Statement 1 is not correct, 2 and 3 are correct.
Chief Economic Advisor (CEA)
• The CEA reports to the Finance Minister of India. Hence statement 1 is not correct.
• The post is equivalent to Secretary in India. Hence statement 2 is correct.
• The CEA is the head of the Department of Economic Affairs that operates under Ministry of Finance. Hence statement 3 is correct.
• Dr Manmohan Singh was the CEA to Indira Gandhi between 1972 and 1976
• Renowned economist JJ Anjaria (1908-70), who co-authored the classic text on Indian agricultural economics, ‘The Indian Rural Problem’, was the first Chief Economic Advisor of India.
PM Economic Advisory Council: He is a non-constitutional, non-statutory, independent body constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.

Only statement 2 is correct, 1 and 3 are not correct.
National Asset Reconstruction Company Ltd (NARCL)
• Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was announced in the Budget for 2021-22.
• The plan is to create a bad bank to house bad loans of ₹500 crore and above. Hence statement 1 is not correct.
• In structure, it will contain an asset reconstruction company (ARC) and an asset management company (AMC) to manage and recover dud assets. Hence statement 2 is correct
• The new entity is being created in collaboration with both public and private sector banks.
• Majority-owned by state-owned banks, the NARCL will be assisted by the India Debt Resolution Company Ltd (IDRCL), in turn majority-owned by private banks, in resolution process in the form of a Principal-Agent basis.
• NARCL has been incorporated under the Companies Act and has applied to the Reserve Bank of India for a license as an Asset Reconstruction Company (ARC). Hence statement 3 is not correct.
Note: Asset Reconstruction Company (ARC)
• The asset reconstruction companies or ARCs are registered under the RBI.
• The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 provides the legal basis for the setting up of ARCs in India.

Statements 2 and 3 are correct, 1 and 4 are not correct.
Nal Se Jal Yojana
• The scheme was launched in 2019 under the aegis of Ministry of Jal Shakti. Hence statement 1 is not correct.
• It is a component of the government’s Jal Jivan Mission. Hence statement 2 is correct.
• The scheme is based on a unique model where paani samitis (water committee) comprising villagers will decide what they will pay for the water they consume. Hence statement 3 is correct.
• The tariff they fix will not be the same for everyone in the village. Those who have large households will pay more, while poor households or households where there is no earning member, will be exempted. Hence statement 4 is not correct.

Statements 1 and 2 are correct, 3 is not correct.
Virtual digital assets
The Finance Bill, 2022 has for the first time provided a definition for crypto assets. According to the definition, any information or code or number or token generated through cryptographic means or otherwise providing a digital representation of value exchanged with or without consideration that can be transferred, stored, or traded electronically can be defined as “virtual digital assets”. Hence statement 3 is not correct.
The Finance Minister has proposed that transfer of any virtual/ cryptocurrency asset will be taxed at 30%. Hence statement 1 is correct.
No deduction except the cost of acquisition will be allowed, and no loss in transaction will be allowed to be carried forward. Hence statement 2 is correct.
In order to monitor the money trail in crypto deals, a 1% Tax deduction at Source (TDS) will be imposed on every transaction using cryptocurrencies.
Further, gifts in virtual digital assets would be taxed in the hands of the recipient.

Only statement 1 is correct, 2 and 3 are not correct.
 
Saffron Bowl Project
• The saffron bowl of India, so far confined to parts of Kashmir, has now spread its wings to parts of the North East through the focused efforts of the NECTAR. Hence statement 1 is not correct.
• Pampore region, commonly known as Saffron bowl of Kashmir, is the main contributor to saffron production. Other districts producing saffron are Budgam, Srinagar, and Kishtwar districts. Hence statement 2 is correct.
• In 2020, the Kashmir saffron got Geographical Indication (GI) tag status. Hence statement 3 is not correct.
• However, the saffron bowl which was so far confined to Kashmir is being expanded to the Northeast as the North East Centre for Technology Application and Reach (NECTAR) has launched the Saffron Bowl Project to explore the feasibility of growing saffron in the region with the same quality.

Statement 1 and 3 are correct, 2 is not correct.
One District One Product Scheme (ODOP)
• The scheme comes under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. Hence statement 1 is correct.
• It is aimed at promoting a competitive and staple product from a specific area to push sales and improve the standard of living of the local population.
• It is basically a Japanese business development concept. Hence statement 2 is not correct.
• In India, Uttar Pradesh was the first state to launch the concept in 2018. Hence statement 3 is not correct.

Only statement 1 is correct.
Vande Bharat
• Dubbed as Train 18, the Vande Bharat train is an indigenously designed and manufactured self-propelled “engineless” train. Hence statement 1 is correct.
• In 2019, the first Vande Bharat was manufactured by the Integral Coach Factory (ICF), Chennai, in about 18 months as part of the ‘Make in India’ programme.
• The Vande Bharat is India’s first semi high-speed train that can achieve a maximum speed of 160 kmph. Hence statement 2 is NOT correct.
• Its faster acceleration and deceleration results in reduced journey time by 25% to 45%.
• These trains operate without a locomotive and are based on a propulsion system called distributed traction power technology, by which each car of the train set is powered.

Statements 1 and 2 are correct, 3 and 4 are not correct.
Capital Gains Tax
• It is levied on the profits made on investments. Hence statement 1 is correct.
• It covers real estate, gold, stocks, mutual funds and various other financial and non-financial assets. The rate is different for different assets. Hence statement 2 is correct.
• It is divided into long-term capital gains tax (LTCG) and short-term capital gains tax (STCG) depending on how long you have held the investment in question. Hence statement 3 is NOT correct.
Difference between Capital Gains Tax and Income Tax?
• Unlike income tax, the percentage of Capital Gains Tax does not change on the basis of your overall tax slab. For example, the LTCG tax excluding surcharge on equity is the same for gains of ₹10 lakh or ₹10 crore. Hence statement 4 is NOT correct.
• Moreover, there is also a separate set of deductions that apply to LTCG which do not apply to ordinary income.

Statement 2 and 3 are correct, 1 is not correct.
SVAMITVA Scheme
• SVAMITVA is a Central Sector Scheme of the Ministry of Panchayati Raj. Hence statement 1 not is correct.
• The scheme seeks to map residential land ownership in the rural sector using modern technology like the use of drones.
• Under the scheme, residential land in villages will be measured using drones to create a non-disputable record. Hence statement 2 is correct.
• Property card for every property in the village will be prepared by states using accurate measurements delivered by drone-mapping.
• These cards will be given to property owners and will be recognised by the land revenue records department. Hence statement 3 is not correct.
• The Scheme is implemented with the collaborative efforts of the Ministry of Panchayati Raj, State Revenue Department, State Panchayati Raj Department and Survey of India.

Statement 1 is correct, 2 is not correct.
National Economic Census
• In 1976, GoI launched a planning scheme called Economic Census and Surveys.
• It is the census of the Indian economy through counting all entrepreneurial units in the country which involved in any economic activities of either agricultural or non-agricultural sector which are engaged in production and/or distribution of goods and/or services not for the sole purpose of own consumption.
• It provides detailed information on operational and other characteristics such as number of establishments, number of persons employed, source of finance, type of ownership etc. Hence statement 1 is correct.
• This information used for micro level/ decentralized planning and to assess contribution of various sectors of the economy in the GDP.
Censuses till date
• Total seven Economic Censuses (EC) has been conducted till date (the last one being in 2019).
• In 1977 CSO conducted First economic census in collaboration with the Directorate of Economics & Statistics (DES) in the States/UTs. Hence statement 2 is not correct.
• The Second EC was carried out in 1980 followed by the Third EC in 1990. The fourth edition took place in 1998 while the fifth EC was held in 2005.

Statement 3 is correct, 1 and 2 are not correct.
Financial Stability and Development Council (FSDC)
• It is non-statutory apex council under the Ministry of Finance constituted by the Executive Order in 2010. Hence statement 1 is not correct.
• The Raghuram Rajan committee (2008) on financial sector reforms first proposed the creation of FSDC.
• It is chaired by the Union Finance Minister. Hence statement 2 is not correct.
• Its members include the heads of all Financial Sector Regulators (RBI, SEBI, and PFRDA & IRDA), Finance Secretary, Secretary of Department of Economic Affairs (DEA), Secretary of Department of Financial Services (DFS), and Chief Economic Adviser. Hence statement 3 is correct.
Functions
1. To strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development
2. To monitor macro-prudential supervision of the economy
3. To assesses the functioning of the large financial conglomerates.

Emergency Credit Line Guarantee Scheme (ECLGS)
• The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced in May 2020. Hence statement 1 is correct.
• It aims to mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors, especially Micro, Small and Medium Enterprises (MSMEs). Hence statement 2 is not correct.
• 100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company, whereas Banks and Non-Banking Financial Companies (NBFCs) provide loans. Hence statement 3 is not correct.
• The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
• No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
• Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

All the statements are not correct.
What is reverse repo normalization?
• Reverse repo normalization means the reverse repo rates will go up. Hence statement 1 is not correct.
• Over the past few months, in the face of rising inflation, several central banks across the world have either increased interest rates or signalled that they would do so soon.
• This process of normalization is aimed at curbing inflation. Hence statement 2 is not correct.
• It will not only reduce excess liquidity but also result in higher interest rates across the board in the Indian economy. Hence statement 3 is not correct.
• It thus reduces the demand for money among consumers (since it would make more sense to just keep the money in the bank) and making it costlier for businesses to borrow fresh loans. Hence statement 4 is not correct.

Only statement 1 is correct.
Parvatmala Project
• The project will be taken up on PPP mode.
• Ropeways will be a preferred ecologically sustainable alternative in place of conventional roads in difficult hilly areas. Hence statement 1 is correct.
• The idea is to improve connectivity and convenience for commuters, besides promoting tourism.
• This may also cover congested urban areas, where conventional mass transit system is not feasible.
• The Finance Minister announced that contracts for 8 ropeway projects for a length of 60 km would be awarded in 2022-23.
• States being covered: The scheme is being presently started in regions like Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir and the other North Eastern states. Hence statement 2 is not correct.

Only statements 1 and 2 are correct, 3 is not correct.
SMILE: Support for Marginalised Individuals for Livelihood and Enterprise
• This includes two sub-schemes:
1. Central Sector Scheme for Comprehensive Rehabilitation for Welfare of Transgender Persons
2. Central Sector Scheme for Comprehensive Rehabilitation of persons engaged in the act of Begging. Hence statement 1 is correct, 3 is not correct.
• The scheme strengthens and expands the reach of the Rights that give the targeted group the necessary legal protection and a promise to a secured life.
• It is an initiative of the Ministry of Social Justice and Empowerment. Hence statement 3 is correct.
• It keeps in mind the social security that is needed through multiple dimensions of identity, medical care, education, occupational opportunities and shelter.
• The Ministry has allocated Rs. 365 Crore for the scheme from 2021-22 to 2025-26.

Both statements are not correct.
Design Linked Incentive (DLI) Scheme
• It was announced in December 2021 by MeitY.
• Under this, financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design for over 5 years. Hence statement 1 is not correct.
• Aims: To create a vibrant ecosystem for Semiconductor Chip Design in the country and to promote the domestic manufacturing of semiconductors and allied devices.
• Implementation: C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme. Hence statement 2 is not correct.

Z-shaped Recovery
• It is the most-optimistic scenario in which the economy quickly rises after an economic crash.
• It makes up more than for lost ground before settling back to the normal trend-line, thus forming a Z-shaped chart.
• In this economic disruption lasts for a small period wherein more than people’s incomes, it is their ability to spend is restricted.

Statements 1 and 2 are correct, 3 and 4 are not correct.
External debt of India
• The external debt of India is the total debt the country owes to foreign creditors. Hence statement 1 is correct.
• The debtors can be the Union government, state governments, corporations or citizens of India. Hence statement 3 is not correct.
• The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.
• At end of December 2021, India’s external debt was placed at $ 566.2 billion. External Commercial borrowings remained the largest component of external debt, with a share of 38.1 per cent, followed by non-resident deposits (23.9 per cent) and short-term trade credit (18.2 per cent).
• The ratio of external debt to GDP in India varies as shown below: (Source PIB)

Year Ratio of External Debt to GDP
2017 23.4
2018 19.8
2019 20.1
2020 19.8
2021 (Provisional) 21.8

• Hence, it can be seen that India’s External Debt to GDP ratio did not increased steadily. Hence statement 4 is not correct.

Statements 1 and 2 are correct, 3 is not correct.
Long Term Repo Operations
• It is a tool under which the central bank provides one year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
• It is a mechanism to facilitate the transmission of monetary policy actions and the flow of credit to the economy. This helps in injecting liquidity in the banking system.
• The LTRO scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) operations.
• LTROs are conducted on Core Banking Solution (EKUBER) platform.
Benefits of the LTROs
• It will enhance liquidity in the banking system.
• The introduction of long-term repo operations (LTRO) will bring down the cost of funds for banks without effectively cutting deposit rates. As banks get long-term funds at lower rates, their cost of funds falls. In turn, they reduce interest rates for borrowers.
• It is a measure that is expected to bring down short-term rates and also boost investment in corporate bonds.
• LTRO helped RBI ensure that banks reduce (not increase) their marginal cost of funds-based lending rate, without reducing policy rates. Hence statement 3 is not correct.

Statements 2 is not correct, 1 and 3 are correct.
Mid-Day Meal Scheme
• The Midday meal scheme (under the Ministry of Education) is a centrally sponsored scheme which was launched in 1995. Hence statement 1 is correct.
• It is the world’s largest school meal programme aimed to attain the goal of universalization of primary education.
• Provides cooked meals to every child within the age group of six to fourteen years studying in classes I to VIII who enrolls and attends the school. Hence statement 2 is not correct.
• Its objective is to address hunger and malnutrition, increase enrolment and attendance in school, improve socialisation among castes, provide employment at grassroot level especially to women.
• AGMARK quality items are procured, tasting of meals by two or three adult members of the school management committee.
• If the Mid-Day Meal is not provided in school on any school day due to non-availability of food grains or any other reason, the State Government shall pay food security allowance by 15th of the succeeding month. Hence statement 3 is correct.