Prelims Mantra (Practice Questions) (30/03/2026)

Answer: D

Explanation:

The Madhavpur Mela is a prominent cultural fair held annually in the coastal village of Madhavpur Ghed, Gujarat. It signifies the historical and mythological bond between the western and northeastern regions of India.

• • Mythological Roots: The fair commemorates the legendary marriage of Lord Krishna (from Dwarka, Gujarat) and Princess Rukmini. According to local folklore and the traditions of the Mishmi Tribe, Rukmini was the daughter of King Bhishmaka from present-day Arunachal Pradesh.
  • Cultural Integration: Since 2018, the festival has been scaled up by the Government of India as part of the “Ek Bharat Shreshtha Bharat” initiative. It brings together artists, artisans, and cultural troupes from eight Northeast states including Arunachal Pradesh, Manipur, and Assam to perform alongside Gujarati artists, creating a vibrant “East meets West” cultural exchange.

Answer: A

Explanation:

High government borrowing leads to several macroeconomic shifts, primarily through a mechanism known as the “Crowding Out Effect”:

• • Increase in interest rates: Correct. When the government borrows heavily, it increases the demand for loanable funds in the financial market. Since the supply of funds is relatively limited, this higher demand pushes up the cost of borrowing, leading to a rise in interest rates.
  • Crowding out of private investment: Correct. As interest rates rise, it becomes more expensive for private businesses to take loans for new projects, expansion, or innovation. Essentially, the government “crowds out” the private sector by absorbing a large portion of available credit, leading to a decline in private investment.
  • Reduction in public debt: Incorrect. Borrowing is the primary method used to finance a fiscal deficit. Therefore, high government borrowing increases the total public debt rather than reducing it

Answer: D

Explanation:

Petroleum products (specifically petroleum crude, high-speed diesel, motor spirit/petrol, natural gas, and aviation turbine fuel) are currently outside the GST net to preserve the fiscal autonomy and revenue streams of both the Central and State governments.

• • Fiscal Autonomy & Revenue Control:
    • State governments rely heavily on VAT (Value Added Tax) and Sales Tax from fuel, which often contributes 25–30% of their total tax revenue.
    • Unlike GST, where rates are fixed by the GST Council, states can independently adjust VAT rates to meet their unique fiscal needs or emergency funding requirements.
  • Revenue Loss Prevention:
    • The current effective tax on petrol and diesel in many states exceeds 50–60%.
    • Since the maximum GST slab is capped at 28%, bringing fuels under GST would lead to a massive revenue shortfall for both the Centre and States (estimated at several lakh crores annually).
  • Budgetary Stability:
    • The Centre continues to levy Central Excise Duty, while States levy VAT. This “dual taxation” provides a steady, high-volume income source that is less volatile than the sharing-based GST mechanism.

Answer: A

Explanation:

The Business Advisory Committee (BAC) is a key procedural committee in both the Lok Sabha and the Rajya Sabha that ensures the efficient functioning of the House by managing its schedule.

• • Primary Function: It recommends the allocation of time for the discussion of government legislative and other business (such as Bills, budgets, and the President’s Address) that the Speaker or Chairman refers to it.
  • Composition:
    • Lok Sabha: Consists of 15 members, including the Speaker, who acts as the ex-officio Chairman.
    • Rajya Sabha: Consists of 11 members, including the Chairman (Vice-President of India) as the ex-officio Chairman.
  • Significance: It represents all sections of the House, allowing the ruling party and the opposition to reach a consensus on the legislative agenda for each session.

Answer: B

Explanation:

1. Urea is under Nutrient-Based Subsidy: Incorrect. Urea is the only fertilizer whose price remains statutorily controlled by the Government of India. It is governed by a separate Urea Subsidy Scheme where the government fixes a uniform Maximum Retail Price (MRP) and compensates manufacturers for the difference between production cost and sale price. The Nutrient-Based Subsidy (NBS) scheme specifically covers Phosphatic and Potassic (P&K) fertilizers like DAP and MOP.

2. India imports potash: Correct.
India has negligible domestic reserves of potash and is almost 100% dependent on imports to meet its agricultural requirements. Major sources for these imports include countries like Canada, Russia, and Belarus.

3. Fertilizer subsidy supports farmers: Correct.
The primary mandate of fertilizer subsidies is to ensure that essential nutrients are available to farmers at affordable and stable prices. By subsidizing the cost for manufacturers and importers, the government lowers the financial burden on farmers, which helps maintain agricultural productivity and national food security.