Read the following statements and choose the CORRECT after Indian Railway…
2018
Read the following statements and choose the CORRECT after Indian Railway Budget - General Budget merger.
The huge revenue deficit of Railways was transferred from Railways to the Union Ministry of Finance.
Railways continued to operate as a commercial undertaking under a government department and retained functional autonomy.
Railways continued to pay the Finance Ministry dividend on Capital at Charge of Railways
Railways continued to raise resources from the market through the process of Extra Budgetary Resources for project finance
- A.
1 True, 2 False, 3 True, 4 True
- B.
1 True, 2 True, 3 False, 4 True
- C.
1 False, 2 False, 3 False, 4 True
- D.
1 False, 2 False, 3 True, 4 True
Attempted by 1 students.
Show answer & explanation
Correct answer: B
After the Railway Budget–General Budget merger (announced in 2016 and implemented from Budget 2017-18):
-Railways' revenue deficit was effectively borne by the Central Government through budgetary support and merger arrangements. → True
-Indian Railways continued to function as a commercial undertaking under the Government while retaining operational autonomy. → True
-Railways continued to pay dividend on Capital-at-Charge to the Finance Ministry. → False
-One of the major outcomes of the merger was the abolition of the dividend payment by Railways to the Central Government.
-Railways continued to raise Extra Budgetary Resources (EBR) from the market for project financing. → True
Therefore, the correct combination is:
1 True, 2 True, 3 False, 4 True