UPSC CIVIL SERVICES PRELIMINARY EXAMINATION

UPSC Prelims 2020— Question 36

2020General Studies Paper-IEconomyPublic Financemoderate
Q36

Question

Along with the Budget, the Finance Minister also places other documents before the parliament which include ‘The Macro Economic Framework Statement‘. The aforesaid document is presented because this is mandated by

Options

A
Long-standing parliamentary convention
B
Article 112 and Article 110(1) of the Constitution of India
C
Article 113 of the Constitution of India
D
Provisions of the Fiscal Responsibility and Budget Management Act, 2003✓ Correct Answer
AnswerOption D

Explanation

This question tests macro-economic framework statement. The key concept is: The Macro-Economic Framework Statement is one of the budget documents mandated by the Fiscal Responsibility and Budget Management Act, 2003. The FRBM framework requires presentation of specified fiscal and macroeconomic statements alongside the budget to improve transparency and fiscal discipline. The verified answer for the uploaded Set-B paper is option D. Option A — Long-standing parliamentary convention: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The Macro-Economic Framework Statement is one of the budget documents mandated by the Fiscal Responsibility and Budget Management Act, 2003. The FRBM framework requires presentation of specified fiscal and macroeconomic statements alongside the budget to improve transparency and fiscal discipline. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option B — Article 112 and Article 110(1) of the Constitution of India: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The Macro-Economic Framework Statement is one of the budget documents mandated by the Fiscal Responsibility and Budget Management Act, 2003. The FRBM framework requires presentation of specified fiscal and macroeconomic statements alongside the budget to improve transparency and fiscal discipline. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option C — Article 113 of the Constitution of India: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The Macro-Economic Framework Statement is one of the budget documents mandated by the Fiscal Responsibility and Budget Management Act, 2003. The FRBM framework requires presentation of specified fiscal and macroeconomic statements alongside the budget to improve transparency and fiscal discipline. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option D — Provisions of the Fiscal Responsibility and Budget Management Act, 2003: This is the correct option. It matches the verified conclusion because The Macro-Economic Framework Statement is one of the budget documents mandated by the Fiscal Responsibility and Budget Management Act, 2003. The FRBM framework requires presentation of specified fiscal and macroeconomic statements alongside the budget to improve transparency and fiscal discipline. The wording of the option is consistent with the governing concept tested by the question. For UPSC-style elimination, first identify the exact proposition being tested, then evaluate each statement independently before comparing the answer codes. Avoid treating a broad or absolute statement as correct merely because its general theme is familiar. The precise qualifiers in the question—such as 'all', 'only', 'cannot', 'largest', 'always' or a specific institutional role—often determine the answer. On that basis, option D is the verified answer.

Question Classification

SubjectEconomy
TopicPublic Finance
SubtopicTerminal topic
Question TypeDirect MCQ
Difficultymoderate
VerificationVerified