Q11. What is Rajasthan’s approximate percentage contribution to the national Gross Domestic Product (GDP) of India in recent years?
Macro Overview of Rajasthan Economy and State Budget: RAS Prelims MCQs
76 RAS Prelims MCQs on the macro overview of the Rajasthan economy and its State budget cover the size of the economy, regional divides, the budget structure, the FRBM Act and public debt. Revenue and fiscal deficit, State Development Loans, guarantees, the State Finance Commission and the structural problems of the State are asked as definitions and statements.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 11–20 of 76 questions
Q12. Arrange the following sectors in the correct order based on Rajasthan’s relative share in the total national output of that sector, from highest contribution to lowest:
I. Information Technology Services
II. Non-Metallic Minerals (like Marble, Sandstone)
III. Agriculture (Oilseeds and Nutri-cereals)
I. Information Technology Services
II. Non-Metallic Minerals (like Marble, Sandstone)
III. Agriculture (Oilseeds and Nutri-cereals)
Explanation
Rajasthan’s relative contribution to national output is highest in the non-metallic minerals sector, where it holds a dominant position in marble and sandstone. This is followed by the agricultural sector, specifically in oilseeds and nutri-cereals. Although growing, the state’s share in national information technology services is currently the lowest among these three categories, reflecting a different developmental focus.
Q13. Read the following statements:
Statement I: Rajasthan’s economic growth rate has historically mirrored the national average, with occasional spikes due to good monsoon years.
Statement II: The state’s economy is structurally identical to the national economy in terms of the exact percentage share of Agriculture, Industry, and Services.
Which of the statements given above is/are correct?
Statement I: Rajasthan’s economic growth rate has historically mirrored the national average, with occasional spikes due to good monsoon years.
Statement II: The state’s economy is structurally identical to the national economy in terms of the exact percentage share of Agriculture, Industry, and Services.
Which of the statements given above is/are correct?
Explanation
Rajasthan’s economic growth rate has historically followed national trends, often showing higher spikes during years with favorable monsoons due to its large agricultural base. However, the state’s economic structure is not identical to the national economy. Rajasthan typically has a higher dependence on agriculture and a different sectoral distribution compared to the more industrialized and service-oriented national average.
Q14. Read the following statements regarding Rajasthan’s contribution to the national economy:
I. Rajasthan is the largest producer of crude oil in India among onshore fields.
II. Rajasthan contributes more than 20% to the total IT software exports of India.
III. The state is the leading producer of mustard and bajra in the country.
Which of the above statement(s) is/are correct?
I. Rajasthan is the largest producer of crude oil in India among onshore fields.
II. Rajasthan contributes more than 20% to the total IT software exports of India.
III. The state is the leading producer of mustard and bajra in the country.
Which of the above statement(s) is/are correct?
Explanation
Rajasthan is a significant energy producer, serving as the largest onshore source of crude oil in India. The state also leads the country in the production of essential crops like mustard and pearl millet. However, it does not account for a major share of India’s total information technology software exports, which are currently concentrated in other states like Karnataka and Telangana.
Q15. In the context of the pre-independence economic history of Rajasthan, the ‘Jagirdari system’ primarily functioned as a system of:
Explanation
Before independence, the Jagirdari system was the dominant socio-economic structure in the princely states of Rajputana. It functioned as a feudal arrangement where jagirdars were granted land rights in exchange for military service or administrative loyalty. They were responsible for collecting land revenue from peasants and maintaining local order, creating a highly traditional and hierarchical rural economic environment.
Q16. Which of the following is a correct statement regarding land reforms in Rajasthan post-independence?
Explanation
Significant land reforms were introduced in Rajasthan after independence to protect farmers and redistribute land fairly. The Rajasthan Tenancy Act of 1955 was a landmark piece of legislation that provided security of tenure and eliminated many exploitative feudal practices. These reforms aimed to empower actual tillers of the soil and provided a legal framework for more equitable agricultural development.
Q17. Which of the following was NOT a prominent feature of the economy of the princely states of Rajputana prior to independence?
Explanation
The economy of the princely states of Rajputana was characterized by traditional rainfed agriculture, cottage industries, and a lack of unified currency or customs systems. High integration with global financial markets was not a feature of that period. Most economic activities were localized or limited to internal trade, with the region remaining largely insulated from the modern international financial systems.
Q18. Read the following statements regarding phases and features of industrial development in Rajasthan post-independence:
I. The establishment of RIICO was a major step in developing industrial areas.
II. The early decades (1950-1970) saw massive private foreign direct investment in heavy industries.
III. The discovery of crude oil in Barmer basin significantly boosted the industrial landscape in the 2000s.
IV. Recent policies heavily emphasize the growth of the renewable energy sector.
Which of the above statement(s) is/are correct?
I. The establishment of RIICO was a major step in developing industrial areas.
II. The early decades (1950-1970) saw massive private foreign direct investment in heavy industries.
III. The discovery of crude oil in Barmer basin significantly boosted the industrial landscape in the 2000s.
IV. Recent policies heavily emphasize the growth of the renewable energy sector.
Which of the above statement(s) is/are correct?
Explanation
Industrial development in Rajasthan was boosted by the establishment of RIICO and the later discovery of crude oil in the Barmer basin. Recent policies have also successfully emphasized the growth of the renewable energy sector. However, the early decades after independence did not see massive private foreign direct investment in heavy industries, as the focus then was on state-led development.
Q19. The historical shift from subsistence farming to commercial farming in specific regions of Rajasthan (like Ganganagar and Hanumangarh) was primarily catalyzed by:
Explanation
The transformation of Ganganagar and Hanumangarh from arid regions into prosperous agricultural hubs was primarily driven by the Indira Gandhi Canal Project. This massive irrigation initiative provided a reliable water supply, allowing farmers to shift from subsistence crops to commercial varieties like wheat and cotton. This structural change catalyzed the regional economy and significantly increased the state’s total agricultural output.
Q20. Under the structure of the State Budget, the Revenue Account includes which of the following?
Explanation
The revenue account of the state budget handles the government’s recurring financial transactions. It includes revenue receipts such as tax and non-tax income, alongside revenue expenditures like salaries, pensions, and routine administrative costs. These transactions do not involve the creation of permanent assets or the repayment of debt, distinguishing the revenue account from the capital account in the overall budget.Answer key for these questions
| Q | Correct answer |
|---|---|
| 11 | (b) Around 5-6 percent |
| 12 | (b) II, III, I |
| 13 | (a) Only Statement I |
| 14 | (c) I and III |
| 15 | (a) Feudal land revenue collection and administration |
| 16 | (d) The Rajasthan Tenancy Act of 1955 provided security of tenure. |
| 17 | (b) High integration with global financial markets |
| 18 | (b) I, III and IV |
| 19 | (d) The introduction of the Indira Gandhi Canal Project (IGNP) |
| 20 | (a) Tax/non-tax receipts and routine administrative expenditures |
Key facts from Macro Overview of Rajasthan Economy and State Budget
- In terms of GSDP at current prices, Rajasthan typically ranks between 5th and 10th among States.
- The arid west grows bajra, moth bean and guar and relies on dryland farming and livestock; the east is fertile.
- The Rajasthan FRBM Act sets a fiscal deficit target of 3 per cent of GSDP and a debt-to-GSDP target of about 20 to 25 per cent.
- Revenue deficit is revenue expenditure minus revenue receipts; a persistent one means borrowing to meet routine expenses.
- State Development Loans are market borrowings raised through RBI auctions; the Centre’s consent under Article 293(3) controls State borrowing.
- The Indira Gandhi Canal Project helped the shift from subsistence to commercial farming; workforce dependence on low-yield agriculture is a structural challenge.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Macro Overview of Rajasthan Economy and State Budget?
This page has 76 practice MCQs on Macro Overview of Rajasthan Economy and State Budget (Rajasthan Economy). Each has the correct answer, and most have an explanation.
What is the fiscal deficit target under the Rajasthan FRBM Act?
About 3 per cent of GSDP. The Act also aims at inter-generational equity, requires medium-term policy statements to be placed before the Legislature and sets a glide path for the revenue deficit.
What is the Revenue Deficit?
Revenue expenditure minus revenue receipts. A persistent revenue deficit means that the government is borrowing to meet its day-to-day expenses, instead of building assets, and it adds to the State’s debt and interest burden.
What are State Development Loans?
Market borrowings raised by a State government through auctions held by the RBI. Their interest rates are decided by the market and not fixed by the Finance Commission, so they move with the market.