UPSC Prelims Practice Questions — Larger, poorer States set for higher funds under new rural employment scheme
Q1. Under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, which replaced MGNREGA with effect from 1 July 2026, exactly how many days of guaranteed wage employment is every eligible rural household entitled to in a financial year?
- A. 100 days
- B. 120 days
- C. 125 days
- D. 150 days
Q2. The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, which superseded MGNREGA, 2005, was introduced in the Lok Sabha in which year?
- A. 2023
- B. 2024
- C. 2025
- D. 2026
Q3. With reference to the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, consider the following:
1. It guarantees at least 100 days of wage employment per rural household in a financial year.
2. The Central Government bears 100% of the unskilled wage cost of the programme.
3. It is an allocation-based scheme in which the Centre fixes each State's annual outlay in advance.
4. An applicant is entitled to an unemployment allowance if work is not provided within 15 days of application.
Which of the above are correctly identified as features of MGNREGA, 2005?
- It guarantees at least 100 days of wage employment per rural household in a financial year.
- The Central Government bears 100% of the unskilled wage cost of the programme.
- It is an allocation-based scheme in which the Centre fixes each State's annual outlay in advance.
- An applicant is entitled to an unemployment allowance if work is not provided within 15 days of application.
- A. 1 and 3
- B. 1, 2 and 4
- C. 2 and 4 only
- D. 1, 2, 3 and 4
Q4. The Mahatma Gandhi National Rural Employment Guarantee Act, guaranteeing 100 days of wage employment to rural households, was enacted in which year?
- A. 2004
- B. 2005
- C. 2006
- D. 2009
Q5. Consider the following statements regarding the funding of rural employment guarantee programmes:
1. Under MGNREGA, the Centre bore 100% of the unskilled wage component.
2. Under VB-G RAM G, the general Centre:State cost-sharing ratio for most States is 60:40.
3. Under VB-G RAM G, North-Eastern and Himalayan States have a Centre:State ratio of 90:10.
4. Under VB-G RAM G, the Centre continues to bear the entire wage bill for all States.
Which of the above are correctly identified?
- Under MGNREGA, the Centre bore 100% of the unskilled wage component.
- Under VB-G RAM G, the general Centre:State cost-sharing ratio for most States is 60:40.
- Under VB-G RAM G, North-Eastern and Himalayan States have a Centre:State ratio of 90:10.
- Under VB-G RAM G, the Centre continues to bear the entire wage bill for all States.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q6. The enhanced base floor wage of ₹300 per day and the revised cost-sharing wage rates under VB-G RAM G were notified by which Union Ministry?
- A. Ministry of Rural Development
- B. Ministry of Finance
- C. Ministry of Labour and Employment
- D. Ministry of Panchayati Raj
Q7. The horizontal devolution formula of the 16th Finance Commission (award period 2026-31) is being repurposed to allocate VB-G RAM G funds among States. Consider the following:
1. Income distance
2. Forest and ecology
3. Demographic performance
4. Tax and fiscal effort
Which of the above are correctly identified as criteria used in the 16th Finance Commission's horizontal formula?
- Income distance
- Forest and ecology
- Demographic performance
- Tax and fiscal effort
- A. 1, 2 and 3
- B. 1, 3 and 4
- C. 2 and 4
- D. 1, 2, 3 and 4
Q8. Consider the following statements comparing the 16th Finance Commission with the 15th Finance Commission:
1. The 16th FC introduced 'Contribution to GDP' as a criterion, replacing the 'tax and fiscal effort' criterion of the 15th FC.
2. The 16th FC increased the weight assigned to Population (2011 Census) relative to the 15th FC.
3. The 16th FC raised the weight assigned to income distance relative to the 15th FC.
Which of the statements given above are correct?
- The 16th FC introduced 'Contribution to GDP' as a criterion, replacing the 'tax and fiscal effort' criterion of the 15th FC.
- The 16th FC increased the weight assigned to Population (2011 Census) relative to the 15th FC.
- The 16th FC raised the weight assigned to income distance relative to the 15th FC.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q9. With reference to the Finance Commission of India, consider the following:
1. It is constituted by the President under Article 280.
2. It consists of a Chairman and four other members.
3. It recommends the principles governing grants-in-aid to States out of the Consolidated Fund of India.
4. It is normally constituted once every ten years.
Which of the above are correctly identified?
- It is constituted by the President under Article 280.
- It consists of a Chairman and four other members.
- It recommends the principles governing grants-in-aid to States out of the Consolidated Fund of India.
- It is normally constituted once every ten years.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q10. In the context of rural employment programmes, describing MGNREGA as a 'demand-driven' scheme most accurately means that:
- A. The release of Central funds to a State is determined by the volume of employment actually demanded by workers on the ground, rather than by a pre-fixed ceiling
- B. States must generate a fixed quantum of work irrespective of the number of applications received
- C. The Union Budget fixes each State's outlay in advance on the basis of its rural population
- D. Employment is provided only to households officially certified as below the poverty line
Q11. The inter-State allocation of Central funds under VB-G RAM G — which favours larger, poorer States — is based on the horizontal devolution formula recommended by which body?
- A. The Sixteenth Finance Commission
- B. NITI Aayog
- C. The Ministry of Finance
- D. The Union Cabinet