721 RAS Prelims practice MCQs on the economy of Rajasthan are on this page, in 11 chapters. They cover the macro overview and State budget, agriculture, industry, the service sector, energy and transport infrastructure, rural development and Panchayati Raj, the State Finance Commission, education, health and the major welfare schemes. Each question has an answer and an explanation.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 61–70 of 721 questions
Browse Rajasthan Economy chapters
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q61. The following question consists of two statements, one labeled as Assertion (A) and the other as Reason (R). Examine these two statements carefully and select the correct answer. Assertion (A): The Rajasthan FRBM Act aims to ensure inter-generational equity in fiscal management. Reason (R): High public debt accumulation today forces future generations of the state to bear the burden of higher taxes and reduced developmental expenditure.
Explanation
The FRBM Act aims for inter-generational equity because heavy debt built up today forces future generations to bear higher taxes and lower development spending. R explains A.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q62. Which of the following is an incorrect statement regarding the provisions of the Rajasthan Fiscal Responsibility and Budget Management (FRBM) Act?
Explanation
The FRBM Act lays a Medium Term Fiscal Policy Statement, reduces the fiscal deficit step by step and enforces discipline and transparency. It does not prohibit all borrowing in disasters, since there is an escape clause, so A is incorrect.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q63. What is the primary mechanism through which the Government of India ensures that the State of Rajasthan complies with the FRBM borrowing limits?
Explanation
The Centre controls State borrowing through its consent under Article 293(3), which a State needs when it owes money to the Centre.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q64. In the context of Rajasthan’s public debt management, the term "Internal Debt" of the state comprises:
Explanation
The internal debt of a State consists of market loans, financial borrowings and securities issued within India. Foreign loans are not part of it.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q65. Select the correct sequence of the components of Rajasthan’s total outstanding public debt, generally ordered from largest share to smallest share:
Explanation
In Rajasthan’s public debt the largest component is internal debt (market borrowings), then public account liabilities and then loans from the Centre.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q66. Read the following statements: Statement I: State Development Loans (SDLs) are market borrowings raised by the Rajasthan government through RBI auctions. Statement II: Interest rates on SDLs are completely independent of market forces and are fixed permanently by the Finance Commission. Which of the statements given above is/are correct?
Explanation
State Development Loans are market borrowings raised through RBI auctions, so Statement I is correct. Their interest rates are set by market forces and not fixed by the Finance Commission, so Statement II is incorrect.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q67. Read the following statements regarding the management of guarantees given by the Rajasthan state government: I. Guarantees provided by the state to PSUs constitute a contingent liability, not a direct debt. II. If a PSU defaults on a guaranteed loan, the liability to repay falls on the State Government. III. The FRBM Act places no limits or regulations on the quantum of guarantees the state can provide. Which of the above statement(s) is/are correct?
Explanation
Guarantees given to PSUs are contingent liabilities, and if a PSU defaults the State has to repay. The FRBM Act does regulate the amount of guarantees, so III is wrong.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q68. Match the types of debt/liabilities of the Rajasthan government (List I) with their sources or instruments (List II):
Liability Type
Source/Instrument
A. Market Borrowings
i. Block loans for state plan schemes
B. Public Account Liabilities
ii. State Development Loans (SDLs)
C. Loans from Centre
iii. Guarantees given to State Electricity Boards
D. Contingent Liabilities
iv. State Provident Funds and Reserve Funds
Explanation
Market borrowings are State Development Loans, public account liabilities are provident and reserve funds, loans from the Centre include block loans for plan schemes and contingent liabilities are guarantees given to State Electricity Boards. This gives A-ii, B-iv, C-i, D-iii.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q69. Which Article of the Indian Constitution provides for the constitution of a State Finance Commission in Rajasthan to review the financial position of Panchayats and Municipalities?
Explanation
Articles 243-I and 243-Y provide for the State Finance Commission to review the financial position of Panchayats and Municipalities.
RAS PrelimsRajasthan Economy · Macro Overview of Rajasthan Economy and State Budget
Q70. What is the primary cause that necessitated the establishment of the Rajasthan State Finance Commission following the 73rd and 74th Constitutional Amendments?
Explanation
The State Finance Commission was set up after the 73rd and 74th Amendments to provide a mechanism for transferring revenues to local bodies.
Answer key for these questions
Q
Correct answer
61
(a) Both A and R are true and R is the correct explanation of A.
62
(a) Prohibition of all borrowing during disasters
63
(b) Centre’s consent for borrowing under Article 293(3)
64
(b) Market loans, financial borrowings, and securities
65
(b) Internal Debt (Market Borrowings), Public Account Liabilities, Loans from the Centre
66
(a) Only Statement I
67
(a) I and II
68
(a) A-ii, B-iv, C-i, D-iii
69
(b) Article 243-I and 243-Y
70
(d) Mechanism for transferring revenues to local bodies
Key facts from Rajasthan Economy
The RPSC syllabus lists the economy of Rajasthan as the second part of the Economy paper.
Many questions ask for a Rajasthan-specific fact: a scheme, a year, a district or an institution.
The State budget chapter tests terms such as revenue deficit and fiscal deficit through the FRBM Act and the State’s debt.
Infrastructure chapters cover solar and wind energy, DISCOM finances, highways, the DMIC and the Jaipur Metro.
The national economy chapters are on the Indian Economy page.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Rajasthan Economy?
This page has 721 practice MCQs on Rajasthan Economy. Each has the correct answer, and most have an explanation.
Which chapters does the Rajasthan economy set cover?
Eleven chapters: macro overview and State budget; agriculture; industry; the service sector; energy infrastructure; transportation and communication; rural development and Panchayati Raj; State Finance Commission and fiscal devolution; education; health; and the major welfare schemes of the Rajasthan Government.
Is the Rajasthan economy in the RAS Prelims syllabus?
Yes. RPSC lists the economy of Rajasthan as the second part of the Economy paper, after economic concepts and the Indian economy, so both parts are examined in the same paper.
How can I prepare the Rajasthan economy chapters?
Keep a list of schemes with their year, objective and target group, and a list of district-wise crops and industries. Attempt each chapter, read the explanation of every miss and revise the list a few days later.
