Multiple choice

Which one among the following is responsible for all policy issues pertaining to external aid received by the Government of India?

  1. Planning Commission

  2. Department of Economic Affairs, Government of India

  3. Department of Revenue, Government of India

  4. Finance commission

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Department of Economic Affairs (DEA) under the Ministry of Finance is responsible for all policy issues pertaining to external aid, international borrowing, and foreign investment. It handles negotiations with multilateral institutions like World Bank and IMF, and bilateral aid agencies. The Planning Commission (now NITI Aayog) dealt with planning, not aid policy. Department of Revenue handles taxation. Finance Commission deals with center-state financial relations, not external aid.

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