1
With reference to the horizontal devolution formula recommended by the Sixteenth Finance Commission for 2026–31, consider the following statements:
- Population based on the 2011 Census carries a weight of 17.5%.
- Per Capita GSDP Distance carries the highest weight at 42.5%.
- Contribution to GDP has been assigned a weight of 10%.
- The forest criterion carries a weight of 12.5%.
Which of the statements given above are correct?
The correct answer is (c) 1, 2 and 3 only.
Core Concept
Horizontal devolution
It distributes the States’ collective share of the divisible pool among individual States through weighted criteria reflecting fiscal capacity, population, demographic performance, area, forest cover and economic contribution.
Equity–efficiency balance
Per Capita GSDP Distance has the largest weight because it reflects differences in fiscal capacity, while Contribution to GDP introduces an efficiency-oriented component.
Statement-wise Analysis
Statement 1
Correct − Population based on the 2011 Census carries a weight of 17.5%.
Statement 2
Correct − Per Capita GSDP Distance carries 42.5%, the highest weight in the formula.
Statement 3
Correct − Contribution to GDP has been assigned a weight of 10%.
Statement 4
Incorrect − Forest carries 10%, not 12.5%. Demographic Performance and Area also carry 10% each.
Additional Prelims Facts
Vertical devolution
The Commission retained the States’ share in the divisible pool at 41%.
Local-body grants
It recommended ₹7,91,493 crore for duly constituted rural and urban local bodies during 2026–31.
2
Which one of the following correctly describes the constitutional relationship between Articles 275 and 280?
The correct answer is (a) Article 275 provides for grants-in-aid of the revenues of certain States, while Article 280 provides for a Finance Commission to recommend principles governing such grants.
Core Concept
Article 275
It authorises grants-in-aid from the Consolidated Fund of India to States requiring assistance and contains special provisions connected with Scheduled Tribes and Scheduled Areas.
Article 280
It requires the President to constitute a Finance Commission, ordinarily every five years, to recommend tax distribution and principles governing grants-in-aid.
Option-wise Analysis
Option (a)
Correct − It accurately distinguishes the constitutional grant provision from the Finance Commission’s recommendatory role.
Option (b)
Incorrect − State Finance Commissions arise under Articles 243-I and 243-Y, while the GST Council is established under Article 279A.
Option (c)
Incorrect − Cesses levied for specific purposes and surcharges for Union purposes are excluded from the divisible pool. Article 280 expressly covers principles governing grants-in-aid.
Option (d)
Incorrect − Finance Commission recommendations are advisory in legal form and require implementation through constitutional, executive or legislative action.
Additional Prelims Facts
Local-body mandate
Article 280(3)(bb) and (c) covers measures to augment State Consolidated Funds for Panchayats and Municipalities on the basis of State Finance Commission recommendations.
Surcharge power
Article 271 permits Parliament to levy surcharges for Union purposes; their proceeds are not shared through the divisible pool.
3
With reference to India’s Monetary Policy Committee, consider the following statements:
- It consists of three members from the Reserve Bank of India and three members appointed by the Central Government.
- The RBI Governor chairs the Committee and has a casting vote in the event of a tie.
- The Committee itself notifies the inflation target and may change it at any meeting by a simple majority.
- The Union Finance Minister is an ex officio voting member of the Committee.
Which of the statements given above are correct?
The correct answer is (b) 1 and 2 only.
Core Concept
Statutory framework
The RBI Act provides for a six-member Monetary Policy Committee to determine the policy rate required to achieve the notified inflation target while keeping the objective of growth in mind.
Inflation mandate
The Central Government, in consultation with the RBI, determines the CPI inflation target for a specified period. The Committee conducts monetary policy within that mandate.
Statement-wise Analysis
Statement 1
Correct − The Committee has three RBI members and three external members appointed by the Central Government.
Statement 2
Correct − The RBI Governor is its Chairperson and exercises a second or casting vote when votes are equally divided.
Statement 3
Incorrect − The notified inflation target is not independently created or altered by the Committee during its meetings.
Statement 4
Incorrect − The Union Finance Minister is not a member of the Monetary Policy Committee.
Additional Prelims Facts
Inflation band
India’s notified target is 4% CPI inflation with a tolerance band of 2% to 6%.
Casting vote
Every member has one vote; the Governor has an additional vote only when the votes are equally divided.
4
Consider the following pairs relating to non-resident deposit accounts in India:
- FCNR(B) account — Term deposit denominated in a freely convertible foreign currency
- NRE account — Rupee-denominated account with repatriable balances
- NRO account — Rupee-denominated account commonly used for legitimate income and dues in India, with repatriation subject to applicable conditions
- FCNR(B) account — Recurring deposit facility available in the designated foreign currency
How many of the above pairs are correctly matched?
The correct answer is (d) Only three.
Core Concept
Currency denomination
FCNR(B) deposits are maintained in permitted foreign currencies, whereas NRE and NRO accounts are denominated in Indian rupees.
Exchange exposure
An NRE depositor bears the exchange-rate risk associated with the rupee, while an FCNR(B) deposit remains denominated in the designated foreign currency.
Pair-wise Analysis
Pair 1
Correctly matched − FCNR(B) accounts can be maintained only as term deposits in permitted, freely convertible foreign currencies.
Pair 2
Correctly matched − NRE accounts are rupee-denominated, and their balances are repatriable under the applicable regulatory framework.
Pair 3
Correctly matched − NRO accounts facilitate bona fide rupee transactions and receipt of legitimate dues or income in India. Repatriation is governed by prescribed conditions.
Pair 4
Incorrectly matched − Banks cannot accept recurring deposits under the FCNR(B) scheme.
5
With reference to the conservation of the Asiatic lion in India, consider the following statements:
- The official 2025 estimate recorded 891 lions, an increase from 674 in 2020.
- The only free-ranging wild population of the Asiatic lion occurs in Gujarat’s Saurashtra landscape.
- The expansion of lions outside protected areas makes movement corridors ecologically unnecessary.
- Disease can remain a population-level risk when a recovering species is concentrated within one geographical landscape.
Which of the statements given above are correct?
The correct answer is (b) 1, 2 and 4 only.
Core Concept
Landscape recovery
Numerical growth alone does not ensure long-term survival. Corridors, satellite habitats, disease preparedness and coexistence outside protected areas determine population resilience.
Concentration risk
A geographically concentrated population remains vulnerable to epidemics, extreme events and landscape fragmentation even when its total number increases.
Option-wise Analysis
Option (a)
Incorrect − Statement 3 is incorrect, while Statements 2 and 4 are correct.
Option (b)
Correct − Statements 1, 2 and 4 accurately reflect the population’s recovery and continuing vulnerability.
Option (c)
Incorrect − It includes the incorrect corridor statement and excludes the correct population estimate.
Option (d)
Incorrect − Movement corridors remain essential, making Statement 3 incorrect.
Additional Prelims Facts
Satellite populations
The 2025 estimation recorded 497 lions in satellite populations outside the core population.
Green Status
The IUCN Green Status assesses ecological recovery across a species’ indigenous range, whereas the Red List primarily assesses extinction risk. The lion’s first Green Status assessment classified it as Largely Depleted.
6
Consider the following pairs under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980:
- Section 1A — Land covered by the Act and specified exclusions
- Section 2 — Restrictions on dereservation or non-forest use requiring prior approval of the Central Government
- Section 2A — Appeal to the National Green Tribunal
- Section 3 — Power to declare Eco-Sensitive Zones around protected areas
How many of the above pairs are correctly matched?
The correct answer is (d) Only three.
Core Concept
Central approval
The Act regulates specified changes in the legal status or use of forest land by requiring prior approval of the Central Government.
Statutory sequence
Coverage, approval restrictions, appellate remedies and advisory scrutiny are assigned to separate provisions.
Pair-wise Analysis
Pair 1
Correctly matched − Section 1A specifies the categories of land covered by the Act and identifies statutory exclusions.
Pair 2
Correctly matched − Section 2 governs dereservation, non-forest use and other specified actions requiring prior Central Government approval.
Pair 3
Correctly matched − Section 2A provides for an appeal to the National Green Tribunal against an order or decision under Section 2.
Pair 4
Incorrectly matched − Section 3 provides for the constitution of an Advisory Committee. Eco-Sensitive Zones are notified under the Environment (Protection) Act framework.
Additional Prelims Facts
Renamed statute
The Forest (Conservation) Act, 1980 was renamed the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 with effect from December 1, 2023.
Separate approvals
Approval under this Act does not automatically replace applicable environmental-clearance, wildlife-protection or pollution-control requirements.
7
Consider the following statements:
Assertion (A): Treated wastewater can contribute to eutrophication in an urban lake even when its organic pollution load has been substantially reduced.
Reason (R): Conventional sewage treatment may leave dissolved nitrogen and phosphorus that stimulate algal growth and subsequent oxygen depletion.
Which one of the following is correct?
The correct answer is (a) Both A and R are correct, and R is the correct explanation of A.
Core Concept
Nutrient enrichment
Eutrophication occurs when excessive nitrogen and phosphorus increase biological productivity beyond the assimilative capacity of a water body.
Oxygen pathway
Algal biomass eventually dies and is decomposed by microorganisms. This raises oxygen demand and can create hypoxic or anoxic conditions.
Assertion–Reason Analysis
Assertion
Correct − Treated effluent can remain nutrient-rich even after substantial removal of suspended solids and biodegradable organic matter.
Reason
Correct − Conventional treatment systems may not include advanced processes capable of adequately removing dissolved nitrogen and phosphorus.
Relationship
Correct explanation − Residual nutrients provide the direct mechanism through which apparently treated wastewater can accelerate eutrophication.
Additional Prelims Facts
Internal loading
Anoxic sediments may release stored phosphorus into the water column, allowing eutrophication to continue even after external nutrient inputs decline.
Pollution distinction
Low BOD does not by itself establish that an effluent contains sufficiently low concentrations of nitrogen and phosphorus for discharge into a sensitive lake.
8
With reference to the mainland clouded leopard, consider the following statements:
- Its scientific name is Neofelis nebulosa.
- Its naturally high population density makes small and isolated forest patches sufficient for long-term conservation.
- Maintaining connectivity among forest habitats is important because fragmentation and human disturbance can isolate low-density populations.
Which of the statements given above are correct?
The correct answer is (c) 1 and 3 only.
Core Concept
Forest specialist
The mainland clouded leopard is associated with dense forest landscapes and occurs at relatively low densities, making habitat quality and connectivity central to conservation.
Landscape approach
Protected areas alone may not sustain viable populations when roads, mining, settlements and agricultural expansion fragment movement routes.
Statement-wise Analysis
Statement 1
Correct − Neofelis nebulosa is the scientific name of the mainland clouded leopard.
Statement 2
Incorrect − The species occurs at low densities and requires extensive connected forest habitat. Small isolated patches increase demographic and genetic risks.
Statement 3
Correct − Connectivity enables dispersal and gene flow between populations occupying fragmented forest landscapes.
Additional Prelims Facts
Species distinction
The mainland clouded leopard is distinct from the Sunda clouded leopard, Neofelis diardi, which occurs on Borneo and Sumatra.
Meghalaya mission
Mission Clouded Leopard covers habitat restoration, research, monitoring, landscape connectivity, protection and community participation.
9
With reference to the declaration of a monument of national importance under the Ancient Monuments and Archaeological Sites and Remains Act, 1958, consider the following statements:
- An “ancient monument” under the Act must have existed for not less than one hundred years.
- A preliminary notification of the Central Government’s intention is followed by a two-month period for objections before a final declaration.
- Every individual declaration requires Parliament to enact a separate site-specific law.
- A site’s historical or sacred importance by itself automatically satisfies every archaeological requirement under the Act.
Which of the statements given above are correct?
The correct answer is (b) 1 and 2 only.
Core Concept
Statutory threshold
The Act protects qualifying ancient monuments and archaeological sites through a notification-based process involving antiquity, archaeological characteristics and national importance.
Heritage distinction
Historical memory, sacred value and community identity may justify preservation, but they do not automatically establish eligibility under every archaeological-protection category.
Statement-wise Analysis
Statement 1
Correct − The statutory definition requires the monument, site or relevant remains to have existed for at least one hundred years.
Statement 2
Correct − Section 4 provides for a preliminary Gazette notification, a two-month objection period and a possible final declaration after consideration of objections.
Statement 3
Incorrect − The Central Government may make the declaration through the statutory notification procedure. A separate Act of Parliament is not required for each site.
Statement 4
Incorrect − Historical importance and eligibility under a specific archaeological-protection framework are legally distinct questions.
Additional Prelims Facts
Protected monument
A monument declared nationally important under the Act becomes a centrally protected monument administered through the statutory framework.
Mangarh geography
Mangarh lies in the Rajasthan–Gujarat border region and is an important memory landscape for Bhil communities across Rajasthan, Gujarat, Madhya Pradesh and Maharashtra.
10
With reference to peatlands and greenhouse-gas accounting, consider the following statements:
- Persistent waterlogging and oxygen-poor conditions slow decomposition and permit organic matter to accumulate as peat.
- Drainage generally increases carbon dioxide emissions by exposing stored peat carbon to aerobic decomposition.
- Rewetting necessarily reduces carbon dioxide, methane and nitrous oxide emissions simultaneously and immediately.
- The 2013 IPCC Wetlands Supplement provides inventory guidance for drained and rewetted organic soils.
Which of the statements given above are correct?
The correct answer is (a) 1, 2 and 4 only.
Core Concept
Carbon accumulation
Peatlands store carbon because persistent saturation limits oxygen availability and slows microbial decomposition of plant material.
Hydrological control
Water-table depth influences the balance among carbon dioxide, methane and nitrous oxide, requiring restoration outcomes to be assessed separately for each gas.
Statement-wise Analysis
Statement 1
Correct − Waterlogging creates oxygen-poor conditions under which partially decomposed organic matter accumulates as peat.
Statement 2
Correct − Drainage permits oxygen to enter peat layers, accelerating decomposition and carbon dioxide release.
Statement 3
Incorrect − Rewetting generally reduces peat oxidation and carbon dioxide loss, but methane emissions may increase under anaerobic conditions. All greenhouse gases do not necessarily decline together.
Statement 4
Correct − The 2013 IPCC Wetlands Supplement extends inventory guidance to wetlands, including drained and rewetted organic soils.
Additional Prelims Facts
Carbon significance
Peatlands cover only about 3–4% of the world’s land surface but store roughly 30% of global soil organic carbon.
Inventory tiers
Tier 1 uses default emission factors, Tier 2 uses country- or region-specific factors, and Tier 3 uses detailed models or measurement-based systems.
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