Answer: C
Explanation:
● Debt for climate swap was introduced as a debt restructuring device that aims to combat
climate change by ensuring that debt-ridden countries do not incur additional debt while
addressing climate change locally. Hence statement 1 is correct.
● They possess dual objectives: to promote specific investment and policy action on one hand
and promote debt relief on the other. Hence statement 2 is correct.
● The small island developing states (SIDS) can make use of debt-for-climate swaps, to address
challenges such as: adapting to increasing climate risk and recovering from financial distress.
Hence statement 3 is correct.
● For instance: In 2021, Belize, a country on the northeastern coast of Central America, reduced
its debt by 10 per cent of its GDP and acquired funds to protect the world’s second-largest coral
reef by striking a $553-million swap deal with The Nature Conservancy (TNC), a US-based
environmental organisation.

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1. With reference to State Development Loans (SDLs), consider the following statements.
1. They are dated securities issued by states for meeting their market borrowings
requirements.
2. SDLs issued by the State Governments qualify for Statutory Liquidity Ratio (SLR)
requirements.
3. Foreign Portfolio Investors (FPI) are not allowed to invest in SDLs.

Answer: B
Explanation:
● Statement 1 is correct: State Development Loans (SDLs) are dated securities issued by
states for meeting their market borrowings requirements.
● Statement 2 is correct: The SDL securities issued by states are credible collateral for
meeting the SLR requirements of banks.
● Statement 3 is incorrect: Foreign Portfolio Investors (FPI) are allowed to invest in SDLs.
The limits for FPI investment in SDLs is 2 per cent of outstanding stock of securities.

2. Consider the following statements about cess.
1. If the cess collected in a particular year goes unspent, it can be allocated for other purposes.
2. Proceeds from cess are part of the divisible pool of taxes.
3. Cess can be levied on both indirect and direct taxes.

Answer: A
Explanation:
● A cess is a tax that is levied by the government to raise funds for a specific purpose.
Collections from the Education Cess and Secondary and Higher Education Cess, for
instance, are supposed to be used for funding primary and higher and secondary
education respectively.
● Statement 1 is incorrect: While all taxes go to the Consolidated Fund of India (CFI), cess
may initially go to the CFI but has to be used for the purpose for which it was collected. If
the cess collected in a particular year goes unspent, it cannot be allocated for other

purposes. The amount gets carried over to the next year and can only be used for the cause
it was meant for.
● Statement 2 is incorrect: The Union government does not have to share cesses with
the states as they are not part of the divisible pool that needs to be shared with states.
● Statement 3 is correct: Cess can be levied on both indirect and direct taxes.
● It should be noted that state governments can impose cess if and only if it is approved by
the GST Council. For example, after Kerala floods in the year 2018, the state government
imposed a 1% calamity cess on GST and became the first state to do it.

3. The Government of India has launched the PM Vishwakarma scheme with the main
objective of

Answer: A
Explanation:
● PM Vishwakarma is a Central Sector Scheme launched by the Government of India in
2023 to provide end-to-end support to artisans and craftspeople who work with their
hands and tools.
● It is a new scheme with an outlay of Rs 13,000 crore and is fully funded by the Central
government. The Ministry of Micro, Small & Medium Enterprise is the nodal ministry of
PM Vishwakarma Yojana.
● The prime focus of PM Vishwakarma is at improving the quality as well as the reach of
products and services of artisans and craftspeople and to ensure that they are integrated
with the domestic and global value chains.
● The scheme will provide support to artisans and craftspeople of rural and urban areas
across India.
● Eighteen traditional crafts will be covered under PM Vishwakarma. These include (i)
Carpenter; (ii) Boat Maker; (iii) Armourer; (iv) Blacksmith ; (v) Hammer and Tool Kit
Maker; (vi) Locksmith; (vii) Goldsmith; (viii) Potter; (ix) Sculptor, Stone breaker; (x)
Cobbler (Shoesmith/ Footwear artisan); (xi) Mason (Rajmistri); (xii) Basket/Mat/Broom
Maker/Coir Weaver; (xiii) Doll & Toy Maker (Traditional); (xiv) Barber; (xv) Garland maker;
(xvi) Washerman; (xvii) Tailor; and (xviii) Fishing Net Maker.
Benefits of the scheme
● The Scheme envisages provisioning of the following benefits to the artisans and
craftspersons:
○ (i) Recognition: Recognition of artisans and craftspeople through PM Vishwakarma
certificate and ID card.
○ (ii) Skill Upgradation: Basic Training and Advanced Training, with a stipend of Rs.
500 per day;
○ (iii) Toolkit Incentive: A toolkit incentive of upto Rs. 15,000 in the form of e-
vouchers at the beginning of Basic Skill Training.
○ (iv) Credit Support: Collateral free ‘Enterprise Development Loans’ of upto Rs. 3
lakh at a concessional rate of interest.

4. In the context of International politics, the term ‘de-hyphenation’ refers to

Answer: D
Explanation:
● In international politics, de-hyphenation means dealing with two countries, having an
adversarial relationship between them, in an independent manner. This would mean
building a relationship with one, ignoring the complexities of its relations with the other.
● If a third country were to be too conscious of the adversarial relations between two such
countries, locked in enduring hostility, it is likely to face foreign policy challenges in
conducting smooth relationship with both. Therefore, in such a case, a declaratory policy of
de-hyphenation creates the required space for manouevre for the third country by lowering
expectations of partisanship from it, in the other two countries.
● For example: In 2014, India instituted a policy toward Israel called de-hyphenation.
According to this policy, India’s relationship with Israel would stand on its own merits,
independent and separate from India’s relationship with the Palestinians. It would no
longer be India’s relationship with Israel-Palestine, but India’s relationship with Israel, and
India’s relationship with the Palestinians.

5. With reference to Blackholes, consider the following statements:
1. A black hole is a place in space where gravity pulls so much that even light can not get out.
2. An Event Horizon is the boundary defining the region of space around a black hole from
which nothing can escape.
3. Sagittarius A* is a supermassive black hole at the center of the Milky Way galaxy.