Model Answers of GS MAINS Test Questions held on 24 July, 2010

1.What is deficit financing?
Deficit financing refers to financing the excess of government expenditure over its revenue through printing of currency notes or through borrowings.
2. Define poverty line.
An income level that is considered necessary to satisfy a minimum nutritional requirements of a person is called poverty line.
3. What is PDS?
The Public Distribution System is a system of management of scarcity and for distribution of food grains at affordable prices.
4. Differentiate between plan and non-plan expenditure.
The expenditure in developing ‘planned’ projects is plan expenditure while that on maintenance and running of the existing projects is known as non-plan expenditure.
5. What do you mean by democratic planning?
Planning is ‘democratic’ if people are associated at both formulation and implementation stages and it is finalized through debate among people’s representatives.
6. What is regional planning?
Regional planning is a sort of spatial planning at various territorial levels (such as block/district/state) for achieving sustainable development for the region.
7. Define recession.
A recession is a decline in a country's gross domestic product growth for two or more consecutive quarters of a year.