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UPSC 2010: With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements : 1. The assets in the National Investment Fund are managed by the Union Ministry of Finance. 2. The National Investment Fund is to be maintained within the Consolidated Fund of India. 3. Certain Asset Management Companies are appointed as the fund managers. 4. A certain proportion of annual income is used for financing select social sectors. Which of the statements given above is/are correct ?
(a)1 and 2
(b)2 only
(c)3 and 4
(d)3 only
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Not attemptedCorrect Answer: (c) 3 and 4
NIF corpus raised from disinvestment is managed by three public-sector Asset Management Companies—SBI, LIC and UTI—appointed as fund managers, and 75 % of the annual income (at the time of the question) was earmarked for education, health and other social schemes; so statements 3 and 4 are correct. The assets are managed by these AMCs, not directly by the Finance Ministry, and the Fund is kept outside the Consolidated Fund of India (it is maintained in the Public Account), so statements 1 and 2 are incorrect. Hence only 3 and 4 are correct. ([iasexamportal.com](https://iasexamportal.com/Answer-Key/General-Studies-Solution-CSP-2010))
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What is the correct answer to this UPSC 2010 Indian Economy question?▼
The correct answer is option (c): 3 and 4. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2010, GS Paper 1, as Question 134. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
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UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.