PT06 - Polity and Economy - Model Answer

1. A
The President can declare emergency only after receiving a written
recommendation from the cabinet. This safeguard was introduced by the
44th Amendment Act of 1978 to eliminate any possibility of Prime
Minister alone taking a decision in this regard.
The proclamation must be approved by both the houses of Parliament
within one month from the date of issue. However, if the proclamation of
emergency is issued at a time when the Lok Sabha has been dissolved or
dissolution of the Lok Sabha takes place during the period of one month
without approving the proclamation, then the proclamation survives until
30 days from the first sitting of the Lok Sabha after its reconstitution,
provided Rajya Sabha has approved it meantime.
A proclamation of emergency may be revoked by the President any time
by a subsequent proclamation. Such a proclamation does not require the
parliamentary approval. The President must revoke a proclamation if the
Lok Sabha passes a resolution disapproving its continuation .this was
also introduced by the 44th Amendment Act of 1978.
2. B
Statement 1 >> Incorrect
According to the 44th Amendment Act of 1978, six fundamental rights
under Article 19 can be suspended only when National Emergency is
declared on the ground of war or external aggression and not on the
grounds of armed rebellion. It restricted the scope of Article 358.
Statement 2 >> Correct
Similarly, the 44 Amendment act made it clear that protection in respect
of conviction of offenses (Article 20) and right to life and personal liberty
(Article 21) remain enforceable even when emergency is in operation. It
restricted the scope of Article 359.
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 3. D
Statement 1, 2 >> Incorrect
Neither the Lok Sabha nor the State Legislative can be dissolved due to
the proclamation of National Emergency. During a National Emergency,
the Parliament becomes empowered to make laws on any subject
mentioned in the State List. Although the legislative power of a state
legislature is not suspended, it becomes subject to the overriding power
of the Parliament. Thus, the normal distribution of the legislative powers
between the Centre and states is suspended, though the states
Legislatures are not suspended.
Statement 3>>Incorrect
While a proclamation of National Emergency is in operation, the life of
the Lok Sabha may be extended beyond its normal term (five years) by a
law of Parliament for one year at a time (for any length of time). However,
this extension cannot continue beyond a period of six months after the
emergency has ceased to operate. Similarly, the Parliament may extend
the normal tenure of a state legislative assembly (five years) by one year
each time (for any length of time) during a national emergency, subject to
a maximum period of six months after the Emergency has ceased to
operate. But it is not a necessary consequence of the proclamation of
National emergency
NB: Question is to identify the incorrect statements, which are 1, 2 and 3
4. C
Statement 1 >> incorrect
The inability of a state government to prove its majority in the floor of the
house results doesn t result in automatic application of President s
rule. The President s Rule can be proclaimed under Article 356 on two
grounds ”one mentioned in Article 356 itself and another in Article 365:
Article 356 empowers the President to issue a proclamation, if he is
satisfied that a situation has arisen in which the government of a state
cannot be carried on in accordance with the provisions of the
Constitution.Article 365 says that whenever a state fails to comply with
or to give effect to any direction from the Centre, it will be lawful for the
president to hold that a situation has arisen in which the government of
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 the state cannot be carried on in accordance with the provisions of the
Constitution
Statement 2 >> correct
The President acquires the following extraordinary powers when the
Presidents Rule is imposed in a state: He can take up the functions of
the state government and powers vested in the governor or any other
executive authority in the state. He can declare that the powers of the
state legislature are to be exercised by the Parliament. He can take all
other necessary steps including the suspension of the constitutional
provisions relating to anybody or authority in the state. Therefore,
when the Presidents Rule is imposed in a state, the President dismisses
the state council of ministers headed by the chief minister .The state
legislature is either suspended or dissolved. The president administers
the state through the governor and the Parliament makes laws for the
state. In brief, the executive and legislative powers of the state are
assumed by the Centre
Statement 3 >> incorrect
The 38th Amendment Act of 1975 made the satisfaction of the President
in invoking Article 356 final and conclusive which could not be
challenged in any court on any ground. But, this provision was
subsequently deleted by the   44th Amendment Act of 1978 implying
that the satisfaction of the President is not beyond judicial review. In
SR Bommai vs Union of India case, the Supreme Court held that the
proclamation under Article 356(1) is not immune from judicial review.
The validity of the Proclamation issued by the President under Article
356(1) is judicially reviewable to the extent of examining whether it was
issued on the basis of any material at all or whether the material was
relevant or whether the Proclamation was issued in the malafide exercise
of the power. The Supreme Court or the High court can strike down the
proclamation if it is found to be malafide or based on wholly irrelevant or
extraneous grounds
Approach
Questions like these in polity can be approached easily if you follow the
newspaper regularly. A recent example where Supreme Court reinstated
the government of Arunachal Pradesh which was dismissed when

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 president’s rule was imposed in the state. This helps us to eliminate 3
and deduce 2 as right. Using this we can reach the answer (C).
5. C
Statement 1 >> Correct
During a national emergency, the Parliament becomes empowered to
make laws on any subject mentioned in the State List. However, the
legislative power of a state legislature is not suspended, it merely
becomes subject to the overriding power of the Parliament. Thus, the
normal distribution of the legislative powers between the Centre and
states is suspended, though the state legislatures are not suspended.
Statement 2 >> Correct
During National Emergency, the Parliament may extend the normal
tenure of a state legislative assembly (five years) by one year each time
(for any length of time) during a national emergency, subject to a
maximum period of six months after the Emergency has ceased to
operate.
6. D
Statement 1 >> Incorrect
Article 360 empowers the president to proclaim a Financial Emergency if
he is satisfied   that a situation has arisen due to which the financial
stability or credit of India or any part   of its territory is threatened
Governor does not have any such powers
Statement 2 >> Incorrect
Consent of Governor is not required for the President to proclaim
Presidents Rule in a state. The Presidents Rule can be proclaimed under
Article 356 on two grounds.one   mentioned in Article 356 itself and
another in Article 365. Article 356 empowers the President to issue a
proclamation, if he is satisfied that a   situation has arisen in which the
government of a state cannot be carried on in   accordance with the
provisions of the Constitution. Notably, the president can act   either on
a report of the governor of the state or otherwise too (I e, even without the
governors report. Article 365 says that whenever a state fails to comply
with or to give effect to any direction   from the Centre, it will be lawful
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 for the president to hold that a situation has arisen in   which the
government of the state cannot be carried on in accordance with the
provisions   of the Constitution.
7. C
Statement 1 >> correct
National Emergency: Article 352  (1) - If the President is satisfied that a
grave emergency exists whereby the security of India or of any part of the
territory thereof is threatened, whether by war or external aggression or
armed rebellion, he may, by Proclamation, made a declaration to that
effect in respect of the whole of India or of such part of the territory
thereof as may be specified in the Proclamation Explanation. A
Proclamation of Emergency declaring that the security of India or any
part of the territory thereof is threatened by war or by external
aggression or by armed rebellion may be made before the actual
occurrence of war or of any such aggression or rebellion, if the President
is satisfied that there is imminent danger thereof. Constitutional
Emergency in States: Article 356  - If the president is satisfied on receipt
of a report from the governor or otherwise that a situation has arisen in
which the Government in a state cannot be carried in accordance with
the provisions of the Constitution, he / she is empowered to proclaim an
emergency
Statement 2 >> correct
In S.R. Bommai v. Union of India  (1994) the Supreme Court held that
dismissal of state government is subject to judicial review  and the court
could revive the dissolved state assembly if the dissolution was found to
be judiciary indefensible.
8. A
Statement 1 >> Incorrect
Under Article 352, the President can declare a national emergency when
the security of India or a part of it is threatened by war or external
aggression or armed rebellion. The president can declare a national
emergency even before the actual occurrence of war or external
aggression or armed rebellion,   if he is satisfied that there is an
imminent danger.
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 Statement 2 >> Correct
A proclamation of national emergency may be applicable to the entire
country or only a part of it. The 42nd Amendment Act of 1976   enabled
the president to limit the operation of a National Emergency to a specified
part of India. When a national emergency is declared on the ground of
war or external aggression, it is known as External Emergency. On the
other hand, when it is declared on the ground of armed rebellion, it is
known as Internal Emergency.
Statement 3 >> Incorrect
Originally, the Constitution mentioned internal disturbance as the third
ground for the proclamation of a National Emergency. The 44th
Amendment Act of 1978 substituted the words armed rebellion for
˜internal disturbance to eliminate the vagueness in the term The
President, however, can proclaim a national emergency only after
receiving a written recommendation from the cabinet .This means that
the emergency can be declared only on the concurrence of the cabinet
and not merely on the advice of the prime minister.
9. D
Statement 1 >> correct
A proclamation imposing Presidents Rule must be approved by both the
Houses of Parliament within two months from the date of its issue.
Similar in case of Financial emergency also. However, in case of the
National emergency the proclamation must be   approved by both houses
within 1 month from the date of its issue.
Statement 2 >> Correct
If approved by both the Houses of Parliament, the Presidents Rule
continues for six months. It can be extended for a maximum period of
three years with the approval of the Parliament, every six months. In case
of financial emergency, repeated approval by parliament is not needed for
continuation. The Financial Emergency continues indefinitely till it is
revoked, there is no maximum period prescribed for its operation. In case
of National emergency, no maximum period prescribed for its operation.
Statement 3 >> Correct

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 Every resolution approving the proclamation of Presidents Rule or its
continuation can be passed by either House of Parliament only by a
simple majority, that is, a majority of the members of that House present
and voting . In case of National emergency, resolution approving the
continuation of proclamation must be passed by either house of
parliament by a special majority. In case of Financial emergency, No
parliamentary approval needed.
10. B
Articles 358 and 359 describe the effect of a National Emergency on the
Fundamental Rights. Article 358 deals with the suspension of the
Fundamental Rights guaranteed by   Article 19 , while Article 359 deals
with the suspension of other Fundamental Rights (except those
guaranteed by Articles 20 and 21). According to Article 358, when a
proclamation of national emergency is made, the   six Fundamental
Rights under Article 19 are automatically suspended. No separate order
for their suspension is required Article 359 authorises the president to
suspend the right to move any court for the enforcement of Fundamental
Rights during a National Emergency. This means that under Article 359,
  the Fundamental Rights as such are not suspended, but only their
enforcement. The 44th Amendment Act of 1978 restricted the scope of
Article 359 .President cannot suspend the right to move the Court for the
enforcement   of fundamental rights guaranteed by Articles 20 to 21 . the
right to protection in respect of conviction for offences (Article 20) and the
right to life and personal liberty (Article 21) remain enforceable even
during emergency.
11. C
69th Constitutional amendment act introduced Article 239 AA, which  
has provided for special provisions with respect to Delhi.
Statement 1 >> Incorrect
The Chief Minister shall be appointed by the President and the other
Ministers shall be appointed by the President on the advice of the Chief
Minister and the Ministers shall hold office during the pleasure of the
President.
Statement 2 >> Incorrect

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 In the case of   difference of opinion   between the Lieutenant Governor
and his Ministers on any matter, the Lieutenant Governor shall  refer it
to the President   for decision and act according to the decision given
thereon by the President and pending such decision it shall be competent
for the Lieutenant Governor in any case where the matter, in his opinion,
is so urgent that it is necessary for him to take immediate action, to take
such action or to give such direction in the matter as he deems
necessary.
Statement 3 >> Correct
President takes over the administration when he is satisfied on receipt of
a report from the Lieutenant Governor,that the constitutional machinery
has failed. The President may by order suspend the operation of any
provision or article 239 AA or all or any of the provisions of any law made
in pursuance of that article for such period and subject to such
conditions as may be specified in such law and make such incidental and
consequential provisions as may appear to him to be necessary or
expedient for administering the National Capital Territory in accordance
with the provisions of article 239 and article 239 AA.
12. D
Statement 1 and Statement 2 >> Incorrect
The Territory of India is a wider expression than the Union of India
because Union of India includes only states   while Territory of India
includes not only the states but also union territories and territories that
may be acquired   by the Government of India at any future time.The
states are the members of the federal system and share a distribution of
powers with the Centre. The union territories and the acquired
territories, on the other hand, are directly administered by the Central
government.
13. C
Minimum Support Price (MSP) is a form of market intervention by the
Government of India to insure agricultural producers against any sharp
fall in farm prices. The minimum support prices are announced by the
Government of India at the beginning of the sowing season for certain
crops on the basis of the recommendations of the Commission for
Agricultural Costs and Prices (CACP).
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 MSP is price fixed by Government of India to protect the producer –
farmers against excessive fall in price during bumper production years.
MSP is declared for around 24 crops.  
The Cabinet Committee of Economic Affairs announces MSP for various
crops at the beginning of each sowing season based on the
recommendations of the Commission for Agricultural Costs and Prices
(CACP). The CACP takes into account demand and supply, the cost of
production and price trends in the market among other things when
fixing MSPs.
What is Procurement price? Procurement prices were the prices of kharif
and rabi cereals at which the grain was to be domestically procured by
public agencies (like the FCI) for release through PDS. It was announced
soon after harvest began. Normally procurement price was lower than the
open market price and higher than the MSP.
14. A
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated
with the vision of achieving convergence of investments in irrigation at
the field level, extending the coverage of irrigation ˜Har Khet ko pani
and improving water use efficiency ˜More crop per drop'.
Statement 1 >> Correct
Har Khet ko Pani seeks to expand cultivable area under assured
irrigation and creation of new water sources. It also promotes Command
area development and creation and rejuvenation of traditional water
storage systems.
Statement 2 >> Correct
The National Bank of Agriculture and Rural Development (NABARD) will
raise in phases over Rs 77,000 crore from market to fund around 100
prioritised irrigation projects, including 56 in drought-prone areas, under
the Pradhan Mantri Krishi Sinchayee Yojana (PMKYS) over the next four
years
Statement 3 >> Incorrect

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 The Accelerated Irrigation Benefits Programme (AIBP) component of
PMKSY seeks faster completion and to provide Central Assistance to
major/medium irrigation projects in the country
15. C
Statement 1 >> Correct
Weather shocks have a much greater effect on unirrigated areas (defined
as districts where less than 50 percent of cropped area is irrigated)
compared to irrigated areas. These extreme shocks have highly divergent
effects between unirrigated and irrigated areas (and consequently
between crops that are dependent on rainfall), almost twice as high in the
former compared with the latter.
Statement 2 >> Correct
Indian agriculture is more vulnerable to rainfall changes than
temperature changes.
16. D
Option (a) >> Helps moderate the price Hoarding is the practice of
obtaining and holding grains or other products to create artificial
scarcity, thus reducing the supply, to increase the price. When hoarding
is prevented, it releases more grains into the market increasing the net
supply of grains. As supply increases, the price comes down.
Option (b) >> Helps moderate the price When higher MSP is announced
for the crop, it incentivises more farmers to cultivate that particular crop
and bring more land under the cultivation of that crop. As a result,
supply increases and price comes down. In fact, higher MSP is one of the
strategies used by the government to lower the price of pulses.
Option (C) >> Helps moderate the price Buffer stock refers to a reserve of
a commodity that is used to offset price fluctuations and unforeseen
emergencies. Releasing the buffer stock increases the supply, thereby
moderating the price.
Option (D) >> doesn’t help moderate the price Imposing import duty on
the product makes the cost of the imported crop higher than before. This
could also disincentives foreign producers to supply crop to the country.
As a result, the net supply of the crop is also lowered, raising the price.
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 17. C
Statement 1 >> incorrect.
Crop Diversification Programme (CDP) is a sub scheme of Rashtriya
Krishi Vikas Yojana (RKVY)
Statement 2 >> incorrect.
Statement 3 >> correct.
Crops Diversification Programme is being implemented by the
Government in original green revolution states viz. Punjab, Haryana and
in Western UP to diversify paddy area towards less water requiring crops
like oilseeds, pulses, coarse cereal, agroforestry and shifting of tobacco
farmers to alternative crops/cropping system in tobacco growing States
viz. Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra, Odisha,
Tamil Nadu, Telangana, Uttar Pradesh and West Bengal.
18. A
Varietal Replacement Rate is the rate of replacement of old varieties in
seed chain with new and hybrid varieties. Varietal replacement is one of
the most effective ways of raising yield. The rate of crop varietal
replacement is an important measure of the impacts of plant breeding
programmes, the degree of varietal diversification over time, and the
potential exposure to disease epidemics due to breakdown in disease
resistance of older varieties.
19. B
Statement 1 >> correct
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a yield index based crop
insurance.
Statement 2 >> correct
PMFBY provides comprehensive coverage of risks from pre-sowing to post
harvest against natural non-preventable risks.
Statement 3 >> Incorrect
The insurance premium is to be paid to companies on actuarial basis,
with however very low share to be paid by farmers on a uniform basis
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 across the country (2% & 1.5% for food & oilseed crops for Kharif & Rabi
seasons respectively and 5% for annual commercial/horticultural crops)
and balance premium to be paid upfront and   shared equally by Central
and State Governments. Index-based insurance: Insurance pay-outs
are pegged to easily measured environmental conditions, or an index,
that is closely related to agricultural production losses. Possible indices
include rainfall, yields, or vegetation levels measured by satellites. When
an index exceeds a certain threshold, farmers receive a fast, efficient
pay-out, in some cases delivered via mobile phones.

20. B
The Budget announced plans to develop and upgrade existing 22,000
rural haats into Gramin Agricultural Markets (GrAMs) to take care of the
interests of more than 86% small and marginal farmers.
Statement 1 >> Incorrect
These GrAMs will be linked to the e-NAM platform but exempt from the
APMC regulations. APMC acts are put forward by the state and have a
number of lacunae that restrict the farmer from entering into direct
contract with any processor/ manufacturer/consumer. The e-NAM and
GrAMs on the contrary try to facilitate direct sale of farm produce, thus
exempt from APMC regulations.
Statement 2 >> Correct
They provide farmers with facility to make direct sale to consumers to cut
down on intermediaries and ensure better remunerative prices.
21. D
Kisan Credit Card scheme was introduced in 1998 with the aim to
provide adequate and timely short-term credit needs of farmers during
the cropping season.
Option (A) >> Correct
Joint liability groups or   self-help groups   (SHGs) of farmers are eligible
to apply for Kisan Credit Cards
Option (B) >> Correct

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 The scheme aims at providing adequate and timely cred it for the
comprehensive credit requirements of farmers under single window for
their cultivation and other needs as indicated below: To meet the short
term credit requirements for cultivation of crops Post harvest   expenses
Produce Marketing loan Consumption requirements of farmer household
Working capital for maintenance of farm assets, activities allied to
agriculture, like dairy animals, inland fishery and also working capital
required for floriculture, horticulture etc. Investment credit requirement
for agriculture and allied activities like pump sets, sprayers, dairy
animals, floriculture, horticulture etc
Option (C) >> Correct
NABARD set-up a   Special Project Unit- Kisan Credit Card   (SPU-KCC)
with a mandate for encouraging cooperative banks and Regional Rural
Banks across the country to issue   Rupay KCC debit cards . The
overarching goal is to develop cash-less eco system by enabling the
farming community to avail all new banking facilities at par with urban
area of the country.
Option (D) >> Incorrect
Eligibility for KCC includes: All farmers-individuals/Joint borrowers who
are owner cultivators. Tenant   farmers, Oral lessees and Share
Croppers etc. SHGs or Joint Liability Groups of farmers including tenant
farmers, share croppers etc.
22. D
Small Farmers Agribusiness Consortium   (SFAC) is an   Autonomous
Society   under the   Societies Registration Act   promoted by Ministry of
Agriculture, Cooperation and Farmers Welfare, Government of India.
The Society is also registered as   Non-Banking Financial Institution   by
Reserve Bank of India.
Statement 1 >> Correct
Venture Capital Assistance Scheme   by the SFAC is financial support in
the form of an   interest free loan   provided by SFAC to qualifying
projects to meet shortfall in the capital requirement for implementation of
the project. It would be implemented in close association with

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 Nationalized Banks, SBI and its subsidiaries and other commercial
banks.
Statement 2 >> Correct
SFAC helps the formation and growth of   Farmer Producer Organizations
  (FPOs) / Farmer Producer Companies (FPCs). It also helps to improve
the   availability of working capital   and development of business
activities of FPOs/FPCs through Equity Grant and Credit Guarantee
Fund Scheme.
Statement 3 >> Correct
Small Farmers Agribusiness Consortium (SFAC) is designated as Lead
Agency, to roll out the NAM (National Agriculture Market   Scheme) in
partnership with a Strategic Partner (SP), which will be responsible for
developing, running and maintaining the proposed e-marketing platform.
National Agriculture Market (NAM) is envisaged as a   pan-India
electronic trading portal   which seeks to   network the existing APMC  
and other market yards to create a unified national market for
agricultural commodities. NAM will create a national network of physical
mandis which can be accessed online.
23. B
Statement 1 >> Incorrect
Agricultural and Processed Food Products Export Development Authority
  (APEDA) is a   statutory   body established by the Government of India
under the   Agricultural and Processed Food Products Export
Development Authority Act   passed by the Parliament. However, it is an
export promotion organisation under the Union Ministry of Commerce
and Industry.
Statement 2 >> Correct
APEDA is mandated with responsibility of   promotion and development
of the export   of its scheduled products which includes all   agricultural
products. Other responsibilities include: Fixing of   standards and
specifications   for the scheduled products for the purpose of exports.
Registration   of persons as exporters of the scheduled products.
Carrying out   inspection   of meat and meat products in slaughter

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 houses, processing plants, storage premises etc. Training   in various
aspects of the industries connected with the scheduled products etc.
24. C
The   Fifth Schedule   of the Constitution deals with the administration
and control of scheduled areas and scheduled tribes in   any state except
the four states   of Assam, Meghalaya, Tripura and Mizoram. The  
Sixth Schedule   of the Constitution, on the other hand, deals with the
administration of the tribal areas in the four north-eastern states of  
Assam, Meghalaya, Tripura and Mizoram.
Statement 1 >> Correct
According to the Schedule 5, the   President   is empowered to declare an
area to be a   scheduled area. On the other hand, it is the   Governor  
who is empowered to organise and re-organise the autonomous districts
in the tribal areas under   Schedule 6 .
Statement 2 >> Incorrect
The executive power of a state extends to the scheduled areas therein.
But the Governor has a special responsibility regarding such areas. He
has to submit a report to the President regarding the administration of
such areas, annually or whenever so required by the President. The  
executive power of the Centre   extends to   giving directions to the states
  regarding the administration of such areas.
Statement 3 >> Incorrect
Tribal Advisory Councils   are established in states having   Scheduled
areas   under Schedule 5 to advise on welfare and advancement of the
scheduled tribes. It is to consist of 20 members, three-fourths of whom
are to be the representatives of the scheduled tribes in the state
legislative assembly. A similar council can also be established in   a state
having scheduled tribes but not scheduled areas   therein, if the
President so directs.
Statement 4 >> Correct
The tribal areas in the four states of Assam, Meghalaya, Tripura and
Mizoram have been constituted as   autonomous districts. If there are
different tribes in an autonomous district, the governor can divide the
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 district into several   autonomous regions. Each autonomous district has
a   district council   and autonomous regions have   regional councils.
The district and regional councils can   make laws   on certain specified
matters like land, forests, canal water, shifting cultivation, village
administration, and inheritance of property, marriage and divorce, social
customs and so on. They can constitute   village councils or courts for
trial   of suits and cases between the tribes. They are also empowered to  
assess and collect land revenue   and to impose certain specified taxes.
25. D
Statement 1 >> Incorrect
It is the governor and not the President who is empowered to re-organise
(increase or decrease area of) autonomous districts.
Statement 2 >> Incorrect
It is district and regional councils (Not Governor) that can constitute
village courts or village councils for trial of cases between tribes. The
Governor has the power to specify the jurisdiction of high court over
these cases

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