Indian Economy·Prelims Questions

Food Fertilizer Fuel Subsidies — Prelims Questions

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Version 1Updated 8 Mar 2026
Q1medium

Which of the following statements regarding the Nutrient Based Subsidy (NBS) scheme for fertilizers is/are correct? 1. It covers only urea fertilizers. 2. The subsidy amount is fixed per kilogram for each nutrient (N, P, K, S). 3. Manufacturers are free to fix the Maximum Retail Price (MRP) of fertilizers under this scheme. Select the correct answer using the code given below:

Q2medium

With reference to the 'Pahal' (DBTL) scheme for LPG, consider the following statements: 1. It aims to transfer the subsidy amount directly to the consumer's Aadhaar-linked bank account. 2. Consumers purchase LPG cylinders at the subsidized price, and the government reimburses the difference to the oil marketing companies. 3. The scheme has been instrumental in reducing duplicate connections and diversion of subsidized cylinders. Which of the statements given above is/are correct?

Q3easy

Which of the following constitutional provisions primarily provides the mandate for the State to undertake welfare measures like food subsidies to raise the level of nutrition?

Q4medium

Consider the following statements regarding the impact of subsidies in India: 1. Subsidies can lead to market distortions by altering price signals. 2. High subsidy expenditure can contribute to a higher fiscal deficit. 3. Direct Benefit Transfer (DBT) mechanisms have universally eliminated all leakages in subsidy delivery. Which of the statements given above is/are correct?

Q5hard

Which of the following is NOT a primary objective of fertilizer subsidies in India?

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