Logical Reasoning Questions for CLAT | QB Set 28

The Union Budget as litmus test of a rethink or stasis

Union Finance Minister Nirmala Sitharaman is to present the Union Budget next week, on July 23. This time the government is a Bharatiya Janata Party (BJP)-led coalition government. The Budget is not just a revenue and expenditure statement of the government. It has to be understood as representing the policy and the politics of the incumbent government.

Unlike in 2019, when the BJP had 303 seats in the Lok Sabha, it now has 240 seats. Coalition politics and the aspirations of the regional coalition partners cannot be ignored. The reduced seat tally for the BJP could suggest a resentment with and dissent against the economic policies adopted by the government during its second term in 2019–24. The general election this time was termed as “normal,” implying that the focus of the election campaign was around “bread and butter” issues, unlike in 2014 and 2019, where it was said to be aspirational and emotive issues.

The electorate seems to have very effectively conveyed its disappointment with the government in being able to address its concerns and anxieties. Therefore, this Budget is being keenly watched.

Employment issue as a poll plank

One of the major campaign planks in the 2024 general election was unemployment, concern about inflation and questions around social and economic justice. Employment, especially, can be seen as directly or indirectly holding centrality in addressing other questions from an economic vantage point. So, what might the Budget do in addressing this objective? Economists who hold allegiance to the Chicago School of thought and its mezzanine version reiterated by those in Columbia University have already expressed aggressive opposition to the thought of the government attempting to generate employment opportunities. By implication, this targets the potential allocations for the already neglected Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) programme as well as the demands for a similar programme for the urban unemployed.

Question -1)
Statement: The Union Budget is not merely a financial statement but also reflects the policy and politics of the ruling government.

Assumptions:
I. Economic policies directly impact the electoral outcomes.
II. Opposition parties’ feedback influences budgetary decisions.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit

Question -2)
Statement: The reduced seat tally of the BJP in the Lok Sabha suggests discontent with its economic policies.

Assumptions:
I. Political parties often realign based on public sentiment towards economic issues.
II. Coalition governments tend to prioritize economic reforms over social welfare.

Options:
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit

Question -3)
Statement: The focus of the 2024 general election campaign was primarily on unemployment and inflation.

Assumptions:
I. Election campaigns often pivot around socio-economic issues impacting the common populace.
II. Opposition parties seldom address economic concerns during electoral campaigns.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit

Question -4)
Statement: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has become essential due to failures in generating employment through the private sector.

Assumptions:
I. MGNREGA is an effective tool in addressing rural unemployment.
II. The private sector alone can effectively manage employment generation without government intervention.

Options:
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit

Question -5)
Statement: The focus of previous Budgets on high-value sectors has led to low employment elasticity.

Assumptions:
I. Sectors prioritized in previous Budgets are crucial for economic growth.
II. Budgetary allocations influence employment trends across various sectors.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit

Question -6)
Statement: The MSME sector requires nuanced attention in the upcoming Budget due to recent setbacks.

Assumptions:
I. MSMEs contribute significantly to employment generation.
II. Budgetary neglect of the MSME sector can lead to economic instability.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Both assumptions I and II are implicit
D. Neither assumption I nor assumption II is implicit