MCQs
1. In which year planning commission was set up?
1968 A.D.
1961 A.D.
1963 A.D.
1956 A.D.
Show me the answer
Answer: 4. 1956 A.D.
Explanation:
The National Planning Commission (NPC) of Nepal was established in 1956 AD (2013 BS).
Key historical context:
Established during the reign of King Mahendra
Modeled after India's Planning Commission
Originally called the "Planning Board"
First Chairman: King Mahendra himself
First Vice-Chairman: Dr. Bhekh Bahadur Thapa
The NPC was created to formulate and implement national development plans and coordinate development activities.
2. When was first five-year plan introduced?
2013 B.S.
2008 B.S.
2017 B.S.
2019 B.S.
Show me the answer
Answer: 1. 2013 B.S.
Explanation:
Nepal's First Five-Year Plan was implemented from 2013 BS to 2018 BS (1956-1961 AD).
Key features of the First Five-Year Plan:
Duration: 2013-2018 BS (1956-1961 AD)
Total budget allocation: Rs. 33 Crore
Main focus: Infrastructure development (roads, transportation, communication)
Economic growth target: 2.7% per annum (achieved 2.4%)
Emphasized agriculture and transportation sectors
This marked the beginning of systematic economic planning in Nepal.
3. Planning Commission of Nepal is a/an ______
It is a Ministry
It is an advisory body
It is a Government body
Constitutional body
Show me the answer
Answer: 2. It is an advisory body
Explanation:
The National Planning Commission (NPC) of Nepal is primarily an advisory body:
Advises the government on development policies and strategies
Formulates periodic plans (Five-Year Plans, Annual Plans)
Monitors and evaluates development programs
Coordinates with ministries and development partners
Important characteristics:
Not a ministry: It doesn't implement programs directly
Not a constitutional body: Established by executive decision, not constitutional provision
Statutory body: Functions under specific legislation and regulations
Advisory role: Provides recommendations to the Council of Ministers
4. The basic objectives of planning of Nepal are:
Economic growth
Affluent self-reliant
Employment generation
Population growth
Options:
1, 2 and 4
1, 2 and 3
2 and 3
1, 2, 3 and 4
Show me the answer
Answer: 2. 1, 2 and 3
Explanation:
The basic objectives of planning in Nepal typically include:
Economic growth: Increasing GDP and national income
Self-reliance: Reducing dependency on foreign aid (affluent self-reliant economy)
Employment generation: Creating job opportunities
Population growth is not an objective of planning:
Population growth is a demographic phenomenon
Planning aims to manage population growth's effects
Some plans aim to reduce population growth rate
It's a factor to be considered, not an objective to be achieved
Other common planning objectives: Poverty reduction, social justice, sustainable development, regional balance.
5. On the basis of Ideology, what kinds of planning is/are adopted in Nepal
Capitalistic planning
Socialistic planning
Mixed planning
All of above
Show me the answer
Answer: 4. All of above
Explanation:
Nepal has adopted different planning ideologies at different times:
Capitalistic planning (1950s-early 1960s):
Emphasis on private sector development
Market-oriented approaches
Limited government intervention
Socialistic planning (Panchayat period, 1960-1990):
State-led development
Nationalization of key industries
Centralized planning
Emphasis on equity and social justice
Mixed planning (1990-present):
Combination of market mechanisms and state intervention
Public-private partnership
Liberalization with social safeguards
Currently dominant approach
Nepal's planning has evolved with political and economic changes.
6. Which of the following criteria for the evaluation of planning deals most with whether the program achieves its goals or not?
Efficiency
Adequacy
Effectiveness
Economy
Show me the answer
Answer: 3. Effectiveness
Explanation:
Evaluation criteria in planning:
Effectiveness: Degree to which objectives are achieved
Answers: "Are we achieving what we intended?"
Focuses on goal attainment
Measures outcomes against objectives
Efficiency: Relationship between inputs and outputs
Answers: "Are we using resources wisely?"
Focuses on cost-benefit ratio
Economy: Minimizing cost of resources used
Answers: "Are we getting resources at lowest cost?"
Adequacy: Sufficiency of program to meet needs
Effectiveness is specifically about goal achievement, making it the correct answer.
7. Which of the following is not a factor(s) when classifying a plan on time-frame?
Annual planning
Short-term planning
Perspective planning
Inducement planning
Show me the answer
Answer: 4. Inducement planning
Explanation:
Classification by time-frame includes:
Perspective/Long-term planning (10+ years):
Vision documents
Long-term development goals
Medium-term planning (3-7 years):
Five-Year Plans
Sectoral plans
Short-term planning (1-2 years):
Annual plans
Budgets
Action plans
Inducement planning is not a time-based classification:
Refers to planning that encourages certain behaviors
Based on incentives and disincentives
Classified by approach/method, not time-frame
Examples: Tax incentives for investment, subsidies for specific sectors
8. Which one is not the process of planning?
Setting objectives or goals
Developing planning premises or assumption
Mobilization of resources
Evaluation of alternative course
Show me the answer
Answer: 3. Mobilization of resources
Explanation:
The planning process typically includes:
Setting objectives: Defining what to achieve
Developing premises: Making assumptions about future conditions
Identifying alternatives: Generating possible courses of action
Evaluating alternatives: Assessing pros and cons of each option
Selecting alternatives: Choosing the best option
Formulating derivative plans: Creating supporting plans
Implementing plans: Putting plans into action
Follow-up/evaluation: Monitoring and adjusting
Mobilization of resources is part of implementation, not the planning process itself:
Planning ends with decision-making
Implementation begins with resource mobilization
Resource allocation is considered during planning, but actual mobilization happens during implementation
9. The main responsible body for formulating planning is/are
Council of Ministers
National Planning Commission (NPC)
National Development Council (NDC)
All of above
Show me the answer
Answer: 4. All of above
Explanation:
Planning formulation involves multiple bodies:
National Planning Commission (NPC):
Primary technical body for plan formulation
Conducts research and analysis
Prepares draft plans
National Development Council (NDC):
Highest policy-making body for development
Chaired by Prime Minister
Approves periodic plans
Includes Chief Ministers, experts, stakeholders
Council of Ministers:
Final approval of plans
Provides political direction
Allocates resources through budget
All three bodies play crucial roles in Nepal's planning process.
10. Which of the following is not a feature of Nepalese Planning?
Development planning
Economic planning
Indicative planning
Centralized planning
Show me the answer
Answer: 4. Centralized planning
Explanation:
Features of Nepalese planning:
Development planning: Focus on socio-economic development
Economic planning: Resource allocation for economic goals
Indicative planning: Sets targets without mandatory compliance
Centralized planning is NOT a current feature:
Historically practiced during Panchayat era (1960-1990)
Since 1990, planning has become more decentralized
Post-2015 constitution: Three-tier planning (federal, provincial, local)
Current approach: Participatory and decentralized planning
Local governments now prepare their own plans
11. The task of Planning Commission of Nepal is/are
Backing up the plan
Preparation of the plan
Monetization the plan
All of the above
Show me the answer
Answer: 2. Preparation of the plan
Explanation:
Primary tasks of NPC include:
Preparation/formulation of plans: Main responsibility
Monitoring and evaluation: Tracking implementation
Policy advice: Recommending development policies
Coordination: Among ministries and stakeholders
NOT primary tasks:
Backing up plans: Implementation is done by line ministries
Monetization: Budget allocation is Finance Ministry's responsibility
Implementation: Carried out by respective agencies
NPC's role is primarily advisory and coordinative, not executive.
12. The task of Planning Commission of Nepal is/are to formulate
A national vision
Periodic plan
Sectoral policies
All of these
Show me the answer
Answer: 4. All of these
Explanation:
NPC formulates various types of plans and policies:
National vision documents:
Long-term development vision (e.g., Nepal Vision 2030)
Sustainable Development Goals (SDGs) framework
Periodic plans:
Five-Year Plans (current: 16th Plan)
Annual plans
Medium-term expenditure framework
Sectoral policies:
Agriculture policy
Industrial policy
Education policy
Health policy
Other formulations:
Project proposals
Development strategies
Monitoring frameworks
13. Which of the following statement(s) is/are correct?
Planning Commission is a constitutional body.
The Prime Minister is the Chairman of the Planning Commission.
Options:
Both 1 & 2
Only 1
Only 2
Neither 1 nor 2
Show me the answer
Answer: 3. Only 2
Explanation:
Statement analysis:
"Planning Commission is a constitutional body": FALSE
NPC is not mentioned in Nepal's constitution
Established by executive decision (1956)
Functions under Planning Commission Act
Constitutional bodies are specifically listed in Constitution (Article 292)
"The Prime Minister is the Chairman of the Planning Commission": TRUE
PM serves as ex-officio Chairman of NPC
This has been consistent practice since establishment
PM provides political leadership and direction
Day-to-day operations handled by Vice-Chairman
Therefore, only statement 2 is correct.
14. Which of the following Nodal institution for the implementation of sustainable development goals in Nepal?
Ministry of Forest & soil conservation
Ministry of poverty alleviation & land reforms
National planning commission
National Statistics Office
Show me the answer
Answer: 3. National planning commission
Explanation:
NPC is the nodal agency for SDGs in Nepal:
Responsible for mainstreaming SDGs into national plans
Coordinates SDG implementation across ministries
Prepares voluntary national reviews (VNRs)
Monitors SDG indicators and progress
Liaises with UN agencies and development partners
Other institutions have supporting roles:
National Statistics Office: Data collection for SDG indicators
Line ministries: Implement sector-specific SDG targets
Local governments: Localize SDG implementation
NPC's SDG section specifically handles coordination and monitoring.
15. Who appoints the vice-chairperson of the Planning Commission?
President
Finance Minister
Prime Minister
Deputy PM
Show me the answer
Answer: 3. Prime Minister
Explanation:
Appointment process for NPC Vice-Chairperson:
Appointed by: Prime Minister
On recommendation of: Prime Minister's Office
Approval required: Council of Ministers
Tenure: Co-terminus with Prime Minister (usually)
Constitutional and legal basis:
NPC Vice-Chairperson is a political appointment
Not a constitutional position
Functions under PM's direction
Can be removed by PM
Role of Vice-Chairperson:
Chief executive of NPC
Responsible for day-to-day operations
Leads technical work of plan formulation
Represents NPC in various forums
16. Who amongst the following is the chairperson of National Planning Commission?
The president
The finance minister
The prime minister
Deputy prime minister
Show me the answer
Answer: 3. The prime minister
Explanation:
Prime Minister serves as ex-officio Chairman of NPC:
Consistent practice since NPC's establishment in 1956
Provides political leadership to planning process
Chairs National Development Council meetings
Approves final plans for implementation
Represents Nepal in international development forums
Historical context:
During monarchy: King served as Chairman
After democracy restoration: PM became Chairman
Current practice: PM chairs, VC handles daily operations
This arrangement ensures political commitment to development plans.
17. Who is the Chairperson of Steering Committee of Periodic plan?
PM
DPM
Ministry of Finance
VC of planning Commission
Show me the answer
Answer: 4. VC of planning Commission
Explanation:
Steering Committee for periodic plans:
Chairperson: Vice-Chairperson of NPC
Members: Representatives from key ministries, experts, stakeholders
Purpose: Guides plan formulation process
Functions:
Reviews draft plans
Provides technical guidance
Resolves inter-ministerial issues
Ensures plan quality and coherence
Why VC chairs:
VC is technical head of NPC
Has expertise in planning matters
Can dedicate time to detailed oversight
PM chairs higher-level NDC, not steering committee
18. Who will be the ex-officio member of the National Planning Commission of Nepal? (PSC: 2080)
Secretary, National Planning Commission
Chief Secretary, Government of Nepal
Secretary, Ministry of Finance
Both c and d
Show me the answer
Answer: 4. Both c and d
Explanation:
Ex-officio members of NPC typically include:
Chief Secretary: Highest-ranking civil servant
Finance Secretary: Key for resource allocation
Other key secretaries: As needed (e.g., Foreign, Federal Affairs)
Rationale for ex-officio membership:
Chief Secretary: Coordinates entire bureaucracy
Finance Secretary: Ensures plan-budget alignment
Provides administrative continuity
Facilitates inter-ministerial coordination
Ensures practical feasibility of plans
NPC Secretary is not ex-officio member, but serves as Member Secretary.
19. When was the first budget of Nepal presented?
2008 B.S.
2013 B.S.
2026 B.S.
2033 B.S.
Show me the answer
Answer: 1. 2008 B.S.
Explanation:
First formal budget presented in 2008 BS (1951 AD):
Presented by Finance Minister Subarna Shamsher Rana
Amount: Rs. 11.77 million
Period covered: 2008 BS fiscal year
Context: After fall of Rana regime, during transitional government
Historical context:
Before 1951: No systematic budgeting
Rana period: Ad hoc financial management
Post-1951: Beginning of modern budgeting
First budget marked transition to democratic financial management
Key features of first budget:
Focus on administrative expenses
Limited development allocation
Heavy reliance on land revenue
20. The first finance minister to present budget in Nepal was
Subarna Shamsher
Matrika Prasad Koirala
Dr. K.I. Singh
Dr. Bhekha Bahadur Thapa
Show me the answer
Answer: 1. Subarna Shamsher
Explanation:
First Finance Minister: Subarna Shamsher Rana
Historical details:
Served as Finance Minister in 1951 interim government
Presented first budget on Falgun 7, 2008 BS (February 1952)
Member of Rana family but supported democracy movement
Also served as Prime Minister briefly
Other notable firsts:
First elected government's finance minister: Matrika Prasad Koirala
First finance minister after 1990 democracy: Mahesh Acharya
First finance minister of federal Nepal: Dr. Yubaraj Khatiwada
21. Which of the following is/are the objective(s) of Budget?
To achieve economic growth, economic stability and economic development
To implement the plans and programs
To maintain financial control
All of the above
Show me the answer
Answer: 4. All of the above
Explanation:
Budget serves multiple objectives:
Economic objectives:
Promote economic growth
Maintain economic stability (control inflation)
Achieve economic development (structural transformation)
Implementation objective:
Financial translation of plans and programs
Allocate resources for plan implementation
Ensure program financing
Control objectives:
Financial control over expenditures
Prevent misuse of public funds
Ensure accountability and transparency
Other objectives:
Resource mobilization (taxation, borrowing)
Income redistribution (progressive taxation, subsidies)
Regional balance (equitable resource allocation)
22. Which one of the following is responsible for the preparation and presentation of federal budget to the parliaments?
Department of Revenue
Ministry of Finance
National planning Commissions
Nepal Rastra Bank
Show me the answer
Answer: 2. Ministry of Finance
Explanation:
Ministry of Finance (MoF) has primary responsibility for budget:
Budget preparation:
Collects expenditure proposals from ministries
Estimates revenue collection
Formulates fiscal policies
Prepares budget speech and documents
Budget presentation:
Finance Minister presents to Parliament
Usually on Jestha 15 (May 29)
Follows constitutional timeline (Article 119)
Coordination role:
Works with NPC for plan-budget alignment
Coordinates with NRB for monetary-fiscal coordination
Consults with private sector and stakeholders
Other institutions' roles:
NPC: Provides plan framework
NRB: Advises on monetary aspects
Revenue Department: Estimates tax revenue