Foreign Currency Borrowings

Question 1

Budget 2019-20, the Finance Minister announced that the government would start
raising a part of its gross borrowing programme via sovereign bonds in external markets in external currencies. True or false?

Answer 1

False, because it was not taken further.

Question 2

Indian govt borrowing in foreign country would-
Also, not taken as it would subjugate India’s interests and depreciation of rupee would make it more expensive

Govt has ONLY issued bonds in domestic markets so far.

Answer 2

Address shallowness of the bond market 
Reduce the crowding out effect 
Less expensive loans
Financial discipline on govts
Create benchmark for Indian companies to borrow abroad

Question 3

Sovereign bonds can be denominated in

Answer 3

Both rupee and foreign currency

Question 4

FC second report for __ due on __

Answer 4

2021-26, Oct 30, 2020

Question 5

FC in article__ and a ___ body.

Redistributes only __

Answer 5

280
Quasi judicial body
Net proceeds of taxes

Question 6

Background- reforms introduced- closure of the
Planning Commission and its replacement by NITI Aayog;
removal of distinction between Non-Plan and Plan expenditure;
introduction of GST and New FRBM architecture with debt and fiscal deficit path.

Will review ___

Study- New India 2022

Answer 6

Revenue deficit grants to states and impact of GST and abolition of Cesses

Question 7

• 42 to __
• Reintroduced Performance based incentives like- ___ based on ___ and ___
• Rationalise ____
• Centre and states to FULLY disclose their__
• Enhanced devolution to __
• Income distance- difference between

Answer 7

41 coz J&K
Demographic performance based on the TFR
Tax effort
Centrally sponsored schemes 
Off budget borrowings
Local bodies
PER capita SGDP and highest PER capita SGDP state