CAPF AC 2025 Q23: Indian Economy – Fiscal Policy & Budget
- (a) 2022-23
- (b) 2021-22
- (c) 2023-24
- (d) 2019-20
Answer: (a) 2022-23
Explanation
Sovereign Green Bonds
How to think: the idea came in the Budget presented in February 2022, which is the Union Budget for 2022-23.
The Budget speech said the government would issue sovereign green bonds to mobilise funds for green infrastructure and lower the economy's carbon intensity.
| Budget | Year of presentation | Green bonds announced? |
|---|---|---|
| 2019-20 | 2019 | No |
| 2021-22 | 2021 | No |
| 2022-23 | 2022 | Yes |
| 2023-24 | 2023 | Mentioned again, after the 2022 announcement |
The Sovereign Green Bond Framework followed in November 2022, and the first auctions were held in January 2023.
Bank key corrected: the stored key was (c) 2023-24; the announcement was in 2022-23, (a).
Answer: (a) 2022-23.
Why each option is right or wrong
- (a) CORRECT. Budget 2022-23 announced the issue of sovereign green bonds.
- (b) Incorrect. Budget 2021-22 had no such announcement.
- (c) Incorrect. Budget 2023-24 came after the announcement and the framework.
- (d) Incorrect. Budget 2019-20 had no such announcement.
Key point
Sovereign Green Bonds: announced in Budget 2022-23 (1 February 2022); framework November 2022; first auction January 2023; proceeds for green infrastructure, to reduce carbon intensity.
Remember
Announced 2022-23; issued from January 2023.
Common mistakes
- Picking 2023-24 because the first bonds were actually issued in early 2023.
- Confusing the Budget year with the year of issue.
- Mixing them with green bonds issued by companies.
Exam tip
Educated guess: the policy was announced a year before the first issue. If the bonds were first sold in January 2023, the announcement must have been in the February 2022 Budget.
Sources
- Union Budget 2022-23, Budget Speech of the Finance Minister, Part A (1 February 2022): Sovereign Green Bonds
- Ministry of Finance, Sovereign Green Bonds Framework (9 November 2022)