Polity & Economy Basics - Complete SSC CGL Guide
What are Polity & Economy in SSC CGL? These are General Knowledge topics covering Indian Constitution, political system, governance structure, economic concepts, budgets, and important acts. Essential for SSC CGL Tier I and Tier II exams.
Indian Constitution Structure - Must remember for SSC exams
Lower House • 545 Members • Direct Election • 5 Year Term
Upper House • 245 Members • Indirect Election • Permanent Body
Indian Parliament Structure - Key differences between Lok Sabha and Rajya Sabha
Pro Tip – The 3-Step Polity & Economy Mastery Method!
1. Learn Structure First: Constitution parts, parliament houses, economic sectors
2. Memorize Key Numbers: Article numbers, years of acts, budget figures
3. Practice MCQs Daily: Apply knowledge to actual exam questions
Visit SKY Practice for 1000+ Polity & Economy questions with detailed explanations.
1. Constitution Basics
Indian Constitution: The supreme law of India adopted on 26 November 1949, came into effect on 26 January 1950. World's longest written constitution.
Constitution Fundamentals
Understanding Constitution Structure
The Indian Constitution has Preamble, 22 Parts, 12 Schedules, and 395 Articles (originally). It establishes India as Sovereign, Socialist, Secular, Democratic Republic.
Preamble Key Words
• Sovereign: Independent authority
• Socialist: Social ownership (added 42nd Amendment)
• Secular: No state religion (added 42nd Amendment)
• Democratic: Government by the people
• Republic: Elected head of state
42nd Amendment (1976): Added "Socialist", "Secular", "Integrity"
Important Parts
Part II: Citizenship (Art 5-11)
Part III: Fundamental Rights (Art 12-35)
Part IV: Directive Principles (Art 36-51)
Part IVA: Fundamental Duties (Art 51A)
Part V: Union Government (Art 52-151)
Part VI: State Governments (Art 152-237)
Memorize: Part III (FR) and Part IV (DPSP) most important
Schedules
2nd: Allowances of officials
3rd: Oaths & affirmations
4th: Rajya Sabha seat allocation
5th: Scheduled Areas/Tribes
6th: Tribal Areas (Assam, Meghalaya, etc.)
7th: Union, State, Concurrent Lists
8th: 22 Official Languages
Total: 12 Schedules (added over amendments)
Constitution Sources
UK Constitution: Parliamentary system, rule of law
US Constitution: Fundamental Rights, judicial review
Irish Constitution: Directive Principles of State Policy
Canadian Constitution: Federation with strong center
German Constitution: Emergency provisions
French Constitution: Republic, liberty, equality, fraternity
Dr. B.R. Ambedkar: Chairman of Drafting Committee
SSC Shortcut: Constitution Numbers to Remember
Original: 395 Articles, 22 Parts, 8 Schedules (now 12)
Current: 448 Articles, 25 Parts, 12 Schedules (approx)
Preamble words: 73 words in English version
Amendments: 105th Amendment (as of 2023)
Constituent Assembly: 299 members, Dr. Rajendra Prasad President
Time taken: 2 years, 11 months, 18 days to draft
Important Articles Table
| Article | Subject | Importance |
|---|---|---|
| Art 1 | India as Union of States | Name and territory of India |
| Art 14 | Equality before law | Right to Equality |
| Art 19 | Six Freedoms | Freedom of speech, assembly, etc. |
| Art 21 | Protection of life & liberty | Most important fundamental right |
| Art 32 | Right to Constitutional remedies | Heart and soul of Constitution |
| Art 44 | Uniform Civil Code | Directive Principle |
| Art 51A | Fundamental Duties | Added by 42nd Amendment |
| Art 356 | President's Rule in States | Emergency provisions |
| Art 370 | Special status to J&K | Abrogated in 2019 |
Solved Example: Constitution Basics
Original Preamble (1950): "Sovereign Democratic Republic"
Words "Socialist" and "Secular" were added later
Step 2: Remember important amendments
42nd Amendment (1976) made many significant changes:
• Added "Socialist", "Secular", "Integrity" to Preamble
• Added Fundamental Duties (Part IVA)
• Added Directive Principles about education, environment
• Often called "Mini-Constitution"
Step 3: Eliminate other options
• 44th Amendment (1978): Restored some democratic features
• 52nd Amendment (1985): Anti-defection law
• 73rd Amendment (1992): Panchayati Raj
• 86th Amendment (2002): Right to Education
Step 4: Verify with facts
42nd Amendment was during Emergency (1975-77)
Passed by Indira Gandhi government
Made extensive changes to Constitution
Came into effect on 3 January 1977
Step 5: Answer confirmation
Yes, 42nd Amendment Act 1976 added "Socialist", "Secular", and "Integrity"
Also changed "unity of the nation" to "unity and integrity of the nation"
Final Answer: 42nd Amendment (1976)
2. Fundamental Rights & Duties
Fundamental Rights (Part III): Basic human rights guaranteed to all citizens. Justiciable (enforceable by courts). Fundamental Duties (Part IVA): Moral obligations of citizens.
Fundamental Rights (Articles 12-35)
The Six Categories of Fundamental Rights
Fundamental Rights are protected by Constitution, can be suspended during Emergency (except Articles 20 & 21). Supreme Court is guardian of FR.
Equality before law (Art 14)
Prohibition of discrimination (Art 15)
Equality of opportunity (Art 16)
Abolition of untouchability (Art 17)
Abolition of titles (Art 18)
6 freedoms (Art 19)
Protection in conviction (Art 20)
Life & personal liberty (Art 21)
Right to education (Art 21A)
Arrest safeguards (Art 22)
Prohibition of trafficking (Art 23)
Prohibition of child labor (Art 24)
Children below 14 not in factories/mines
Human dignity protection
Freedom of conscience (Art 25)
Freedom to manage religious affairs (Art 26)
Freedom from taxes for religion (Art 27)
Freedom from religious instruction (Art 28)
Protection of minority interests (Art 29)
Right to establish educational institutions (Art 30)
Preservation of language/culture
Minority rights protection
Heart and soul of Constitution
Power to move Supreme Court for FR enforcement
Dr. Ambedkar called it most important article
Writs: Habeas Corpus, Mandamus, etc.
1 Writs for Fundamental Rights Enforcement
Mandamus: "We command" - to public official to perform duty
Prohibition: To inferior court to stop exceeding jurisdiction
Certiorari: To quash order of inferior court/tribunal
Quo Warranto: "By what authority" - against unlawful occupation of office
Article 32: Supreme Court can issue writs for FR enforcement
Article 226: High Courts can issue writs for FR and other purposes
2 Fundamental Duties (Article 51A)
Added one more by: 86th Amendment (2002) - total 11 duties
Key Duties:
1. Abide by Constitution & respect national flag/anthem
2. Cherish noble ideals of freedom struggle
3. Uphold sovereignty, unity, integrity of India
4. Defend country & render national service
5. Promote harmony & spirit of common brotherhood
6. Value & preserve rich heritage
7. Protect natural environment
8. Develop scientific temper & spirit of inquiry
9. Safeguard public property
10. Strive for excellence
11. Duty of parents to educate children (added 2002)
Note: Not enforceable by courts, but moral obligations
SSC Shortcut: FR vs DPSP vs FD
Fundamental Rights (Part III): Justiciable, individual rights, suspendable in emergency
Directive Principles (Part IV): Non-justiciable, state policy guidelines, cannot be suspended
Fundamental Duties (Part IVA): Non-justiciable, citizen obligations, added in 1976
Remember: FR are negative rights (state cannot do), DPSP are positive directives (state should do)
Conflict: If FR and DPSP conflict, FR prevail (but courts try to harmonize)
Minerva Mills case (1980): Balance between FR and DPSP is basic structure
Solved Example: Fundamental Rights
Dr. B.R. Ambedkar, Chairman of Drafting Committee, called Article 32 "the heart and soul of the Constitution"
Step 2: Understand Article 32
Article 32: Right to Constitutional Remedies
• Provides right to move Supreme Court for enforcement of Fundamental Rights
• Supreme Court can issue writs (Habeas Corpus, Mandamus, etc.)
• It's a fundamental right itself and also protects other fundamental rights
Step 3: Eliminate other options
• Article 14: Equality before law - important but not called heart and soul
• Article 21: Right to life and personal liberty - very important but not called heart and soul
• Article 19: Six freedoms - important but not called heart and soul
• Article 356: President's Rule - not a fundamental right
Step 4: Reasoning
Why Article 32 is so important:
1. Without enforcement mechanism, rights are meaningless
2. Article 32 provides that enforcement mechanism
3. It makes Fundamental Rights real and enforceable
4. Supreme Court is designated as protector of Fundamental Rights
Step 5: Historical context
Dr. Ambedkar said in Constituent Assembly debates:
"If I was asked to name any particular article in this Constitution as the most important...
I would not refer to any other article except Article 32...
It is the very soul of the Constitution and the very heart of it."
Step 6: Verification
This is a well-known fact in Indian Polity
Frequently asked in SSC, UPSC, and other competitive exams
Final Answer: Article 32
3. Parliament & Governance Structure
Indian Parliament: Bicameral legislature consisting of President, Lok Sabha (Lower House), and Rajya Sabha (Upper House). States have unicameral or bicameral legislatures.
Parliament Composition & Functions
Parliamentary System of India
India follows Westminster model of parliamentary democracy. President is nominal head, Prime Minister is real executive. Council of Ministers responsible to Lok Sabha.
Parliament Composition Comparison
*Anglo-Indian nomination abolished by 104th Constitutional Amendment (2019)
President of India
Election: Electoral College (MPs + MLAs)
Term: 5 years, no term limit
Qualification: Citizen, 35+ years, eligible for LS
Powers: Executive, legislative, judicial, emergency, military
Impeachment: By Parliament for violation of Constitution
Article 52-62: President provisions
First President: Dr. Rajendra Prasad
Prime Minister & Council
Appointment: President appoints leader of majority party
Council of Ministers: Cabinet (senior), Ministers of State, Deputy Ministers
Collective Responsibility: To Lok Sabha
Individual Responsibility: Each minister to PM
Article 74: Council to aid and advise President
Article 75: PM appointed by President
First PM: Jawaharlal Nehru
Supreme Court
Established: 28 January 1950
Judges: CJI + 33 other judges (max 34)
Appointment: President after consultation
Retirement age: 65 years
Jurisdiction: Original, appellate, advisory
Guardian of Constitution: Judicial review power
First CJI: Harilal J. Kania
Article 124-147: Supreme Court provisions
Election Commission
Composition: CEC + 2 Election Commissioners
Appointment: President
Tenure: 6 years or 65 years age
Removal: Same as Supreme Court judge
Functions: Conduct elections, prepare electoral rolls, recognize parties
First CEC: Sukumar Sen
Model Code of Conduct: Guidelines during elections
Independent: Not under government control
1 Money Bills vs Ordinary Bills
• Only in Lok Sabha
• President's recommendation needed
• Rajya Sabha can only suggest, must return in 14 days
• Lok Sabha may accept/reject suggestions
• Speaker certifies as Money Bill
Ordinary Bill:
• Can originate in either house
• No President's recommendation needed
• Both houses must pass
• President's assent needed
• If houses disagree, joint sitting possible (Article 108)
Financial Bill (I): Like Money Bill but also has other matters
Financial Bill (II): Expenditure from Consolidated Fund
2 Emergency Provisions (Part XVIII)
• War, external aggression, armed rebellion
• President proclaims on Cabinet written recommendation
• Approved by Parliament within 1 month
• FR suspended (except Art 20 & 21)
• Federal system becomes unitary
President's Rule (Article 356):
• Failure of constitutional machinery in state
• Maximum 6 months, extendable to 3 years with Parliament approval
• State legislature suspended/powers to Parliament
Financial Emergency (Article 360):
• Threat to financial stability/credit of India
• Never proclaimed so far
44th Amendment: Made Emergency provisions more democratic
Solved Example: Parliament Procedure
Article 110 defines Money Bill:
• Imposition/abolition/regulation of tax
• Borrowing by Government of India
• Custody of Consolidated/Contingency Funds
• Appropriation of money from Consolidated Fund
• Declaration of expenditure as charged on Consolidated Fund
• Receipt/payment from/to these funds
• Any matter incidental to above
Step 2: Recall constitutional provision
Article 110(3): "If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final."
Step 3: Eliminate other options
• President: Gives assent but doesn't decide Money Bill classification
• Prime Minister: Head of government, not constitutional authority for this
• Rajya Sabha Chairman: Presides over Rajya Sabha, no power here
• Finance Minister: Executive role, not constitutional authority
Step 4: Understand significance
Speaker's decision is final and cannot be questioned in any court
This gives Lok Sabha Speaker crucial power in financial matters
Money Bills have special procedure favoring Lok Sabha over Rajya Sabha
Step 5: Historical context
This provision ensures quick passage of financial legislation
Prevents Rajya Sabha (not directly elected) from blocking financial bills
Based on British Parliament system where Speaker certifies Money Bills
Step 6: Recent example
Aadhaar Bill 2016 was certified as Money Bill by Speaker
Controversial because it had non-financial aspects too
Supreme Court upheld Speaker's decision as final
Final Answer: Speaker of Lok Sabha
4. Important Acts & Amendments
Significant Legislation: Various acts passed by Parliament that have shaped India's polity, society, and governance.
Must-Know Acts for SSC
Historical & Contemporary Acts
From British era acts to post-independence legislation, these acts are frequently asked in SSC exams.
Regulating Act 1773
First step: British Parliament control over East India Company
Governor-General: Warren Hastings as first GG of Bengal
Supreme Court: Established at Calcutta (1774)
Significance: Beginning of British parliamentary control
Government of India Act 1919
Montagu-Chelmsford Reforms: Dyarchy in provinces
Bicameral legislature: Central Legislative Assembly & Council of State
Separate electorates: Extended to Sikhs, Anglo-Indians, etc.
Significance: Limited self-government, provincial autonomy
Government of India Act 1935
Federal scheme: Proposed All-India Federation (never implemented)
Provincial autonomy: Dyarchy abolished in provinces
Bicameralism: 6 provinces had bicameral legislatures
Significance: Basis for Indian Constitution, longest act (321 sections)
Indian Independence Act 1947
Partition: India and Pakistan as independent dominions
End of British rule: Sovereignty to Constituent Assemblies
Governor-General: Appointed by King for each dominion
Significance: Legal framework for independence
42nd Amendment Act 1976
"Mini-Constitution": Most comprehensive amendment
Added: "Socialist", "Secular", "Integrity" to Preamble
Added: Fundamental Duties (Part IVA)
Significance: During Emergency, extensive changes
73rd & 74th Amendments 1992
Panchayati Raj: 73rd - Local self-government in rural areas
Municipalities: 74th - Urban local bodies
Reservation: SC/ST and women (⅓) in local bodies
Significance: Constitutional status to local governance
101st Amendment Act 2016
GST: Goods and Services Tax implementation
One nation, one tax: Unified indirect tax system
GST Council: Joint forum of Centre and States
Significance: Biggest tax reform since independence
SSC Shortcut: Amendment Numbers to Remember
1st (1951): Added Ninth Schedule (protected laws from judicial review)
7th (1956): Reorganization of states on linguistic basis
42nd (1976): Mini-Constitution, during Emergency
44th (1978): Undid some 42nd changes, restored democracy
52nd (1985): Anti-defection law (Tenth Schedule)
61st (1989): Voting age reduced from 21 to 18
73rd (1992): Panchayati Raj institutions
74th (1992): Municipalities
86th (2002): Right to Education as FR (Article 21A)
101st (2016): GST implementation
103rd (2019): 10% EWS reservation
104th (2020): Extended SC/ST reservation in Parliament
Important Acts Table
| Year | Act Name | Key Provision | Significance |
|---|---|---|---|
| 1858 | Government of India Act | British Crown rule over India | End of Company rule, beginning of Crown rule |
| 1909 | Indian Councils Act (Morley-Minto) | Separate electorates for Muslims | Communal representation introduced |
| 1919 | Government of India Act (Montagu-Chelmsford) | Dyarchy in provinces | Limited self-government |
| 1935 | Government of India Act | Provincial autonomy, federal scheme | Basis for Indian Constitution |
| 1947 | Indian Independence Act | Partition, independent dominions | Legal independence from Britain |
| 1955 | Hindu Marriage Act | Codified Hindu marriage law | Major social reform legislation |
| 1961 | Dowry Prohibition Act | Prohibited dowry practice | Social reform against dowry system |
| 1976 | 42nd Constitutional Amendment | Added Socialist, Secular to Preamble | Most comprehensive amendment |
| 1993 | Panchayati Raj Act (based on 73rd) | 3-tier local governance | Grassroots democracy |
| 2005 | Right to Information Act | Citizens' right to information | Transparency in governance |
| 2013 | Food Security Act | Legal right to food | World's largest food security program |
| 2019 | Jammu & Kashmir Reorganization Act | J&K bifurcation into two UTs | Changed special status of J&K |
Solved Example: Important Acts
Dyarchy means dual government or dual control
In Indian context: Division of provincial subjects into "transferred" and "reserved"
• Transferred subjects: Administered by ministers responsible to legislature
• Reserved subjects: Administered by governor and executive council
Step 2: Recall historical acts
Several acts introduced governance reforms:
• Regulating Act 1773: First step in British control
• Pitt's India Act 1784: Established Board of Control
• Government of India Act 1858: Crown rule begins
• Indian Councils Act 1892: Limited expansion of legislatures
• Indian Councils Act 1909 (Morley-Minto): Separate electorates
• Government of India Act 1919 (Montagu-Chelmsford): Dyarchy
• Government of India Act 1935: Provincial autonomy, dyarchy abolished
Step 3: Identify correct act
Government of India Act 1919 introduced dyarchy in provinces
Named after Edwin Montagu (Secretary of State) and Lord Chelmsford (Viceroy)
Based on Montagu-Chelmsford Report of 1918
Step 4: Eliminate other options
• Government of India Act 1935: Abolished dyarchy, introduced provincial autonomy
• Indian Councils Act 1909: Introduced separate electorates, not dyarchy
• Regulating Act 1773: First British parliamentary control, not dyarchy
• Pitt's India Act 1784: Dual system in Britain (Court of Directors + Board of Control)
Step 5: Additional details
Dyarchy was experimental and largely unsuccessful
Ministers had limited powers and funds
Led to dissatisfaction and demand for complete provincial autonomy
Abolished by Government of India Act 1935
Step 6: SSC exam perspective
This is frequently asked question in SSC CGL
Also asked: Which act abolished dyarchy? Answer: Government of India Act 1935
Final Answer: Government of India Act 1919 (Montagu-Chelmsford Reforms)
5. Economy Basics & Concepts
Economic Fundamentals: Understanding basic economic concepts, terms, and indicators essential for SSC exams.
Economic Concepts & Indicators
Key Economic Terms for SSC
GDP, inflation, fiscal policy, monetary policy, poverty lines - these concepts form the foundation of economic understanding.
Primary Sector
Agriculture & allied: Farming, fishing, forestry, mining
Share in GDP: ~15-20% (declining)
Employment: ~40-45% workforce
Green Revolution: 1960s, food self-sufficiency
Secondary Sector
Manufacturing & Industry: Factories, construction
Share in GDP: ~25-30%
Make in India: 2014 initiative
Industrial Policy: 1948, 1956, 1991 reforms
Tertiary Sector
Services: IT, banking, tourism, education
Share in GDP: ~55-60% (largest)
Growth driver: Fastest growing sector
IT Revolution: Since 1990s
1 Key Economic Indicators
Nominal GDP: At current prices
Real GDP: At constant prices (adjusted for inflation)
GDP Growth Rate: % change in GDP year-on-year
Inflation: General rise in price level
CPI (Consumer Price Index): Measures retail inflation
WPI (Wholesale Price Index): Measures wholesale inflation
Repo Rate: RBI lending rate to banks
Reverse Repo Rate: RBI borrowing rate from banks
Fiscal Deficit: Government spending minus revenue (excluding borrowings)
Current Account Deficit: Imports exceed exports of goods/services
Forex Reserves: Foreign currency/assets held by RBI
2 Poverty & Unemployment Measures
Tendulkar Committee (2009): ₹816/month rural, ₹1,000/month urban (2011-12)
Rangarajan Committee (2014): ₹972/month rural, ₹1,407/month urban
Current: Based on MPI (Multidimensional Poverty Index)
Unemployment Rate: % of labor force without work
Types: Structural, cyclical, frictional, seasonal
NSSO: National Sample Survey Office conducts surveys
PLFS: Periodic Labour Force Survey (annual)
Schemes: MGNREGA (employment guarantee), PMKVY (skill development)
SSC Shortcut: Economic Terms & Acronyms
GDP: Gross Domestic Product • GNP: Gross National Product
CPI: Consumer Price Index • WPI: Wholesale Price Index
FDI: Foreign Direct Investment • FPI: Foreign Portfolio Investment
FEMA: Foreign Exchange Management Act • FERA: Foreign Exchange Regulation Act
SEZ: Special Economic Zone • EOU: Export Oriented Unit
MSME: Micro, Small & Medium Enterprises • NBFC: Non-Banking Financial Company
NPA: Non-Performing Asset • CRR: Cash Reserve Ratio • SLR: Statutory Liquidity Ratio
Solved Example: Economic Concepts
Poverty line is minimum income/consumption needed for basic necessities
Different committees have suggested different methodologies
Step 2: Recall historical committees
• Alagh Committee (1979): First official poverty line based on calorie intake
• Lakdawala Committee (1993): Used calorie norms but state-specific poverty lines
• Tendulkar Committee (2009): Current official methodology
• Rangarajan Committee (2014): Suggested higher poverty line, not officially adopted
Step 3: Identify current methodology
Tendulkar Committee (headed by Suresh Tendulkar) methodology is currently used
Submitted report in 2009, adopted by Planning Commission
Based on Monthly Per Capita Expenditure (MPCE)
Mixed reference period (365 days for low-frequency items, 30 days for high-frequency)
Step 4: Tendulkar Committee details
Poverty line (2011-12 prices):
• Rural: ₹816 per person per month
• Urban: ₹1,000 per person per month
Based on:
1. Calorie intake + other essential items
2. Education, health, clothing included
3. Uniform poverty line basket for rural and urban
4. Price adjustment using CPI-AL (rural) and CPI-IW (urban)
Step 5: Eliminate other options
• Alagh Committee: First but replaced
• Lakdawala Committee: Replaced by Tendulkar
• Rangarajan Committee: Suggested but not adopted officially
• Dutt Committee: Not related to poverty line
Step 6: Recent developments
NITI Aayog now uses Multidimensional Poverty Index (MPI) along with income-based measures
But for official poverty estimates, Tendulkar methodology is still reference
Final Answer: Tendulkar Committee (2009)
6. Budget & Taxation System
Indian Budget: Annual financial statement of government. Taxation system includes direct and indirect taxes. GST is major recent reform.
Budget Process & Tax Structure
Union Budget & Taxation
Budget presented on 1st February (since 2017). Contains revenue and expenditure estimates. GST implemented in 2017.
Budget 2023-24 Key Figures (Approx)
Budget figures are approximate for understanding relative sizes
Budget Components
Capital Budget: Capital receipts & expenditure
Revenue Receipts: Tax + Non-tax revenue
Capital Receipts: Loans, recoveries, disinvestment
Budget Documents:
1. Annual Financial Statement (Art 112)
2. Demands for Grants
3. Finance Bill
4. Appropriation Bill
5. Macro-economic Framework Statement
6. Fiscal Policy Strategy Statement
Budget Date: 1st February (since 2017)
Direct Taxes
• Old regime: Slabs with exemptions
• New regime (2020): Lower rates, fewer exemptions
Corporate Tax: On company profits
• Domestic companies: 22% (with conditions)
• New manufacturing companies: 15%
Capital Gains Tax: On profit from asset sale
Securities Transaction Tax (STT): On stock market transactions
CBDT: Central Board of Direct Taxes (under Finance Ministry)
Indirect Taxes (Pre-GST)
Service Tax: On services (now part of GST)
VAT (Value Added Tax): State-level tax on goods (now part of GST)
Customs Duty: On imports/exports (still separate)
Central Sales Tax: On inter-state trade (now part of GST)
Entertainment Tax: On entertainment (now part of GST)
Multiple taxes created cascading effect (tax on tax)
GST (Goods & Services Tax)
Constitutional Amendment: 101st (2016)
One nation, one tax: Unified indirect tax system
Dual GST: CGST (Centre) + SGST (State) on intra-state
IGST: Integrated GST on inter-state
GST Council: Joint Centre-State body (Finance Minister chair)
Tax Slabs: 0%, 5%, 12%, 18%, 28% (+ cess on luxury/sin goods)
GSTN: Goods and Services Tax Network (IT backbone)
1 Budget Process Timeline
Nov-Dec: Finance Ministry consultations
Jan: Final budget preparation
1st Feb: Budget presentation by Finance Minister (11 AM)
Feb-Mar: Parliament discussion on Demands for Grants
Before 31 Mar: Appropriation Bill & Finance Bill passed
1st April: New financial year begins
Railway Budget: Merged with General Budget in 2017
Budget Speech: Part A (policy) & Part B (tax proposals)
Vote on Account: Interim permission for expenditure (before elections)
2 Important Government Schemes
MGNREGA: 100 days employment guarantee in rural areas
PMJJBY: Pradhan Mantri Jeevan Jyoti Bima Yojana (life insurance)
PMSBY: Pradhan Mantri Suraksha Bima Yojana (accident insurance)
APY: Atal Pension Yojana (pension scheme)
PMUY: Pradhan Mantri Ujjwala Yojana (LPG connections)
PMJAY: Ayushman Bharat (health insurance)
PMGSY: Pradhan Mantri Gram Sadak Yojana (rural roads)
Swachh Bharat: Clean India mission
Digital India: Digital infrastructure and services
DBT: Direct Benefit Transfer (subsidies directly to beneficiaries)
Solved Example: Budget & Taxation
GST is India's biggest tax reform since independence
Replaced multiple indirect taxes with single unified tax
Step 2: Key dates in GST implementation
• 2014: Constitution (122nd Amendment) Bill introduced in Parliament
• 2016: Bill passed as 101st Constitutional Amendment Act
• 1 July 2017: GST implemented nationwide
• Midnight session: 30 June to 1 July 2017 in Parliament
Step 3: Eliminate other dates
• 1 April 2017: Originally proposed date, but postponed
• 1 January 2017: Not correct
• 1 August 2017: After actual implementation
• 1 March 2017: Not correct
Step 4: GST Council formation
GST Council formed in September 2016
First meeting: 22-23 September 2016
Chairperson: Union Finance Minister
Members: State Finance Ministers
Decisions require ¾ majority (Centre has ⅓ weightage, States ⅔)
Step 5: Historical significance
GST implementation was historic midnight session in Parliament
Similar to "Tryst with Destiny" midnight session on independence
Replaced: Central Excise, Service Tax, VAT, CST, Entry Tax, etc.
Excluded: Petroleum products, alcohol for human consumption, electricity
These may be included later
Step 6: Current status
GST has evolved with multiple rate changes
GST Council meets regularly to make decisions
GST collection crossed ₹1.5 lakh crore monthly average
Simplified tax structure for businesses
Final Answer: 1 July 2017
7. Banks & RBI Functions
Banking System: Reserve Bank of India (central bank), commercial banks, cooperative banks. RBI regulates monetary policy and banking operations.
Banking Structure & RBI
Indian Banking System
Multi-layered banking system with RBI at apex. Banks classified as public sector, private sector, foreign, regional rural, cooperative.
1 Reserve Bank of India (RBI)
Nationalized: 1 January 1949
Headquarters: Mumbai
Governor: Appointed by Central Government
Functions:
• Monetary policy management
• Regulator and supervisor of financial system
• Manager of foreign exchange
• Issuer of currency
• Banker to government
• Banker to banks
Monetary Policy Committee (MPC): Sets repo rate (6 members: 3 RBI + 3 external)
2 Banking Reforms & Committees
Bank Nationalization (1980): 6 more banks nationalized
Narasimham Committee I (1991): Banking sector reforms post-liberalization
Narasimham Committee II (1998): Further reforms
RBI Act Amendment (2016): MPC framework formalized
Insolvency and Bankruptcy Code (2016): NPA resolution
Public Sector Banks (PSBs): 12 after mergers (from 27 in 2017)
Bank Mergers (2019-20): 10 PSBs merged into 4
Bad Bank (2021): National Asset Reconstruction Company Ltd (NARCL)
SSC Shortcut: Banking Terms & Acronyms
CRR: Cash Reserve Ratio (banks keep with RBI) • SLR: Statutory Liquidity Ratio (in govt securities)
Repo Rate: RBI lending to banks • Reverse Repo: RBI borrowing from banks
MSF: Marginal Standing Facility (emergency window) • LAF: Liquidity Adjustment Facility
NPA: Non-Performing Asset • SARFAESI Act: Securitization and Reconstruction of Financial Assets
CBS: Core Banking Solution • RTGS: Real Time Gross Settlement • NEFT: National Electronic Funds Transfer
UPI: Unified Payments Interface • IMPS: Immediate Payment Service
KYC: Know Your Customer • AML: Anti-Money Laundering • CFT: Counter Financing of Terrorism
Solved Example: Banking & RBI
India has multiple financial regulators for different sectors:
• Banks: Reserve Bank of India (RBI)
• Capital markets: Securities and Exchange Board of India (SEBI)
• Insurance: Insurance Regulatory and Development Authority of India (IRDAI)
• Pension: Pension Fund Regulatory and Development Authority (PFRDA)
Step 2: RBI's regulatory role
RBI regulates and supervises:
• Commercial banks (public, private, foreign)
• Cooperative banks (with NABARD)
• Non-Banking Financial Companies (NBFCs)
• Payment systems
• Credit information companies
Step 3: RBI's powers
Under Banking Regulation Act 1949, RBI has powers to:
• Issue licenses to banks
• Inspect banks
• Impose penalties
• Set capital adequacy norms
• Issue directions on loans, investments, etc.
Step 4: Eliminate other options
• Ministry of Finance: Policy making, not day-to-day regulation
• SEBI: Regulates capital markets, not banks
• IRDAI: Regulates insurance companies, not banks
• NABARD: Regulates rural and cooperative banks (with RBI), not all banks
Step 5: Historical context
RBI was established in 1935 as private bank
Nationalized in 1949
Given wide regulatory powers over banking system
Also regulates monetary policy, foreign exchange, payment systems
Step 6: Recent developments
RBI has taken strict action against banks for regulatory violations
Imposed penalties, restricted operations, superseded boards
Plays crucial role in maintaining financial stability
Final Answer: Reserve Bank of India (RBI)
8. Five Year Plans & NITI Aayog
Planning in India: Five Year Plans (1951-2017) guided economic development. Replaced by NITI Aayog (National Institution for Transforming India).
Planning Commission to NITI Aayog
Evolution of Planning in India
Planning Commission (1950-2014) formulated Five Year Plans. NITI Aayog (2015 onward) focuses on cooperative federalism and sustainable development.
| Plan | Period | Focus/Theme | Target Growth | Achieved Growth |
|---|---|---|---|---|
| First | 1951-56 | Agriculture, irrigation, power | 2.1% | 3.6% |
| Second | 1956-61 | Industrialization, Mahalanobis model | 4.5% | 4.2% |
| Third | 1961-66 | Self-reliance, agriculture | 5.6% | 2.8% (wars) |
| Annual Plans | 1966-69 | Plan holiday (drought, wars) | - | - |
| Fourth | 1969-74 | Growth with stability, Garibi Hatao | 5.7% | 3.3% |
| Fifth | 1974-78 | Poverty removal, self-reliance | 4.4% | 4.8% |
| Rolling Plan | 1978-80 | Janata Party government | - | - |
| Sixth | 1980-85 | Poverty removal, infrastructure | 5.2% | 5.7% |
| Seventh | 1985-90 | Food, work, productivity | 5.0% | 6.0% |
| Annual Plans | 1990-92 | Economic crisis, reforms | - | - |
| Eighth | 1992-97 | Human development, reforms | 5.6% | 6.8% |
| Ninth | 1997-2002 | Growth with social justice | 6.5% | 5.5% |
| Tenth | 2002-07 | Inclusive growth, reforms | 8.0% | 7.7% |
| Eleventh | 2007-12 | Faster & more inclusive growth | 9.0% | 8.0% |
| Twelfth | 2012-17 | Faster, sustainable, inclusive | 8.0% | 7.0% (approx) |
1 NITI Aayog (National Institution for Transforming India)
Chairperson: Prime Minister
Vice Chairperson: Appointed by PM
Governing Council: All Chief Ministers + Lt. Governors
Full-time Members: Experts in various fields
Key Differences from Planning Commission:
• Think tank vs directive body
• Cooperative federalism vs top-down approach
• No allocation of funds to states (Finance Ministry does)
• Focus on sustainable development goals
• Digital data-driven governance
Initiatives: Atal Innovation Mission, Aspirational Districts, SDG India Index
2 Important Plan Models & Concepts
Gadgil Formula: Central assistance to states
Garibi Hatao (4th Plan): Poverty eradication slogan
Rolling Plan (1978-80): Flexible annual revisions
Liberalization (8th Plan): 1991 economic reforms
Inclusive Growth (11th Plan): Broad-based development
Bombay Plan (1944): By Indian industrialists for planned economy
People's Plan (1945): By M.N. Roy focusing on agriculture
Gandhian Plan (1944): By S.N. Agarwal focusing on villages
Solved Example: Five Year Plans
"Garibi Hatao" means "Remove Poverty"
Famous slogan associated with Indira Gandhi in early 1970s
Became central theme of her political campaign
Step 2: Recall historical context
1971 General Elections: Indira Gandhi used "Garibi Hatao" as main slogan
Contrasted with opposition's "Indira Hatao" (Remove Indira)
She won with massive majority
Then implemented policies focused on poverty removal
Step 3: Identify which plan period
Indira Gandhi was Prime Minister during:
• 1966-1977 (including Fourth and Fifth Plans)
• 1980-1984 (Sixth Plan)
"Garibi Hatao" was early 1970s slogan
Fourth Plan: 1969-1974
This aligns with "Garibi Hatao" campaign period
Step 4: Fourth Plan details
Fourth Five Year Plan (1969-1974)
Theme: "Growth with stability" and "progressive achievement of self-reliance"
Focus: Agriculture, poverty removal
Drafting: Started under Morarji Desai, implemented under Indira Gandhi
Actual slogan "Garibi Hatao" was political but associated with this plan's focus
Step 5: Eliminate other plans
• Third Plan (1961-66): Before Indira Gandhi, focused on self-reliance after wars
• Fifth Plan (1974-78): Had poverty removal focus but "Garibi Hatao" specifically associated with 1971 elections
• Sixth Plan (1980-85): Poverty removal but slogan was earlier
• Seventh Plan (1985-90): Focus on food, work, productivity
Step 6: Additional facts
Fourth Plan target growth: 5.7%
Achieved growth: 3.3% (lower due to Bangladesh war, oil crisis, inflation)
Notable: Bank nationalization (1969) happened just before this plan
Green Revolution was ongoing during this period
Final Answer: Fourth Five Year Plan (1969-1974)
9. SSC Shortcuts & Memory Techniques
Exam Strategy: Polity & Economy have many facts, dates, articles. Use these techniques to remember effectively.
Memory Techniques for Polity & Economy
Remembering Facts & Figures
Use mnemonics, acronyms, and associations to remember numerous articles, amendments, and economic terms.
Mnemonics for Articles
14-18: Equality (EQUAL)
19-22: Freedom (FREE)
23-24: Against Exploitation (AXE)
25-28: Religion (REL)
29-30: Cultural & Educational (CE)
32: Remedies (R)
DPSP Articles (36-51):
36-51: Just remember range
Key: 39A (equal justice), 40 (panchayats), 44 (UCC), 48A (environment)
Emergency (352-360):
352: National, 356: President's Rule, 360: Financial
Amendment Acronyms
Socialist, Secular, Integrity + Fundamental Duties
44th (1978): D.E.M
Democratic restoration, Emergency modifications
52nd (1985): A.D.L
Anti-Defection Law
73rd/74th (1992): P.M
Panchayati Raj, Municipalities
86th (2002): R.T.E
Right To Education
101st (2016): G.S.T
Goods and Services Tax
Economic Numbers
Primary: ~15%, Secondary: ~25%, Tertiary: ~60%
Inflation Target: 4% ± 2%
RBI's mandate under Monetary Policy Framework
Fiscal Deficit Target: 3% of GDP (FRBM Act)
But often higher in practice
Bank Rates:
CRR: 4.5%, SLR: 18% (approx)
Repo: 6.5%, Reverse Repo: 3.35% (example)
GST Slabs: 0, 5, 12, 18, 28%
Time Management
• Direct fact recall: 30 sec
• Article/amendment: 45 sec
• Analytical: 60 sec
Economy Questions: 45-60 seconds
• Term definition: 30 sec
• Current figure: 45 sec
• Concept application: 60 sec
Strategy:
• Easy factual: Do first
• Analytical: Do next
• Current affairs: Do if sure
• Guess if >90 sec without progress
Total: 10-12 minutes for 8-10 questions
SSC Shortcut: Common Question Patterns
Pattern 1: "Which article deals with..." (FR, DPSP, emergency)
Pattern 2: "Which amendment added/removed..." (42nd, 44th, 73rd, 86th)
Pattern 3: "Who is the chairman of..." (committees, constitutional bodies)
Pattern 4: "What is the term of..." (President, PM, judges, MPs)
Pattern 5: "Which act introduced..." (dyarchy, federalism, GST)
Pattern 6: "What is the current..." (GDP growth, inflation, fiscal deficit)
Pattern 7: "Which committee recommended..." (poverty line, banking reforms, tax)
Memory tip: Practice each pattern with previous year questions
10. Practice Exercises
Hands-on Practice: Apply what you've learned with these SSC-level questions.
Interactive Practice Questions
Practice Approach
Time yourself: 60 seconds per question. Apply elimination technique for factual questions.
Practice Question 1: Polity Basics
Practice Question 2: Economy Basics
Practice Question 3: Important Acts
SSC Shortcut: Practice Strategy
Daily practice: 10 polity + 10 economy questions daily
Revision cycle: Revise articles/amendments weekly
Current affairs: Monthly update on economic indicators
Previous papers: Solve last 5 years' SSC polity-economy questions
Mixed practice: Practice all topics randomly to avoid pattern recognition
Time management: Aim for 45 seconds per factual question, 60 seconds per analytical question
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Frequently Asked Questions
Q1: How many polity & economy questions in SSC CGL?
Answer: Typically 8-12 questions in Tier I. Polity: 4-6 questions (Constitution, parliament, rights). Economy: 4-6 questions (basic concepts, budget, schemes).
Q2: What are the most important articles to remember?
Answer: Article 14-35 (FR), 32 (remedies), 74 (Council of Ministers), 76 (Attorney General), 123 (ordinances), 324 (Election Commission), 352-360 (emergency), 368 (amendment).
Q3: How to remember all amendments?
Answer: Focus on: 42nd (1976, Mini-Constitution), 44th (1978, democratic restoration), 52nd (1985, anti-defection), 73rd/74th (1992, local governance), 86th (2002, education), 101st (2016, GST).
Q4: What economic terms are most frequently asked?
Answer: GDP, inflation (CPI/WPI), fiscal deficit, repo rate, GST, poverty line, unemployment types, banking terms (CRR, SLR, NPA).
Q5: How to prepare for current affairs in polity & economy?
Answer: Follow: Recent amendments, important bills passed, economic survey highlights, budget key figures, RBI monetary policy decisions, new government schemes.
Q6: Best way to improve polity & economy score?
Answer: 1) Learn structure first (Constitution parts, economic sectors), 2) Memorize key numbers (articles, years, percentages), 3) Practice MCQs daily, 4) Revise monthly, 5) Follow current affairs.
Final Exam Strategy for Polity & Economy
Time Allocation: Total 12-15 minutes for 8-12 questions.
Priority Order: 1) Direct factual questions, 2) Article/amendment questions, 3) Economic term definitions, 4) Analytical/current affairs questions.
Accuracy Check: For polity, verify article numbers. For economy, verify current figures (if asked).
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