth.

Ans: C

Exp:

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY- NRLM) has taken steps in leveraging the business ventures, technology and finance of women Self-Help Groups (SHGs) and encouraging market and business expansion across the country. 

• Cumulatively, 10.05 crores women in the country have been mobilised into 90.87 lakh SHGs.

About Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM): 

• It is a flagship poverty alleviation program implemented by the Ministry of Rural Development, Government of India. 
• It aims to reduce poverty by enabling the poor household to access gainful self-employment and skilled wage employment opportunities resulting in sustainable and diversified livelihood options for the poor.

The Start-up Village Entrepreneurship Programme (SVEP), a sub-scheme under DAY-NRLM supports the SHG women or their family members to set up small enterprises. Hence Statement 1 is Correct. 

DAY-NRLM provides funds to create a resource in perpetuity for the community institutions to strengthen their institutional and financial management capacity and build their track record to attract mainstream Bank finance. 

These include Revolving Fund of Rs. 20,000 to Rs. 30,000 per SHG and Community Investment Fund up-to Rs. 2.50 lakh per SHG, Hence Statement 2 is Incorrect.

SHG women are deployed as Banking Correspondent Sakhis, improving access to Banking services, including deposits, credit, remittances, pensions and insurance etc. 

• The number of Banking Correspondents Sakhis/Digipay Sakhis deployed with support of DAY-NRLM is 1,35,127, Hence Statement 3 is Correct.

Ans: A

Exp:

Recently, the Union Government re-imposed the PAP regime in 3 north-eastern states (Manipur, Mizoram and Nagaland). 

• It was scrapped in 2011 to boost tourism in the states.

About PAP regime: 

1. Statement 1is Correct: The PAP regime is governed by the Foreigners (Protected Areas) Order, 1958.
2. Statement 2 is Correct:  The PAP applies to areas between the ‘Inner Line’ and the international border of certain states, including the whole of Arunachal Pradesh, and parts of Himachal Pradesh, Rajasthan, and Uttarakhand.
3. Statement 3 is Incorrect: Foreign nationals require a special permit to visit these areas, as the PAP imposes restrictions on their entry.
4. Statement 4 is Incorrect: The Union Ministry of Home Affairs is the competent authority to issue Protected Area Permits, not the Ministry of External Affairs.

Ans: D

Exp: 

A study published in the Springer Nature Journal reveals that California ground squirrels, previously considered herbivorous or mild omnivores, can exhibit predatory behavior by hunting voles.

• • The research, conducted by the University of Wisconsin-Eau Claire and the University of California, Davis, categorizes these squirrels as “opportunistic omnivores.”

• Statement 1 is Correct. Several species of turtles, such as green sea turtles, are predominantly herbivorous, feeding on seaweed and algae.

• Statement 2 is Correct. Examples include surgeonfish and parrotfish, which primarily feed on algae and plant matter.

• Statement 3 is Correct. The study mentioned provides evidence that California ground squirrels exhibit omnivorous behavior, including the hunting of voles.

• Statement 4 is Correct. Certain snake species, such as boas and vipers, are viviparous, meaning they give birth to live young instead of laying eggs.

Ans: B

Exp:

The Cabinet Committee on Economic Affairs has given its approval for the Minimum Support Price (MSP) for copra for 2025 season.

• • Accordingly, MSP for Fair Average Quality of milling copra has been fixed at ₹ 11582/- per quintal and for ball copra at ₹ 12100/- per quintal for 2025 season. Hence Statement 1 is Correct.

• National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) act as Central Nodal Agencies (CNAs) for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS). Hence Statement 2 is Correct.

Factors Influencing the Government’s Decision on MSP for Farm Products:

• The government decides on the MSP for farm products based on the recommendation of the Commission for Agricultural Costs and Prices (CACP), which takes into account following Factors:

• • The cost of production,
  • Demand and supply of copra and coconut oil,
  • Trends in the domestic and global prices of other vegetable oils, 
  • The profitability of coconut vis-à-vis other crops, and 
  • Likely impact of the recommended MSP on consumers and other users. 

It also ensures a minimum margin of 50 percent over the all-India weighted average cost of production.

State wise Copra Production: 

Season Timeline: The copra season runs from January to April annually.