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Committees — Set 3

Economics · समितियां · Questions 2130 of 60

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1

Which committee recommended the 'Fiscal Responsibility and Budget Management (FRBM)' Act?

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Correct Answer: A. EAS Sarma Committee

The EAS Sarma Committee was set up to draft a law on fiscal responsibility. This led to the enactment of the FRBM Act in 2003. The act aimed to bring fiscal discipline by setting targets for the fiscal deficit.

2

The Bhagwati Committee (1973) was primarily concerned with?

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Correct Answer: D. Unemployment

The Bhagwati Committee was a committee of experts on unemployment. It provided estimates of the number of unemployed persons and suggested employment generation schemes. It also highlighted the difference between underemployment and total unemployment.

3

The Parthasarathi Shome Committee was appointed to look into which controversial tax issue?

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Correct Answer: B. GAAR (General Anti Avoidance Rules)

The Shome Committee recommended the deferment of GAAR to prevent negative impact on foreign investment. It emphasized that tax laws should be clear and predictable for investors. GAAR was eventually implemented with several modifications based on this report.

4

Which committee recommended the conversion of the Planning Commission into a think-tank body like NITI Aayog?

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Correct Answer: C. Ajay Chhibber Committee

The Ajay Chhibber Committee report was one of the early studies suggesting a shift from centralized planning. It argued that the Planning Commission was a vestige of the command economy. This eventually led to the cabinet resolution that created NITI Aayog.

5

The Swaminathan Commission (2004) is associated with which sector?

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Correct Answer: C. Agriculture

The correct answer is 'Agriculture'. The National Commission on Farmers, headed by M.S. Swaminathan, focused on agricultural sustainability. It famously recommended that Minimum Support Price (MSP) should be at least 50% more than the weighted average cost of production. This commission's reports are considered the benchmark for agrarian reforms.

6

Which committee recommended the 'Lead Bank Scheme' in India?

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Correct Answer: D. Gadgil Committee

The Gadgil Committee (1969) recommended the adoption of an area-specific approach to banking. This led to the Nariman Committee formalizing the Lead Bank Scheme. Under this, specific banks were assigned districts to lead financial development.

7

The Tandon Committee (1975) was appointed to recommend guidelines for?

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Correct Answer: A. Bank Credit to Industry

The Tandon Committee suggested norms for inventory levels and bank credit to industries. It aimed to ensure that credit was used for productive purposes only. These norms were standard for corporate lending for many years.

8

The Nayak Committee (1991) gave recommendations for the credit flow to which sector?

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Correct Answer: B. SSIs and Tiny Sector

The Nayak Committee recommended improving the flow of institutional credit to the Small Scale Industrial (SSI) sector. It suggested that banks should provide working capital based on a percentage of the annual turnover. This helped small entrepreneurs access funds more easily.

9

Which committee recommended the setting up of Regional Rural Banks (RRBs) in India?

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Correct Answer: B. Narasimham Committee (1975)

A working group under M. Narasimham recommended the creation of RRBs to provide credit to the rural poor. The first RRB, Prathama Bank, was established in October 1975. These banks aim to combine the local feel of cooperatives with the professionalism of commercial banks.

10

The Rekhi Committee was associated with which type of reforms?

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Correct Answer: C. Indirect Taxes

The Rekhi Committee (1992) suggested changes in the indirect tax structure. It advocated for a single tribunal for all indirect tax disputes. It focused on simplifying customs and excise procedures.