DAILY CURRENT AFFAIRS QUIZ – 4 February, 2026

Explanation:
Unconditional cash transfers can strain public finances. They may reduce fiscal space for productive capital spending. Persistent transfers can also fuel inflation. The Survey advocates balanced welfare with growth-oriented spending. Therefore, fiscal and inflationary risks are central concerns.

Explanation:
The FTA reduces overdependence on a few major economies. It helps diversify markets and supply chains. Strategic autonomy in trade is enhanced. The agreement also promotes technology and investment flows. Hence, diversification is the key strategic benefit.

Explanation:
AI applications directly impact productivity, governance, and service delivery. Frontier models are capital-intensive and limited to a few firms. India’s policy focus is on scalable, inclusive AI use. This supports economic inclusion and digital governance. Therefore, practical innovation is prioritised.

Explanation:
Tax devolution is the main fiscal lifeline for States. Any reduction or conditionality affects State autonomy and welfare spending. The Finance Commission’s recommendations shape Centre–State fiscal relations. States fear erosion of cooperative federalism. Hence, tax devolution concerns dominate.

Explanation:
Data protection and user privacy are core governance concerns in the digital age. Judicial scrutiny enhances accountability of tech platforms. Transparency in data usage safeguards citizens’ rights. This also complements legislative frameworks like the DPDP Act. Thus, transparency and accountability are reinforced.