Union Budget 2020-21 Questions

Questions

Question 1: As per Union Budget 2021, what is the budgetary allocation for the Covid-19 vaccination?
a. Rs.30,000 crore
b. Rs. 35,000 crore
c. Rs.40,000 crore
d. Rs.37,000 crore
e. Rs. 42,000 crore

Answer: (b)
Explanation:

• Rs. 35,000 crores for COVID-19 vaccine in BE 2021-22.
• The Made-in-India Pneumococcal Vaccine to be rolled out across the country, from the present 5 states – to avert 50,000 child deaths annually.

Question 2: As per the Union Budget 2021, what is the outlay for Health and Wellbeing in BE2021-22?
a. Rs. 2,24,000 crore
b. Rs. 2,25,000 crore
c. Rs. 2,23,846 crore
d. Rs. 2,22,700 crore
e. Rs. 2,26,752 crore

Answer: (c)
Explanation:

• Rs. 2,23,846 crore outlay for Health and Wellbeing in BE 2021-22 as against Rs. 94,452 crore in BE 2020-21 – an increase of 137%
• Focus on strengthening three areas: Preventive, Curative, and Wellbeing

Question 3: As per the Union Budget 2021, what is the outlay for PM AatmaNirbhar Swasth Bharat Yojana?
a. Rs. 60,000 crore
b. Rs. 64,000 crore
c. Rs. 64,180 crore
d. Rs. 64, 500 crore
e. Rs. 64,250 crore

Answer: (c)
Explanation:

• Rs. 64,180 crore outlay over 6 years for PM AatmaNirbhar Swasth Bharat Yojana – a new centrally sponsored scheme to be launched, in addition to NHM
• Main interventions under PM AatmaNirbhar Swasth Bharat Yojana:

• National Institution for One Health
• 17,788 rural and 11,024 urban Health and Wellness Centers
• 4 regional National Institutes for Virology
• 15 Health Emergency Operation Centers and 2 mobile hospitals
• Integrated public health labs in all districts and 3382 block public health units in 11 states
• Critical care hospital blocks in 602 districts and 12 central institutions
• Strengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance units
• Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs
• 17 new Public Health Units and strengthening of 33 existing Public Health Units
• Regional Research Platform for the WHO South-East Asia Region
• 9 Bio-Safety Level III laboratories

Question 4: As per the Union Budget 2021, what is the budgetary allocation for Jal Jeevan Mission (Urban)?
a. Rs. 2,85,000 crore
b. Rs. 2,87,000 crore
c. Rs. 2,78,000 crore
d. Rs. 2,93,000 crore
e. Rs. 2,81,000 crore

Answer: (b)
Explanation: Rs. 2,87,000 crore over 5 years for Jal Jeevan Mission (Urban) - to be launched with an aim to provide:

• 2.86 crore household tap connections
• Universal water supply in all 4,378 Urban Local Bodies
• Liquid waste management in 500 AMRUT cities

Question 5: As per the Union Budget 2021, what is the budgetary allocation for Urban Swachh Bharat Mission 2.0?
a. Rs. 1,42,000 crore
b. Rs. 1,43,500 crore
c. Rs. 1,41,678 crore
d. Rs. 1,40,000 crore
e. Rs. 1,41,300 crore

Answer: (c)
Explanation:

• Rs. 1,41,678 crore over 5 years for Urban Swachh Bharat Mission 2.0
• Main interventions under Swachh Bharat Mission (Urban) 2.0:
• Complete faecal sludge management and wastewater treatment
• Source segregation of garbage
• Reduction in single-use plastic
• Reduction in air pollution by effectively managing waste from construction-and-demolition activities
• Bio-remediation of all legacy dump sites.

Question 6: As per the Union Budget 2021, after how much time the fitness test of the vehicle in case of a personal vehicle is mandatory to be conducted under the scrapping policy?
a. After 5 years
b. After 10 years
c. After 15 years
d. After 20 years
e. After 25 years

Answer: (d)
Explanation:

• Voluntary vehicle scrapping policy to phase out old and unfit vehicles
• Fitness tests in automated fitness centres:
• After 20 years in the case of personal vehicles
• After 15 years in the case of commercial vehicles

Question 7: As per the Union Budget 2021, after how much time the fitness test of the vehicle in case of commercial vehicle is mandatory to be conducted under the scrapping policy?
a. After 5 years
b. After 10 years
c. After 15 years
d. After 20 years
e. After 25 years

Answer: (c)
Explanation:

• Voluntary vehicle scrapping policy to phase out old and unfit vehicles
• Fitness tests in automated fitness centres:
• After 20 years in the case of personal vehicles
• After 15 years in the case of commercial vehicles

Question 8: As per the Union Budget 2021, what is the budgetary allocation for the Production Linked Incentive scheme (PLI)?
a. Rs. 1.87 lakh crore
b. Rs. 1.95 lakh crore
c. Rs. 1.97 lakh crore
d. Rs. 1.85 lakh crore
e. Rs. 1.90 lakh crore

Answer: (c)
Explanation:

• Rs. 1.97 lakh crore in the next 5 years for PLI schemes in 13 Sectors
• To create and nurture manufacturing global champions for an AatmaNirbhar Bharat
• To help manufacturing companies become an integral part of global supply chains, possess core competence and cutting-edge technology
• To bring scale and size in key sectors
• To provide jobs to the youth

Question 9: As per the Union Budget 2021, what is the budgetary allocation for setting up and capitalizing a Development Financial Institution(DFI)?
a. Rs. 10,000 crore
b. Rs. 15,000 crore
c. Rs. 20,000 crore
d. Rs. 25,000 crore
e. Rs. 30,000 crore

Answer: (c)
Explanation:

• Rs. 20,000 crores to set up and capitalise a Development Financial Institution(DFI) – to act as a provider, enabler and catalyst for infrastructure financing
• Rs. 5 lakh crore lending portfolio to be created under the proposed DFI in 3 years
• Debt Financing by Foreign Portfolio Investors to be enabled by amending InvITs’ and REITs’ legislations.

Question 10: As per the Union Budget 2021, what is the budgetary allocation for a new scheme to augment public bus transport?
a. Rs. 16,000 crore
b. Rs. 18,000 crore
c. Rs. 17,000 crore
d. Rs. 20,000 crore
e. Rs. 19,000 crore

Answer: (b)
Explanation: Rs. 18,000 crore for a new scheme, to augment public bus transport:

• Innovative PPP models to run more than 20,000 buses
• To boost the automobile sector, provide a fillip to economic growth, create employment opportunities for our youth
• A total of 702 km of the conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities
• ‘MetroLite’ and ‘MetroNeo’ technologies to provide metro rail systems at a much lesser cost with similar experience in Tier-2 cities and peripheral areas of Tier-1 cities.

Question 11: As per the Union Budget 2021, which of the following technologies will be introduced to the metro rail system?
a. MetroLite
b. MetroNeo
c. Both a and b
d. Either a or b
e. None of these

Answer: (c)
Explanation: ‘MetroLite’ and ‘MetroNeo’ technologies to provide metro rail systems at a much lesser cost with similar experience in Tier-2 cities and peripheral areas of Tier-1 cities.

Question 12: As per the Union Budget 2021, what is the increase in permissible FDI limit in the Insurance sector?

a. 49%
b. 74%
c. 50%
d. 75%
e. 65%

Answer: (b)
Explanation: Union budget 2021 proposed to increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.

Question 13: As per the Union Budget 2021, what is the minimum loan size eligible for debt recovery under SARFAESI Act, 2002 for NBFCs?
a. Rs. 50 lakh
b. Rs. 20 lakh
c. Rs. 35 lakh
d. Rs. 30 lakh
e. Rs. 25 lakh

Answer: (b)
Explanation: Minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 proposed to be reduced from Rs. 50 lakh to Rs. 20 lakh for NBFCs with a minimum asset size of Rs. 100 crore.

Question 14: As per the Union Budget 2021, which of the following expressways has not been proposed?
a. Delhi-Mumbai Expressway
b. Bengaluru-Chennai Expressway
c. Kanpur-Lucknow Expressway
d. Delhi-Dehradun economic corridor
e. Ludhiana-Meerut Expressway

Answer: (e)
Explanation: Flagship Corridors/Expressways:

• Delhi-Mumbai Expressway – Remaining 260 km to be awarded before 31.3.2021
• Bengaluru-Chennai Expressway – 278 km to be initiated in the current FY; construction to begin in 2021-22
• Kanpur-Lucknow Expressway – 63 km expressway providing an alternate route to NH 27 to be initiated in 2021-22.
• Delhi-Dehradun economic corridor – 210 km to be initiated in the current FY; construction to begin in 2021-22
• Raipur-Vishakhapatnam – 464 km passing through Chhattisgarh, Odisha and North Andhra Pradesh, to be awarded in the current year; construction to start in 2021-22
• Chennai-Salem corridor – 277 km expressway to be awarded and construction to start in 2021-22
• Amritsar-Jamnagar – Construction to commence in 2021-22
• Delhi-Katra – Construction will commence in 2021-22

Question 15: As per the Union Budget 2021, it has been proposed to provide support for the development of a world-class Fin-Tech hub. Where does it locate?
a. Mumbai
b. Gujrat
c. Punjab
d. Kerela
e. Delhi

Answer: (b)
Explanation: As per the Union Budget 2021, it has been proposed to provide support for the development of a world-class Fin-Tech hub at the (Gujarat International Finance Tec-City) GIFT -IFSC.

Question 16: As per the Union Budget 2021, what is the budgetary allocation for Solar Energy Corporation?

a. Rs. 1000 crore
b. Rs. 1500 crore
c. Rs. 2000 crore
d. Rs. 2500 crore
e. Rs. 3000 crore

Answer: (a)
Explanation: As per the Union Budget 2021, the Capital infusion is Rs. 1,000 crores to Solar Energy Corporation of India.

Question 17: As per the Union Budget 2021, what is the budgetary allocation for Indian Renewable Energy Development Agency?

a. Rs. 1000 crore
b. Rs. 1500 crore
c. Rs. 2000 crore
d. Rs. 2500 crore
e. Rs. 3000 crore

Answer: (b)
Explanation: As per the Union Budget 2021, the Capital infusion is Rs. 1,500 crores to Indian Renewable Energy Development Agency.

Question 18: As per the Union Budget 2021, what is the budgetary allocation for the recapitalization of Public Sector Banks (PSBs)?

a. Rs. 10,000 crore
b. Rs. 15,000 crore
c. Rs. 20,000 crore
d. Rs. 25,000 crore
e. Rs. 30,000 crore

Answer: (c)
Explanation: As per the Union Budget 2021, Rs. 20,000 crore in 2021-22 is proposed to further consolidate the financial capacity of PSBs.

Question 19: As per the Union Budget 2021, what is the maximum threshold for Paid-up Capital for Small Companies under the Companies Act?

a. Rs. 50 lakhs
b. Rs. 2 crore
c. Rs. 20 crore
d. Rs 10 crore
e. Rs 5 crore

Answer: (b)
Explanation: Easing Compliance requirement of Small companies by revising their definition under Companies Act, 2013 by increasing their thresholds for Paid-up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Cr”.

Question 20: As per the Union Budget 2021, what is the maximum threshold for turnover for Small Companies under the Companies Act?

a. Rs. 50 lakhs
b. Rs. 2 crore
c. Rs. 20 crore
d. Rs 10 crore
e. Rs 5 crore

Answer: (c)
Explanation: Easing Compliance requirement of Small companies by revising their definition under Companies Act, 2013 by increasing their thresholds for Paid-up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Cr”.

Question 21: As per the Union Budget 2021, what is the prescribed residency limit for an Indian citizen to set up a One Person Company (OPC) in India?

a. 182 days
b. 120 days
c. 365 days
d. 240 days
e. 150 days

Answer: (b)
Explanation: Promoting start-ups and innovators by incentivizing the incorporation of One Person Companies (OPCs):

• Allowing their growth without any restrictions on paid-up capital and turnover
• Allowing their conversion into any other type of company at any time,
• Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and
• Allowing Non-Resident Indians (NRIs) to incorporate OPCs in India.

Question 22: As per the Union Budget 2021, the government of India is going to launch Initial Public Offerings (IPO) of which of the following companies in 2021-22?
a. BEML
b. BPCL
c. IDBI Bank
d. Air India
e. LIC

Answer: (e)
Explanation: IPO of LIC in 2021-22.

Question 23: As per the Union Budget 2021, what is the minimum ensured MSP on the cost of production across all the commodities?

a. 2 times
b. 5 times
c. 1.5 times
d. 2.5 times
e. 3 times

Answer: (c)
Explanation:

• Ensured MSP at minimum 1.5 times the cost of production across all commodities.
• With the steady increase in procurement, payment to farmers increased as under:

	2013-14	2019-20	2020-21
Wheat	Rs. 33,874	Rs. 62,802	Rs. 75,060
Rice	Rs. 63,928	Rs. 1,41,930	Rs. 172,752
Pulses	Rs. 236	Rs. 8,285	Rs. 10,530

Question 24: As per the Union Budget 2021, Multipurpose Seaweed Park is going to promote seaweed Cultivation. Where is the park located?

a. Gujrat
b. Punjab
c. Haryana
d. Tamil Nadu
e. Kerela

Answer: (d)
Explanation: Multipurpose Seaweed Park in Tamil Nadu to promote seaweed cultivation.

Question 25: As per the Union Budget 2021, which university is going to come up in Leh for the accessibility of higher education in Ladakh?

a. Amity University
b. IGNOU
c. IIM
d. IIT
e. Central University

Answer: (e)
Explanation: Central University to come up in Leh for accessibility of higher education in Ladakh.

Question 26: As per the Union Budget 2021, what is the budgetary allocation for the Post Matric Scholarship Scheme for the welfare of SCs?

a. Rs. 35,219 crore
b. Rs. 30,200 crore
c. Rs. 45,000 crore
d. Rs. 39,500 crore
e. Rs. 25,000 crore

Answer: (a)
Explanation:

• 750 Eklavya model residential schools in tribal areas:
• The unit cost of each school to be increased to Rs. 38 crore
• For hilly and difficult areas, to Rs. 48 crore
• Focus on the creation of robust infrastructure facilities for tribal students
• Revamped Post Matric Scholarship Scheme for the welfare of SCs
• Rs. 35,219 crores enhanced Central Assistance for 6 years till 2025-2026
• 4 crore SC students to benefit

Question 27: As per the Union Budget 2021, what is the budgetary allocation for the National Research Foundation?
a. Rs. 50,000 crore
b. Rs. 40,000 crore
c. Rs. 20,000 crore
d. Rs. 25,000 crore
e. Rs. 10,000 crore

Answer: (a)
Explanation: Modalities of National Research Foundation announced in July 2019 –

• Rs. 50,000 crore outlay over 5 years
• To strengthen the overall research ecosystem with a focus on national-priority thrust areas

Question 28: As per the Union Budget 2021, what is the budgetary allocation for Deep Ocean Mission?
a. Rs. 5,000 crore
b. Rs. 10,000 crore
c. Rs. 8,000 crore
d. Rs. 15,000 crore
e. Rs. 4,000 crore

Answer: (e)
Explanation: Rs. 4,000 crore over five years for Deep Ocean Mission survey exploration and conservation of deep-sea biodiversity.

Question 29: As per the Union Budget 2021, what is the budgetary allocation for the first digital census?

a. Rs. 3,768 crore
b. Rs. 300 crore
c. Rs. 1,000 crore
d. Rs. 2,598 crore
e. Rs. 3,000 crore

Answer: (a)
Explanation: Rs. 3,768 crore allocated for the first digital census in the history of India.

Question 30: As per the Union Budget 2021, what is the estimated fiscal deficit for the year 2021-22?
a. 9.5%
b. 6.8%
c. 6.5%
d. 5%
e. 7.9%

Answer: (b)
Explanation: The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP. The fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP - funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowings.

Question 31: As per the Union Budget 2021, National Infrastructure Pipeline (NIP) has expanded to how many projects?

a. 7,400 projects
b. 217 projects
c. 5,000 projects
d. 2,500 projects
e. 3,000 projects

Answer: (a)
Explanation:

• National Infrastructure Pipeline (NIP) expanded to 7,400 projects:
• Around 217 projects worth Rs. 1.10 lakh crore completed
• Measures in three thrust areas to increase funding for NIP:
• Creation of institutional structures
• Big thrust on monetizing assets
• Enhancing the share of capital expenditure

Question 32: As per the Union Budget 2021, what is the outlay for the Ministry of Road Transport and Highways?
a. Rs. 1,18,101 lakh crore
b. Rs. 1,00,000 lakh crore
c. Rs. 1,18,000 lakh crore
d. Rs. 1,20,000 lakh crore
e. Rs. 1,11,111 lakh crore

Answer: (a)
Explanation: Rs. 1,18,101 lakh crore, highest ever outlay, for Ministry of Road Transport and Highways – of which Rs. 1,08,230 crore is for capital.

Question 33: As per the Union Budget 2021, what is the estimated capital expenditure for Railways?

a. Rs. 1,10,055 crore
b. Rs. 1,07,100 crore
c. Rs. 1,00,000 crore
d. 1,05,000 crore
e. 1,10,100 crore

Answer: (b)
Explanation: Rs. 1,10,055 crore for Railways of which Rs. 1,07,100 crore is for capital expenditure.

Question 34: As per the Union Budget 2021, the National Rail Plan to create a ‘future ready’ Railway System by:

a. 2022
b. 2025
c. 2023
d. 2030
e. 2027

Answer: (d)
Explanation: National Rail Plan for India (2030): to create a ‘future ready’ Railway system by 2030.

Question 35: As per the Union Budget 2021, what is the purpose of the SWAMITVA Scheme?

a. to provide an integrated property validation solution for rural India
b. to provide concessional LPG connections to the entire nation
c. to encourage local companies to set up or expand existing manufacturing units
d. to facilitate bank loans to SC/STs
e. none of these

Answer: (a)
Explanation:

• Ministry of Panchayati Raj (MoPR) is the Nodal Ministry for implementation of the scheme
• Aims to provide an integrated property validation solution for rural India.
• SWAMITVA Scheme to be extended to all States/UTs, 1.80 lakh property-owners in 1,241 villages have already been provided cards

Question 36: As per the Union Budget 2021, what is the budgetary allocation for agriculture credit?
a. Rs. 15 lakh crore
b. Rs. 10 lakh crore
c. Rs. 12 lakh crore
d. Rs. 16.5 lakh crore
e. Rs. 25 lakh crore

Answer: (d)
Explanation: Agricultural credit target enhanced to Rs. 16.5 lakh crore in FY22 - animal husbandry, dairy, and fisheries to be the focus areas.

Question 37: As per the Union Budget 2021, what is the budgetary allocation for Micro Irrigation Fund?
a. Rs. 10,000 crore
b. Rs. 15,000 crore
c. Rs. 12,000 crore
d. Rs. 20,000 crore
e. Rs. 18,000 crore

Answer: (a)
Explanation: To double the Micro Irrigation Fund to Rs. 10,000 crore.

Question 38: As per the Union Budget 2021, what is the budgetary allocation for the Rural Infrastructure Development Fund?

a. Rs. 40,000 crore
b. Rs. 30,000 crore
c. Rs. 50,000 crore
d. Rs. 25,000 crore
e. Rs. 20,000 crore

Answer: (a)
Explanation: Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 crore.

Question 39: As per the Union Budget 2021, by implementing NEP components, how many schools will be strengthened?
a. 15,000 schools
b. 10,000 schools
c. 25,000 schools
d. 5,000 schools
e. 30,000 schools

Answer: (a)
Explanation: 15,000 schools to be strengthened by implementing all NEP components. Shall act as exemplar schools in their regions for mentoring others.

Question 40: As per the Union Budget 2021, what is the age limit for senior citizens exempted from filing the tax returns?
a. Over 60 years
b. Over 65 years
c. Over 70 years
d. Over 75 years
e. Over 80 years

Answer: (d)
Explanation: Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying bank.

Question 41: As per the Union Budget 2021, how much net borrowing for states is allowed for the year 2021-22 on recommendations of 15th FC?
a. 4% of GSDP
b. 5% of GSDP
c. 8% of GSDP
d. 0.5% of GSDP
e. 2% of GSDP

Answer: (a)
Explanation: Net borrowing for the states allowed at 4% of GSDP for the year 2021-2022 as per the recommendation of the 15th FC

• Part of this earmarked for incremental capital expenditure
• Additional borrowing ceiling of 0.5% of GSDP will be provided subject to conditions

Question 42: As per the Union Budget 2021, what is the time limit for reopening cases in Direct Taxation?
a. 6 years
b. 3 years
c. 5 years
d. 4 years
e. 10 years

Answer: (b)
Explanation: Time limit for re-opening cases reduced to 3 years from 6 years.

Question 43: As per the Union Budget 2021, what is the limit of turnover for a tax audit?
a. Rs. 5 crore
b. Rs. 10 crore
c. Rs. 2 crore
d. Rs. 50 lakhs
e. Rs. 15 crore

Answer: (b)
Explanation: Limit of turnover for tax audit increased to Rs. 10 crores from Rs. 5 crores for entities carrying out 95% transactions digitally.

Question 44: As per the Union Budget 2021, Section 80EEA has been introduced in the Income Tax Act according to which, an additional deduction of interest up to Rs. 1.5 lakhs is allowed. What is the maximum stamp duty value of the house property should be there the avail the additional deduction?

a. Rs. 50 lakhs
b. Rs. 1 crore
c. Rs. 45 lakhs
d. Rs. 5 crore
e. Rs. 20 lakhs

Answer: (c)
Explanation:

• Additional deduction of interest, up to Rs. 1.5 lakh, for a loan taken to buy an affordable house extended for loans taken till March 2022
• Tax holiday for Affordable Housing projects extended till March 2022
• Tax exemption allowed for notified Affordable Rental Housing Projects
• The stamp duty value of the house property should be Rs 45 lakhs or less.

Question 45: As per the Union Budget 2021, what is the exemption limit of annual receipts for small charitable trusts running schools and hospitals?
a. Rs. 1 crore
b. Rs. 5 crore
c. Rs. 10 crore
d. Rs. 2 crore
e. Rs. 50 lakhs

Answer: (a)
Explanation: Exemption limit of annual receipt revised from Rs. 1 crore to Rs. 5 crore for small charitable trusts running schools and hospitals.