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Inclusive Growth & Budgeting
GS-III: Economy, Environment, Security, Disaster & Technology
Useful for: UPSC Civil Services
Overview
Inclusive growth spreads benefits across regions and groups; budgeting tools such as gender, outcome and green budgeting align spending with these goals.
Key points
- Gender budgeting has been part of the Union Budget since 2005–06.
- Outcome budgeting (from 2005) links expenditure to measurable results.
- Green budgeting tags spending by environmental impact.
- Zero-based budgeting justifies every item afresh.
- Public capital expenditure crowds in private investment and jobs.
- The Kuznets curve suggests inequality first rises then falls with growth — though not automatically.
Practice MCQs
From the perspective of definition and scope, which one of the following statements about Inclusive Growth & Budgeting is correct?
- Inclusive Growth & Budgeting is unrelated to institutions, processes or real-world applications.
- Inclusive Growth & Budgeting has no exceptions or limitations in exam analysis.
- Inclusive growth asks who participates in and benefits from growth, not only how fast output expands.
- A larger fiscal deficit is always either good or bad regardless of economic context and expenditure quality.
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Answer: (c) Inclusive growth asks who participates in and benefits from growth, not only how fast output expands.. Inclusive growth asks who participates in and benefits from growth, not only how fast output expands.
Consider the following statements on Inclusive Growth & Budgeting, focusing on definition and scope: 1. Inclusive growth asks who participates in and benefits from growth, not only how fast output expands. 2. Distributional effects can differ between tax, transfer and public-service instruments. Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
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Answer: (c) Both 1 and 2. Both statements are correct.
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