UPSC Prelims Practice Questions — States contribute disproportionately more to welfare schemes

Q1. With reference to the findings on India's public social-sector expenditure highlighted in the 'Realising Rights' handbook (2026), consider the following statements. Which of the above is/are NOT correct?

  1. State governments now account for nearly 90% of India's public social-sector expenditure.
  2. The Union government's share of social-sector spending fell from 23.6% in 2008-09 to 8.5% in 2024-25.
  3. Governments together spend about 7% of GDP on the welfare sectors covered.
  4. Public spending on education has risen above the 6% of GDP policy target.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 3 and 4

Q2. According to the 'Realising Rights' handbook, by approximately how many percentage points did the Union government's share of public social-sector expenditure fall between 2008-09 and 2024-25?

  • A. About 8 percentage points
  • B. About 15 percentage points
  • C. About 23 percentage points
  • D. About 32 percentage points

Q3. 'Realising Rights: A Handbook of Welfare in India', released in 2026, was brought out by which one of the following institutions?

  • A. Centre for the Study of the Indian Economy, Azim Premji University
  • B. National Institute of Public Finance and Policy
  • C. Centre for Policy Research
  • D. Institute for Human Development

Q4. Consider the following statements about the 'Realising Rights: A Handbook of Welfare in India' (2026). Which of the statements given above is/are correct?

  1. It was published by the Centre for the Study of the Indian Economy at Azim Premji University.
  2. It brings together 27 authors across 18 chapters.
  3. It draws exclusively on Union Budget documents and excludes all State-level and RBI data.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In analyses of India's changing welfare model, the shift 'from rights-holders to beneficiaries' most precisely refers to which one of the following?

  • A. A move from statutory, justiciable entitlements towards targeted benefits delivered largely through cash transfers and digital platforms
  • B. A move away from cash transfers back towards in-kind food and guaranteed employment
  • C. A transfer of responsibility for implementing welfare schemes from the States to the Union government
  • D. The replacement of all means-tested schemes by a fully universal basic income

Q6. With reference to the cash-transfer/Direct Benefit Transfer model of welfare delivery discussed in recent analyses, consider the following statements. Which of the above is/are NOT correct?

  1. It relies on digital infrastructure such as Aadhaar-linked bank accounts.
  2. It tends to emphasise metrics such as coverage, leakage and speed of delivery.
  3. Every cash-transfer welfare scheme in India is a statutory right enforceable in a court of law.
  4. Analysts have flagged exclusion risks arising from Aadhaar verification and e-KYC requirements.
  • A. 1 and 2
  • B. 2 and 4
  • C. 3 only
  • D. 1 and 4

Q7. By how many percentage points did the 14th Finance Commission raise the States' share in the divisible pool of central taxes compared with the share recommended by the 13th Finance Commission?

  • A. 4 percentage points
  • B. 10 percentage points
  • C. 14 percentage points
  • D. 6 percentage points

Q8. The Finance Commission that recommended raising the States' share in the divisible pool to 42% was chaired by whom?

  • A. Y. V. Reddy
  • B. C. Rangarajan
  • C. Vijay Kelkar
  • D. N. K. Singh

Q9. Under the rationalised classification of Centrally Sponsored Schemes, which single category comprises schemes for social protection and social inclusion and is treated as the 'first charge' on available funds for the National Development Agenda?

  • A. Core of the Core Schemes
  • B. Core Schemes
  • C. Optional Schemes
  • D. Central Sector Schemes

Q10. Consider the following statements distinguishing Central Sector Schemes from Centrally Sponsored Schemes. Which of the statements given above is/are correct?

  1. Central Sector Schemes are funded 100% by the Union government and implemented through central agencies.
  2. Centrally Sponsored Schemes are funded entirely by the State governments, with no contribution from the Union.
  3. Centrally Sponsored Schemes typically relate to subjects in the State List and involve a shared Centre-State funding ratio.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 is administered at the Union level by which ministry?

  • A. Ministry of Tribal Affairs
  • B. Ministry of Environment, Forest and Climate Change
  • C. Ministry of Rural Development
  • D. Ministry of Panchayati Raj

Q12. In the context of India's federal finances, 'vertical fiscal imbalance' is best described as which one of the following?

  • A. The mismatch between the larger expenditure responsibilities of the States and their comparatively limited revenue-raising powers relative to the Union
  • B. The unequal distribution of central tax transfers among different States
  • C. The gap between a government's total revenue and total expenditure in a single financial year
  • D. The complete absence of any independent taxation power at the State level