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Question

Debt obligations of Government of India (Government liabilities)
I. State Provident Funds
II. Small Savings
III. Reserve Funds and Deposits
IV. Consolidated Fund of India
Codes :

The correct answer is
I, II and III are correct.

Identifying Government Debt Obligations

Government liabilities, also known as debt obligations, represent amounts owed by the government to external parties. These typically arise from borrowings or funds held in trust.

Analysis of Listed Items

  • I. State Provident Funds: These are funds contributed by employees and employers, managed by the government. The government owes these funds back to the subscribers with interest, making them a clear government liability.
  • II. Small Savings: This category includes various schemes (like Public Provident Fund, National Savings Certificates) through which the government borrows funds from the public. These borrowings represent a debt obligation.
  • III. Reserve Funds and Deposits: These encompass various funds held by the government, including deposits from public sector undertakings or specific earmarked funds. Many of these represent liabilities as the government is obligated to manage or return these funds.
  • IV. Consolidated Fund of India: This fund is established under Article 112 of the Constitution. It represents the government's primary account where all revenues are received, and expenditures are authorized. While loans raised by the government are credited here and repaid from here, the fund itself is not a debt obligation but rather the central account for government finances.

Conclusion on Liabilities

Based on the analysis, State Provident Funds (I), Small Savings (II), and Reserve Funds and Deposits (III) constitute direct debt obligations or liabilities of the Government of India. The Consolidated Fund of India (IV) is an accounting mechanism, not a liability itself.

Therefore, items I, II, and III are correct.

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Important Questions from International Trade

  1. Consider the following statements about the international financial sources :

    I. A Global Depository Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign country.

    II. A GDR is very similar to American Depository Receipt (ADR).

    Select the correct option.

  2. Which of the following documents is not required for obtaining export license?

  3. _________ was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.

  4. Which one of the following does not fall within the ambit of WTO operations ?

  5. The following statements relate to Restrictive Trade Practices (RTP). Choose the correct code for the statements being correct or incorrect.

    Statement I: Often the low price is the result of the predatory pricing strategy; prompting selling at prices below cost.

    Statement II: This is done with an aim to drive out existing competitors because predatory pricing is a restrictive trade practice.

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