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Public Finance - Budget and Taxation PYQs – Economics, SSC & Railway

236 Public Finance - Budget and Taxation (Economics) questions asked in recent SSC and Railway exams, newest first, with exam, date & shift, answers and solutions.

📚 236 questionsSSC 134 · Railway 102
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SSC Stenographer 2026 – 12 September 2026 Shift 1 · Union Budget - latest highlights

Q1. As per the Union Budget 2025-26, what is India's fiscal deficit target (as % of GDP) for FY 2025-26?

  1. (a) 2.50%
  2. (b) 4.40%
  3. (c) 6.50%
  4. (d) 3.10%
Answer & solution

Answer: (b) 4.40%

Answer: Option 2 — 4.40%
The Union Budget 2025-26, presented by Nirmala Sitharaman on 1 February 2025, set the fiscal deficit at 4.4 per cent of GDP for 2025-26, down from 4.8 per cent (revised estimate) in 2024-25.
Revision note — Fiscal deficit and the Budget 2025-26
• Fiscal deficit = total expenditure − total receipts excluding borrowings; it is the amount the government must borrow in the year.
• Revenue deficit = revenue expenditure − revenue receipts; primary deficit = fiscal deficit − interest payments.
• Path of the Centre's fiscal deficit: 9.2 per cent in 2020-21 (pandemic peak), 6.4 per cent in 2022-23, 5.6 per cent in 2023-24, 4.8 per cent in 2024-25 (RE), 4.4 per cent in 2025-26 (BE).
• From 2026-27 the Centre will steer by a debt-to-GDP anchor — about 50 per cent (±1) by 31 March 2031 — instead of a fixed deficit number.
• The FRBM Act 2003 set a fiscal-deficit ceiling of 3 per cent of GDP for the Centre and required the revenue deficit to be eliminated.
• Budget 2025-26 was Sitharaman's 8th consecutive budget; it made income up to ₹12 lakh tax-free under the new regime and put total expenditure at about ₹50.65 lakh crore.
Do not mix these up
• Fiscal deficit vs revenue deficit — the fiscal deficit counts all spending, including capital; the revenue deficit covers only day-to-day (revenue) spending.
• Fiscal deficit vs primary deficit — the primary deficit strips out interest on past borrowing, so it shows the deficit created by this year's decisions alone.
Also asked from this topic: the fiscal deficit target for FY 2025-26 (4.4 per cent of GDP); the FRBM ceiling on the Centre's fiscal deficit (3 per cent of GDP).
SSC Stenographer 2026 – 12 September 2026 Shift 2 · Indirect taxes and GST

Q2. What was the primary rationale behind introducing the Value Added Tax (VAT) system in India in the early 2000s, and how did it address the inefficiencies of the earlier sales tax regime?

  1. (a) VAT was designed to increase tax rates and reduce state autonomy in taxation
  2. (b) VAT replaced customs duties and allowed the Centre to collect direct taxes for states
  3. (c) VAT introduced a multi-point taxation system that minimized the cascading effect of taxes and promoted input tax credit across the supply chain
  4. (d) VAT ensured uniform pricing of agricultural produce and abolished excise duties
Answer & solution

Answer: (c) VAT introduced a multi-point taxation system that minimized the cascading effect of taxes and promoted input tax credit across the supply chain

Answer: Option 3 — VAT introduced a multi-point taxation system that minimized the cascading effect of taxes and promoted input tax credit across the supply chain
Under the old sales tax, tax was charged on the full price at every sale, so tax was paid on tax already paid — the cascading effect.
VAT taxes only the value added at each stage: the seller deducts the tax already paid on inputs (input tax credit), so the final burden equals a single tax on the final price.
Revision note — VAT in India
• State VAT replaced state sales tax from 1 April 2005 in 21 states; Haryana had led the way in 2003 and Uttar Pradesh was the last to join in 2008.
• It was designed by the Empowered Committee of State Finance Ministers, chaired by Dr Asim Dasgupta, the Finance Minister of West Bengal.
• Rates were kept simple: 4 per cent (later 5 per cent) on essentials and industrial inputs, 12.5 per cent as the general rate, and 1 per cent on gold, silver and precious stones.
• At the Centre, the same idea had come earlier as MODVAT (1986) on excise duty, renamed CENVAT in 2000, and service tax was introduced in 1994.
• Sales tax vs VAT: sales tax is a single-point levy with no credit; VAT is a multi-point levy with set-off of input tax, so it is self-policing — every buyer wants an invoice to claim credit.
• On 1 July 2017 the Goods and Services Tax subsumed state VAT, central excise and service tax; VAT still applies only to petroleum products and alcohol for human consumption.
Do not mix these up
• VAT vs GST — VAT was a state tax on goods only, with no credit across state borders; GST is a dual, destination-based tax on goods and services with a seamless credit chain across India.
• Cascading vs double taxation — cascading is tax on tax along a supply chain; double taxation is the same income being taxed twice by two authorities.
Also asked from this topic: why states adopted VAT in 2005 (to minimise the cascading effect of indirect taxes); the single CENVAT rate of 2001–02 (16 per cent); the date GST was launched (1 July 2017).
SSC Stenographer 2026 – 12 September 2026 Shift 2 · Indirect taxes and GST

Q3. Which of the following fiscal reforms post-1991 played the most crucial role in improving tax efficiency and expanding the tax base in India?

  1. (a) Nationalization of banks
  2. (b) Introduction of Value Added Tax (VAT) and later the Goods and Services Tax (GST)
  3. (c) Increase in agricultural subsidies
  4. (d) Abolition of wealth tax
Answer & solution

Answer: (b) Introduction of Value Added Tax (VAT) and later the Goods and Services Tax (GST)

Answer: Option 2 — Introduction of Value Added Tax (VAT) and later the Goods and Services Tax (GST)
The post-1991 tax strategy was lower rates, fewer exemptions, wider base — and its centrepiece on the indirect side was the move from sales tax to VAT (2005) and then to GST (2017).
Bank nationalisation belongs to 1969 and 1980, subsidies widen spending rather than the tax base, and the wealth tax was a tiny levy whose abolition in 2015 hardly changed collections.
Revision note — Tax reforms after 1991
• The Tax Reforms Committee (1991) under Raja J. Chelliah recommended moderate rates, a broader base and simpler laws; its reports came in 1992–93.
• Direct taxes: income tax slabs were cut to three rates with a top rate of 30 per cent in the 1997–98 "Dream Budget" of P. Chidambaram; corporate tax was lowered and PAN made compulsory.
• Indirect taxes: the peak customs duty fell from over 300 per cent in 1991 to 10 per cent by 2007–08.
• MODVAT credit was widened and became CENVAT (2000); service tax began in 1994 on three services.
• State VAT replaced sales tax from 1 April 2005; the Kelkar Task Forces (2002) proposed a national GST, first announced in the 2006–07 Budget by P. Chidambaram.
• GST came through the Constitution (101st Amendment) Act, 2016 — Articles 246A, 269A and 279A — and was launched on 1 July 2017 as One Nation, One Tax.
• The GST Council under Article 279A is chaired by the Union Finance Minister.
• Direct tax collections and the number of income-tax filers have grown many times since 1991, the clearest sign of a widening base; the FRBM Act, 2003 added the fiscal discipline side of the reform.
Do not mix these up
• Tax base vs tax rate — the base is the number of taxpayers and transactions covered; the rate is the percentage charged. Post-1991 reforms cut rates to widen the base.
• Wealth tax vs estate duty — wealth tax (1957) was abolished in the 2015–16 Budget and replaced by a 2 per cent surcharge on the super-rich; estate duty had already gone in 1985.
Also asked from this topic: the chairman of the Tax Reforms Committee, 1991 (Raja J. Chelliah); when the Kelkar task force was set up (2002–03); the amendment that brought GST (101st Amendment Act, 2016).
SSC Stenographer 2026 – 10 September 2026 Shift 1 · FRBM Act and fiscal policy

Q4. Which fiscal policy tool is used by governments to influence aggregate demand?

  1. (a) Repo rate
  2. (b) Taxation & government spending
  3. (c) Statutory Liquidity Ratio
  4. (d) Bank rates
Answer & solution

Answer: (b) Taxation & government spending

Answer: Option 2 — Taxation & government spending
Fiscal policy is the government's own instrument — it works through the Budget, by changing tax rates and public expenditure.
The repo rate, SLR and bank rate are monetary tools, and they belong to the Reserve Bank of India.
Revision note — Fiscal policy versus monetary policy
• Fiscal policy is run by the Ministry of Finance through the Budget — tax rates, subsidies, transfer payments and government spending.
• Expansionary fiscal policy — more spending, lower taxes — raises aggregate demand and is used during a recession.
• Contractionary fiscal policy — less spending, higher taxes — lowers aggregate demand and is used to curb inflation.
• Monetary policy is run by the RBI through the repo rate, reverse repo, CRR, SLR, bank rate and MSF; the Monetary Policy Committee has 6 members and the Governor holds a casting vote.
• Pushing demand beyond the economy's capacity produces demand-pull inflation; a fall in aggregate demand during a downturn produces cyclical unemployment.
• The FRBM Act, 2003 disciplines fiscal policy, aiming to cut the fiscal deficit and wipe out the revenue deficit.
• In the circular flow of income, imports are a leakage that lowers aggregate demand and exports are an injection that raises it.
Do not mix these up
• Fiscal vs monetary policy — fiscal is the government's taxes and spending; monetary is the central bank's control of money supply and interest rates.
• Repo rate vs bank rate — the repo rate is short-term RBI lending against collateral with a repurchase agreement; the bank rate is longer-term lending without collateral and no repurchase.
Also asked from this topic: what a government does under contractionary fiscal policy (cuts spending or raises taxes); the policy used in a recession (expansionary fiscal policy); the aim of the FRBM Act (cut the fiscal deficit).
SSC Stenographer 2026 – 10 September 2026 Shift 2 · Direct taxes

Q5. In the context of India's fiscal policy in 2025, which of the following best describes the rationale behind imposing a windfall tax on certain sectors, and what are the potential economic implications of such a tax?

  1. (a) Windfall tax is levied on companies with consistent losses to boost government revenues without affecting market prices
  2. (b) Windfall tax targets excessive profits earned due to unforeseen external factors (like global commodity price spikes), aiming to redistribute gains; however, it may lead to reduced private investment and production if perceived as punitive or unpredictable
  3. (c) Windfall tax is a fixed annual tax on all corporations irrespective of their profitability to ensure uniform fiscal contribution
  4. (d) Windfall tax exclusively applies to the banking sector to regulate interest rate margins
Answer & solution

Answer: (b) Windfall tax targets excessive profits earned due to unforeseen external factors (like global commodity price spikes), aiming to redistribute gains; however, it may lead to reduced private investment and production if perceived as punitive or unpredictable

Answer: Option 2 — a tax on excessive profits from unforeseen external factors, which can deter private investment if seen as punitive
A windfall is a gain a firm did not earn by its own effort or efficiency — it falls into its lap when an outside shock, such as a global commodity price spike, lifts prices.
A windfall tax claws back part of that unearned gain; its cost is that an unpredictable levy weakens the incentive to invest and produce.
Revision note — Windfall tax in India
• India imposed its windfall tax on 1 July 2022, on domestic crude oil production and on exports of petrol, diesel and ATF, after the Russia-Ukraine war sent global crude prices up.
• It was levied as a Special Additional Excise Duty (SAED), and the rates were reviewed every fortnight against international crude prices.
• The government withdrew the windfall tax in December 2024 once crude prices softened — proof that it is a temporary, event-driven levy, not a permanent one.
• The idea is not only India's: the United Kingdom brought in an Energy Profits Levy in May 2022 on North Sea oil and gas producers.
• Under Article 265, no tax may be levied or collected except by authority of law, so even a windfall levy needs statutory backing.
• Economists defend it on the ability-to-pay principle and attack it for policy uncertainty, which raises the risk premium investors demand.
Do not mix these up
• Windfall tax vs corporation tax — corporation tax is a permanent levy on all company profits; a windfall tax is a one-off levy on abnormal profits from an external shock.
• Windfall tax vs cess and surcharge — a cess is raised for an earmarked purpose and a surcharge is a tax on tax; a windfall tax is defined by the source of the profit.
Also asked from this topic: whether corporation tax is a direct or an indirect tax (direct — a tax on company profits); the chairman of the 1991 Tax Reforms Committee (Raja J. Chelliah).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Union Budget - latest highlights

Q6. What is the estimated total government expenditure for India in 2025-26 according to the Budget?

  1. (a) ₹15 lakh crore
  2. (b) ₹40 lakh crore
  3. (c) ₹50.6 lakh crore
  4. (d) ₹75 lakh crore
Answer & solution

Answer: (c) ₹50.6 lakh crore

Answer: Option 3 — ₹50.6 lakh crore
The Union Budget 2025-26, presented on 1 February 2025, estimated total expenditure at about ₹50.65 lakh crore, which the paper rounds to ₹50.6 lakh crore.
Total receipts other than borrowings were put at about ₹34.96 lakh crore.
Revision note — Union Budget 2025-26
• Presented by Finance Minister Nirmala Sitharaman on 1 February 2025 — her eighth consecutive budget.
• Total expenditure about ₹50.65 lakh crore; total receipts other than borrowings about ₹34.96 lakh crore.
• Capital expenditure ₹11.21 lakh crore, roughly 3.1 per cent of GDP.
• Fiscal deficit for 2025-26 estimated at 4.4 per cent of GDP.
• Income up to ₹12 lakh made tax-free under the new regime (₹12.75 lakh for salaried taxpayers after the standard deduction).
• Announcements included a Maritime Development Fund of ₹25,000 crore, SWAMIH Fund 2 of ₹15,000 crore, a modified UDAN for 120 new destinations and 50,000 Atal Tinkering Labs in five years.
• Constitutional basis: Article 112 (Annual Financial Statement), Article 110 (Money Bill), Article 266 (Consolidated Fund), Article 267 (Contingency Fund).
Do not mix these up
• Total expenditure vs capital expenditure — ₹50.65 lakh crore against ₹11.21 lakh crore for 2025-26.
• Fiscal deficit vs revenue deficit — fiscal deficit is total expenditure minus total receipts excluding borrowings; revenue deficit is revenue expenditure minus revenue receipts.
Also asked from this topic: the total expenditure in the Union Budget 2025-26 (₹50.65 lakh crore, asked in 2026); the capital expenditure for 2025-26 (₹11.21 lakh crore, asked in 2026).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Union Budget - latest highlights

Q7. According to the 2025 budget, by what year does India aim to reduce central government debt to 50% of GDP?

  1. (a) March 2028
  2. (b) March 2029
  3. (c) March 2030
  4. (d) March 2031
Answer & solution

Answer: (d) March 2031

Answer: Option 4 — March 2031
The Budget of 1 February 2025 set a new fiscal anchor: keep central government debt on a declining path so that it reaches about 50 per cent of GDP by 31 March 2031.
From 2026-27 the Centre's target shifts from the annual fiscal deficit to this debt-to-GDP ratio.
Revision note — Fiscal consolidation and the deficits
• Target set in Budget 2025-26: central government debt of 50 ± 1 per cent of GDP by 31 March 2031.
• Fiscal deficit for 2025-26 estimated at 4.4 per cent of GDP, down from 4.8 per cent (RE) in 2024-25.
• Fiscal deficit = total expenditure − total receipts other than borrowings; it is the government's total borrowing requirement.
• Revenue deficit = revenue expenditure − revenue receipts. Primary deficit = fiscal deficit − interest payments.
• The FRBM Act, 2003 fixed the long-standing ceiling of a fiscal deficit of not more than 3 per cent of GDP.
• The FRBM Rules, 2004 required the Centre to cut the fiscal deficit by at least 0.3 per cent of GDP a year and the revenue deficit by 0.5 per cent a year.
• India's external debt was about 19.4 per cent of GDP at the end of September 2024 — a different figure from the Centre's liabilities.
Do not mix these up
• Fiscal deficit target vs debt-to-GDP target — 4.4 per cent of GDP for 2025-26 against 50 per cent of GDP by March 2031.
• External debt vs government debt — external debt is what the country owes abroad; the 50 per cent target covers the Centre's liabilities.
Also asked from this topic: the FRBM ceiling on the fiscal deficit (3 per cent of GDP); the annual cut in the FRBM Rules (0.3 per cent); external debt-to-GDP in September 2024 (19.4 per cent).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Budget-announced schemes and missions

Q8. What major 2025 reform now ranks Indian states on investment friendliness for EoDB?

  1. (a) State GDP growth rate
  2. (b) State SDG Index
  3. (c) State Investment Index
  4. (d) Universal Social Index
Answer & solution

Answer: (c) State Investment Index

Answer: Option 3 — State Investment Index
The Union Budget 2025-26 announced an Investment Friendliness Index of States — a state investment index — to rank states on how easy they make it to invest.
It carries forward, at the state level, the work the World Bank's Ease of Doing Business report once did between countries.
Revision note — Ease of Doing Business and the ranking of states
• It was announced in the Union Budget 2025-26, presented on 1 February 2025 by Finance Minister Nirmala Sitharaman, to be launched during 2025.
• Its stated purpose is competitive cooperative federalism — making states compete to attract investment.
• Before it, states were ranked by the Business Reforms Action Plan (BRAP) of DPIIT, first run in 2015, which scored states on reform points and on feedback from actual users.
• The World Bank's Doing Business report ranked economies on 10 indicator sets, each given equal weight.
• Those sets included starting a business, getting electricity, registering property, paying taxes, enforcing contracts and resolving insolvency.
• Getting Electricity measured the procedures, time and cost of a permanent power connection, and Enforcing Contracts the efficiency of the courts in a commercial dispute.
• India's last rank was 63rd out of 190 in the 2020 edition, up from 142nd in 2014.
• The World Bank discontinued Doing Business in September 2021 after an inquiry into data irregularities; its replacement is the B-READY (Business Ready) report.
• Doing Business surveyed only formal limited-liability firms in the largest business city, so the informal sector never entered the score — the main criticism of the method.
Do not mix these up
• Investment Friendliness Index vs BRAP — the new index was announced in the Union Budget 2025-26; BRAP is the older DPIIT reform scorecard for states.
• Doing Business vs B-READY — Doing Business is discontinued (2021); B-READY is the World Bank's new business-environment report.
Also asked from this topic: the year the World Bank discontinued the Ease of Doing Business report (2021); what 'Getting Electricity' measures (cost, time and procedures for a power connection); what 'Enforcing Contracts' measures (efficiency of the courts in commercial disputes).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Budget-announced schemes and missions

Q9. As per 2025, the UDAN scheme seeks to expand connectivity to how many new destinations?

  1. (a) 12
  2. (b) 50
  3. (c) 120
  4. (d) 250
Answer & solution

Answer: (c) 120

Answer: Option 3 — 120
The Union Budget 2025-26 announced a modified UDAN scheme to connect 120 new destinations and carry 4 crore passengers over the next 10 years.
Revision note — UDAN, the Regional Connectivity Scheme
• UDAN — Ude Desh ka Aam Nagrik — was launched on 21 October 2016 by the Ministry of Civil Aviation under the National Civil Aviation Policy, 2016.
• It works through Viability Gap Funding (VGF) paid to airlines that fly unserved and under-served routes, with a fare cap on about half the seats — originally ₹2,500 for a one-hour flight.
• The first UDAN flight took off on 27 April 2017 on the Shimla–Delhi route, flagged off by Prime Minister Narendra Modi.
• The money comes from a Regional Connectivity Fund, built from a small levy on certain scheduled domestic routes; states help by cutting VAT on ATF to 1 per cent and by providing land and security.
• Later rounds widened it — UDAN 3 added tourism and seaplane routes and UDAN 4 added helicopters and the North-East, hill states and islands.
• Krishi UDAN supports the air movement of perishable farm produce.
• The modified UDAN of Budget 2025-26 also covers helipads and small airports in hilly, aspirational and North-East districts.
Do not mix these up
• UDAN vs Krishi UDAN — UDAN subsidises passenger seats on regional routes; Krishi UDAN supports air cargo of perishable agricultural produce.
• UDAN vs the National Civil Aviation Policy — the policy (2016) is the parent document; UDAN is the regional connectivity scheme launched under it.
Also asked from this topic: the new destinations under the modified UDAN of Budget 2025-26 (120); how UDAN improves regional connectivity (viability gap funding to airlines); the year it was launched (2016).
RRB Group D 2025-26 – 25 August 2026 Shift 1 · Union Budget - latest highlights

Q10. What is the total corpus allocated for the newly proposed SME Growth Fund introduced in the Union Budget 2026–27 to support high-potential enterprises?

  1. (a) ₹5,000 crore
  2. (b) ₹10,000 crore
  3. (c) ₹2,000 crore
  4. (d) ₹15,000 crore
Answer & solution

Answer: (b) ₹10,000 crore

Correct Answer:
Correct Answer: Option 2 – ₹10,000 crore
Explanation:
TheUnion Budget 2026-27introduced a newSME Growth Fundwith a total corpus of₹10,000 croreto support high-potential small and medium enterprises.
Important Facts:
• The fund aims to boost jobs, manufacturing and exports for the MSME sector.
• It forms part of a broader package of liquidity and credit support measures for MSMEs in Budget 2026.
• The Budget was presented on 1 February 2026.
RRB Group D 2025-26 – 19 August 2026 Shift 1 · Union Budget - latest highlights

Q11. What is the name of the initiative proposed in the Union Budget 2026-27 to strengthen the ecosystem for the production of biologics and biosimilars in India?

  1. (a) Pharma Vision 2030
  2. (b) BioIndia Mission
  3. (c) National Biologics Development Scheme
  4. (d) Biopharma SHAKTI
Answer & solution

Answer: (d) Biopharma SHAKTI

Correct Answer:
Correct Answer: Option 4 – Biopharma SHAKTI
Explanation:
The Union Budget 2026–27 proposed the'Biopharma SHAKTI'scheme, with an outlay of around ₹10,000 crore, to strengthen India's ecosystem for biologics and biosimilars production and position India as a global biopharma hub.
Important Facts:
• The scheme was announced by Finance Minister Nirmala Sitharaman on 1 February 2026.
• It aims to boost domestic manufacturing capacity for complex biologic drugs.
• It complements existing PLI schemes for pharmaceuticals.
RRB Group D 2025-26 – 19 August 2026 Shift 1 · Union Budget - latest highlights

Q12. Under the Union Budget 2026–27, customs duty exemptions on specified imported medicines and drugs were announced mainly to provide relief to patients suffering from which of the following diseases?

  1. (a) Dengue
  2. (b) Diabetes
  3. (c) Cancer
  4. (d) Tuberculosis
Answer & solution

Answer: (c) Cancer

Correct Answer:
Correct Answer: Option 3 – Cancer
Explanation:
In the Union Budget 2026–27, basic customs duty was exempted on 17 additional drugs and medicines forcancerpatients (along with medicines for certain rare diseases), continuing a trend from the 2024 and 2025 budgets of easing import duties on life-saving cancer drugs.
Important Facts:
• Union Budget 2024-25 had exempted customs duty on 3 cancer drugs.
• Union Budget 2025-26 fully exempted 36 life-saving medicines from customs duty.
• The 2026-27 budget extended relief to cover 7 rare diseases as well.
RRB Group D 2025-26 – 19 August 2026 Shift 2 · Union Budget - latest highlights

Q13. According to the Union Budget 2026–27, the newly announced Khelo India Mission aims to transform India's sports sector over the next ______.

  1. (a) 10 years
  2. (b) 20 years
  3. (c) 5 years
  4. (d) 15 years
Answer & solution

Answer: (a) 10 years

Correct Answer:
Correct Answer: Option 1 – 10 years
Explanation:
In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced theKhelo India Missionto transform India's sports sector over the next decade, i.e.,10 years.
Important Facts:
• The Budget also earmarked ₹500 crore for the promotion of sports goods manufacturing.
• The mission aims to build training infrastructure and develop coaches over the long term.
• Confirmed via PIB press release and multiple budget news reports.
RRB Group D 2025-26 – 18 August 2026 Shift 1 · Union Budget - latest highlights

Q14. What major financial reform was initiated in the Union Budget 2026 to support small businesses in India?

  1. (a) SME Growth Fund with an outlay of ₹10,000 crore
  2. (b) Increasing GST rates for service providers
  3. (c) Launching export incentives for large corporations
  4. (d) Revising direct tax slabs for salaried employees
Answer & solution

Answer: (a) SME Growth Fund with an outlay of ₹10,000 crore

SME Growth Fund – Union Budget 2026
In the Union Budget 2026-27 (presented 1 February 2026), the Finance Minister announced a dedicatedSME Growth Fund with an outlay of ₹10,000 croreto support small and medium enterprises, aimed at boosting jobs, manufacturing and exports.
This is confirmed by multiple contemporaneous reports (Business Standard, HDFC Securities, IRIS MSME) covering Budget 2026-27's MSME measures.
Correct Answer: SME Growth Fund with an outlay of ₹10,000 crore
RRB Group D 2025-26 – 18 August 2026 Shift 1 · Union Budget - latest highlights

Q15. Which of the following initiatives, announced in the Union Budget 2026–27, is intended to transform India's sports ecosystem over the next decade?

  1. (a) Sports Talent Nurturing
  2. (b) National Sports Excellence Programme
  3. (c) Khelo India Mission
  4. (d) Youth Skilling Campaign
Answer & solution

Answer: (c) Khelo India Mission

Khelo India Mission – Budget 2026-27
The Union Budget 2026-27 announced the launch of theKhelo India Mission, intended to transform India's sports ecosystem over the next decade, along with ₹500 crore earmarked for promotion of sports goods manufacturing.
Confirmed by PIB and DD News headlines: 'Union Budget 2026–27 Announces Launch of Khelo India Mission to Transform Sports Sector'.
Correct Answer: Khelo India Mission
RRB Group D 2025-26 – 17 August 2026 Shift 2 · Union Budget - latest highlights

Q16. Which of the following had convened the first meeting of the High-Powered ‘Education to Employment and Enterprise’ Standing Committee proposed in the Finance Minister’s Budget Speech for 2026-27?

  1. (a) NITI Aayog
  2. (b) Ministry of Skill Development and Entrepreneurship
  3. (c) Department of Commerce
  4. (d) Ministry of Labour and Employment
Answer & solution

Answer: (a) NITI Aayog

Education to Employment and Enterprise Standing Committee
NITI Aayogconvened the first meeting of the High-Powered 'Education to Employment and Enterprise' Standing Committee (proposed in the Union Budget Speech 2026-27) on May 22, 2026.
• The meeting was chaired by Smt. Nidhi Chibber, CEO of NITI Aayog.
• Confirmed by Odisha Diary/PIB coverage of the NITI Aayog convened meeting.
Correct Answer: NITI Aayog
RRB Group D 2025-26 – 17 August 2026 Shift 3 · Union Budget - latest highlights

Q17. As per Union Budget 2025-26, how many Atal Tinkering Labs are to be set up in Government schools in the next 5 years?

  1. (a) 80,000
  2. (b) 60,000
  3. (c) 50,000
  4. (d) 70,000
Answer & solution

Answer: (c) 50,000

Atal Tinkering Labs - Union Budget 2025-26
As per the Union Budget 2025-26, the government announced setting up50,000 Atal Tinkering Labsin Government schools over the next five years.
This is confirmed by Business Today, The Statesman, and multiple budget coverage reports from February 2025.
Correct Answer: 50,000
RRB Group D 2025-26 – 14 August 2026 Shift 1 · Union Budget - latest highlights

Q18. As per the Union Budget 2025-26 announcement, in which state is a greenfield airport to be established?

  1. (a) Bihar
  2. (b) Odisha
  3. (c) Rajasthan
  4. (d) Haryana
Answer & solution

Answer: (a) Bihar

Answer: Option 1 – Bihar.
• Union Budget 2025-26 announced a greenfield airport inBihar.
RRB Group D 2025-26 – 14 August 2026 Shift 2 · Union Budget - latest highlights

Q19. Under the modified interest subvention scheme, what is the new credit limit for loans taken through Kisan Credit Cards as per Budget 2025?

  1. (a) ₹4 lakh
  2. (b) ₹5 lakh
  3. (c) ₹3 lakh
  4. (d) ₹6 lakh
Answer & solution

Answer: (b) ₹5 lakh

Answer: Option 2 – ₹5 lakh.
• Budget 2025 raised the Kisan Credit Card loan limit under interest subvention to₹5 lakh.
RRB Group D 2025-26 – 14 August 2026 Shift 2 · Union Budget - latest highlights

Q20. As per the announcement by the Union Finance Minister of India, how many Day Care Cancer Centres will the Government set up in district hospitals in 2025–26?

  1. (a) 500
  2. (b) 300
  3. (c) 200
  4. (d) 400
Answer & solution

Answer: (c) 200

Answer: Option 3 – 200.
• The Union Budget 2025–26 announced200 Day Care Cancer Centresin district hospitals.
RRB Group D 2025-26 – 13 August 2026 Shift 1 · Union Budget - latest highlights

Q21. The Union Budget 2026, as appreciated by Prataprao Jadhav, focuses on strengthening which approach to healthcare?

  1. (a) Emergency healthcare
  2. (b) Veterinary healthcare
  3. (c) Military healthcare
  4. (d) Holistic healthcare
Answer & solution

Answer: (d) Holistic healthcare

Answer: Option 4 – Holistic healthcare.
• The Union Budget 2026 focus (as appreciated by Prataprao Jadhav) is onholistic healthcare.
RRB Group D 2025-26 – 13 August 2026 Shift 1 · Union Budget - latest highlights

Q22. The Union Budget 2026-27 introduced a new comprehensive framework to upgrade the earlier Khelo India programme. What is the name of this new multi-faceted mission?

  1. (a) National Sports Development Framework
  2. (b) Target Olympic Podium Scheme (TOPS) 2.0
  3. (c) Bharat Sports Excellence Programme
  4. (d) Khelo India Mission
Answer & solution

Answer: (d) Khelo India Mission

Answer: Option 4 – Khelo India Mission.
• The Union Budget 2026-27 upgraded Khelo India into theKhelo India Mission.
RRB Group D 2025-26 – 12 August 2026 Shift 1 · Union Budget - latest highlights

Q23. As per the Union Budget 2025-26, how many PM Research Fellowships will be provided for technological research in IITs and IISc, with enhanced financial support over the next five years?

  1. (a) 14,000
  2. (b) 12,000
  3. (c) 10,000
  4. (d) 16,000
Answer & solution

Answer: (c) 10,000

Answer: Option 3 – 10,000.
• Union Budget 2025-26 provided10,000PM Research Fellowships for IITs and IISc.
RRB Group D 2025-26 – 11 August 2026 Shift 1 · Union Budget - latest highlights

Q24. What absolute financial amount was designated for the welfare of women and girls in the Gender Budget Statement for FY 2026–27?

  1. (a) ₹5.41 lakh crore
  2. (b) ₹4.49 lakh crore
  3. (c) ₹3.50 lakh crore
  4. (d) ₹5.00 lakh crore
Answer & solution

Answer: (d) ₹5.00 lakh crore

Answer: Option 4 – ₹5.00 lakh crore.
• The Gender Budget Statement for FY 2026–27 designated about₹5.00 lakh crorefor women and girls.
RRB Group D 2025-26 – 11 August 2026 Shift 2 · Union Budget - latest highlights

Q25. Under the Union Budget 2026–27, the Government of India proposed the launch of which scheme aimed at developing India into a global biopharma manufacturing hub?

  1. (a) Biopharma SHAKTI
  2. (b) Pharma Vision 2047
  3. (c) BioNex India Mission
  4. (d) National Bioscience Acceleration Programme
Answer & solution

Answer: (a) Biopharma SHAKTI

Answer: Option 1 – Biopharma SHAKTI.
• Union Budget 2026–27 proposedBiopharma SHAKTIto develop India as a global biopharma manufacturing hub.
RRB Group D 2025-26 – 11 August 2026 Shift 3 · Union Budget - latest highlights

Q26. Which scheme had been proposed in the Union Budget 2026-27 with an outlay of ₹10,000 crore over five years to strengthen India’s end-to-end ecosystem for biologics and biosimilars?

  1. (a) Digital Health Mission
  2. (b) Bio-Pharma SHAKTI
  3. (c) Pharma Innovation Bharat Scheme
  4. (d) National Biotech Growth Initiative
Answer & solution

Answer: (b) Bio-Pharma SHAKTI

Answer: Option 2 – Bio-Pharma SHAKTI.
• Union Budget 2026–27 proposedBio-Pharma SHAKTI(₹10,000 crore over 5 years) for a biologics/biosimilars ecosystem.
RRB Group D 2025-26 – 11 August 2026 Shift 3 · Union Budget - latest highlights

Q27. Which of the following schemes was announced in the Union Budget 2026-27?

  1. (a) National Digital Health Mission
  2. (b) Coir Udyami Yojana
  3. (c) PM Vishwakarma
  4. (d) Divyangjan Kaushal Yojana
Answer & solution

Answer: (d) Divyangjan Kaushal Yojana

Answer: Option 4 – Divyangjan Kaushal Yojana.
• Among the options,Divyangjan Kaushal Yojanawas announced in the Union Budget 2026–27.
RRB Group D 2025-26 – 10 August 2026 Shift 1 · Union Budget - latest highlights

Q28. What major AYUSH infrastructure initiative was announced in the Union Budget 2026–27 to strengthen India's position as a global centre for traditional medicine?

  1. (a) Closing the WHO Traditional Medicine Centre to upgrade private facilities
  2. (b) Banning the export of all Ayurvedic products to ensure domestic supply
  3. (c) Establishing three new All India Institutes of Ayurveda
  4. (d) Shifting AYUSH funding entirely to state governments
Answer & solution

Answer: (c) Establishing three new All India Institutes of Ayurveda

Answer: Option 3 — Establishing three new All India Institutes of Ayurveda
The Budget 2026–27 announcedthree new AIIAs→ Option 3. *(Verify against the official key.)*
RRB Group D 2025-26 – 10 August 2026 Shift 3 · Union Budget - latest highlights

Q29. In the Union Budget 2025–26, India’s total defense allocation reached a record high of approximately how much, reflecting the government's sustained focus on military modernization and Atmanirbharta (self-reliance)?

  1. (a) ₹5.61 lakh crore
  2. (b) ₹8.81 lakh crore
  3. (c) ₹6.81 lakh crore
  4. (d) ₹4.33 lakh crore
Answer & solution

Answer: (c) ₹6.81 lakh crore

Answer: Option 3 – ₹6.81 lakh crore.
• The Union Budget 2025–26 set a record defence allocation of about₹6.81 lakh crore.
RRB Group D 2025-26 – 10 August 2026 Shift 3 · Union Budget - latest highlights

Q30. The Union Budget 2026–27 announced "Biopharma SHAKTI" to develop India as a global biopharma hub. What does the acronym SHAKTI in Biopharma-SHAKTI stands for?

  1. (a) Scheme for Health and Knowledge Advancement through Technology and Industry
  2. (b) Strategy for Healthcare Advancement through Knowledge, Technology and Innovation
  3. (c) Strategy for Healthcare Access through Knowledge, Training and Infrastructure
  4. (d) System for High-value Advancement through Knowledge Transfer and Innovation
Answer & solution

Answer: (b) Strategy for Healthcare Advancement through Knowledge, Technology and Innovation

Answer: Option 2 – Strategy for Healthcare Advancement through Knowledge, Technology and Innovation.
• This is the expansion of SHAKTI in 'Biopharma-SHAKTI' announced in Union Budget 2026–27.
RRB Group D 2025-26 – 10 August 2026 Shift 3 · Union Budget - latest highlights

Q31. As per the Union Budget 2025-26, the Foreign Direct Investment (FDI) limit for the insurance sector is to be raised for those companies which invest the entire premium in India from 74% to a maximum of _____________.̲

  1. (a) 95%
  2. (b) 80%
  3. (c) 100%
  4. (d) 90%
Answer & solution

Answer: (c) 100%

Answer: Option 3 – 100%.
• Union Budget 2025–26 proposed raising the insurance-sector FDI limit from 74% to100%for companies investing the entire premium in India.
RRB Group D 2025-26 – 9 August 2026 Shift 1 · Union Budget - latest highlights

Q32. Which scheme announced in the Union Budget 2026–27 was specifically aimed at creating globally competitive industrial ecosystems?

  1. (a) Integrated Freight Infrastructure Mission
  2. (b) Container Manufacturing Scheme
  3. (c) Bharat Export Connectivity Initiative
  4. (d) National Logistics Competitiveness Programme
Answer & solution

Answer: (b) Container Manufacturing Scheme

Answer: Option 2 — Container Manufacturing Scheme
Per the paper, the Budget 2026–27 scheme for competitive industrial ecosystems is theContainer Manufacturing Scheme→ Option 2. *(Verify against the official key.)*
RRB Group D 2025-26 – 9 August 2026 Shift 1 · Finance Commission and tax devolution

Q33. Who was the head of the 16th Finance Commission, whose report was tabled in Parliament in February 2026?

  1. (a) Sanjay Malhotra
  2. (b) Montek Singh Ahluwalia
  3. (c) Ashok Lahiri
  4. (d) Arvind Panagariya
Answer & solution

Answer: (d) Arvind Panagariya

Answer: Option 4 — Arvind Panagariya
Arvind Panagariyachaired the 16th Finance Commission → Option 4.
RRB Group D 2025-26 – 9 August 2026 Shift 1 · Union Budget - latest highlights

Q34. According to the Union Budget 2026–27, the newly proposed “Khelo India Mission” aims to transform India’s sports ecosystem over what period of time?

  1. (a) Next ten years
  2. (b) Next fifteen years
  3. (c) Next seven years
  4. (d) Next five years
Answer & solution

Answer: (a) Next ten years

Answer: Option 1 — Next ten years
The Khelo India Mission aims to transform sports over thenext ten years→ Option 1.
RRB Group D 2025-26 – 9 August 2026 Shift 2 · Union Budget - latest highlights

Q35. In February 2026, the Government of India launched which long-term sports development framework through the Union Budget 2026–27 to strengthen India’s sports ecosystem?

  1. (a) TOPS Development initiative
  2. (b) Olympic Vision programme
  3. (c) Fit India Movement programme
  4. (d) Khelo India Mission framework
Answer & solution

Answer: (d) Khelo India Mission framework

Answer: Option 4 — Khelo India Mission framework
The Budget 2026–27 launched theKhelo India Missionframework → Option 4.
RRB Group D 2025-26 – 9 August 2026 Shift 3 · Union Budget - latest highlights

Q36. The Union Budget 2026-27 introduced the 'Biopharma SHAKTI' scheme. What is the primary objective of this ₹10,000 crore initiative?

  1. (a) To train 1.5 lakh care workers for the elderly
  2. (b) To transform India into a manufacturing hub for biologics and biosimilars
  3. (c) To provide free generic medicines in all government hospitals
  4. (d) To set up new AIIMS hospitals in every state
Answer & solution

Answer: (b) To transform India into a manufacturing hub for biologics and biosimilars

Answer: Option 2 — To make India a manufacturing hub for biologics and biosimilars
Biopharma SHAKTI (₹10,000 crore) targetsbiologics/biosimilars manufacturing→ Option 2. *(Verify against the official key.)*
RRB Group D 2025-26 – 9 August 2026 Shift 3 · Finance Commission and tax devolution

Q37. What percentage share of the divisible pool of central taxes has been recommended for the states by the 16th Finance Commission for 2026-31?

  1. (a) 54%
  2. (b) 51%
  3. (c) 32%
  4. (d) 41%
Answer & solution

Answer: (d) 41%

Answer: Option 4 — 41%
The 16th Finance Commission recommended a41%states' share of the divisible pool → Option 4.
RRB Group D 2025-26 – 9 August 2026 Shift 3 · Union Budget - latest highlights

Q38. According to the Union Budget 2025-26, under the new regime, no personal income tax is payable up to the maximum income of ₹_________.

  1. (a) 9 lakh
  2. (b) 11 lakh
  3. (c) 12 lakh
  4. (d) 10 lakh
Answer & solution

Answer: (c) 12 lakh

Answer: Option 3 — 12 lakh
Under the new regime (Budget 2025-26), no income tax up to₹12 lakh→ Option 3.
RRB Group D 2025-26 – 6 August 2026 Shift 1 · Union Budget - latest highlights

Q39. Under the Khelo India Mission announced in the Union Budget 2026–27, which of the following was listed as a key feature?

  1. (a) Compulsory foreign coaching for all district-level athletes
  2. (b) Exclusive private-league scholarships for senior athletes
  3. (c) Integrated talent pathway through multi-level training centres
  4. (d) Pension-linked incentives for retired national coaches
Answer & solution

Answer: (c) Integrated talent pathway through multi-level training centres

Answer: Option 3 — Integrated talent pathway through multi-level training centres
The Khelo India Mission (Budget 2026–27) features anintegrated talent pathway→ Option 3. *(Verify against the official key.)*
RRB Group D 2025-26 – 6 August 2026 Shift 1 · Union Budget - latest highlights

Q40. Which major mental healthcare institution was announced in the Union Budget 2026–27 to address the absence of a national-level mental health institute in North India?

  1. (a) NIMHANS-2
  2. (b) National Psychiatry Mission
  3. (c) Rashtriya Manasik Swasthya Kendra
  4. (d) AIIMS Mental Health Centre
Answer & solution

Answer: (a) NIMHANS-2

Answer: Option 1 — NIMHANS-2
The Budget 2026–27 announcedNIMHANS-2for North India → Option 1.
RRB Group D 2025-26 – 6 August 2026 Shift 2 · Union Budget - latest highlights

Q41. Which initiative was announced in the Union Budget 2026–27 to shift sports development in India towards a long-term, mission-mode approach over the next decade?

  1. (a) National Sports Development Fund
  2. (b) Target Olympic Podium Scheme Plus
  3. (c) Fit India Global Mission
  4. (d) Khelo India Mission
Answer & solution

Answer: (d) Khelo India Mission

Answer: Option 4 — Khelo India Mission
TheKhelo India Mission(Budget 2026–27) shifts sports to a mission-mode approach → Option 4.
RRB Group D 2025-26 – 5 August 2026 Shift 3 · Union Budget - latest highlights

Q42. In the Union Budget 2026 presented in February, a major focus area was on infrastructure development. Which of the following sectors was specifically allocated increased funds to improve national connectivity and logistics?

  1. (a) Agriculture sector
  2. (b) Defence sector
  3. (c) Railways sector
  4. (d) Health sector
Answer & solution

Answer: (c) Railways sector

Answer: Option 3 — Railways sector
The Budget 2026 boostedRailwaysfor connectivity and logistics → Option 3. *(Verify against the official key.)*
RRB Group D 2025-26 – 5 August 2026 Shift 3 · Union Budget - latest highlights

Q43. What is the name of the mission announced during Union Budget 2026–27 with an objective of marking a major shift to a long-term, outcome-driven framework to transform India’s sports ecosystem?

  1. (a) Khelo Gaon Mission
  2. (b) Khelo India Mission
  3. (c) Khelo Dilse Mission
  4. (d) Khelo Mahabharath Mission
Answer & solution

Answer: (b) Khelo India Mission

Answer: Option 2 — Khelo India Mission
The Budget 2026–27 announced the outcome-drivenKhelo India Mission→ Option 2. *(Verify against the official key.)*
RRB Group D 2025-26 – 4 August 2026 Shift 1 · Union Budget - latest highlights

Q44. The Budget for 2026–27 provides an allocation of ₹924.35 crore for which of the following missions?

  1. (a) Khelo India Mission
  2. (b) National Health Mission
  3. (c) Smart Cities Mission
  4. (d) Swachh Bharat Mission
Answer & solution

Answer: (a) Khelo India Mission

Answer: Option 1 — Khelo India Mission
The ₹924.35 crore allocation (Budget 2026–27) is for theKhelo India Mission→ Option 1. *(Verify against the official key.)*
RRB Group D 2025-26 – 4 August 2026 Shift 1 · Union Budget - latest highlights

Q45. What does SHAKTI stand for in the Biopharma SHAKTI initiative announced in the Union Budget 2026–27?

  1. (a) Scientific Health and Advanced Knowledge for Translational Innovation
  2. (b) Sustainable Health Advancement through Knowledge and Technological Integration
  3. (c) Strategy for Healthcare Advancement through Knowledge, Technology and Innovation
  4. (d) Strategic Hub for Artificial Knowledge and Technical Integration
Answer & solution

Answer: (c) Strategy for Healthcare Advancement through Knowledge, Technology and Innovation

Answer: Option 3 — Strategy for Healthcare Advancement through Knowledge, Technology and Innovation
Biopharma SHAKTI's expansion (Budget 2026–27) → Option 3. *(Verify against the official key.)*
RRB Group D 2025-26 – 4 August 2026 Shift 2 · Union Budget - latest highlights

Q46. In the Union Budget 2026–27, a provision of ₹1,000 crore was made for the India Semiconductor Mission (ISM) 2.0 with a strong emphasis on which of the following?

  1. (a) Drive industry-led research and training centres
  2. (b) Increase subsidies for mineral exports
  3. (c) Promote foreign direct investment in mining
  4. (d) Expand public sector manufacturing units
Answer & solution

Answer: (a) Drive industry-led research and training centres

Answer: Option 1 — Drive industry-led research and training centres
ISM 2.0 (₹1,000 crore) emphasisesindustry-led research and training centres→ Option 1. *(Verify against the official key.)*
RRB Group D 2025-26 – 4 August 2026 Shift 3 · Union Budget - latest highlights

Q47. For the financial year 2026-27 (FY27), what was the fiscal deficit target set by the Union Budget?

  1. (a) 6% of GDP
  2. (b) 4.3% of GDP
  3. (c) 5.2% of GDP
  4. (d) 3.5% of GDP
Answer & solution

Answer: (b) 4.3% of GDP

Answer: Option 2 — 4.3% of GDP
The FY27 Union Budget set a fiscal deficit target of about4.3% of GDP→ Option 2. *(Verify against the official key.)*
RRB Group D 2025-26 – 3 August 2026 Shift 3 · Union Budget - latest highlights

Q48. In the Union Budget 2026–2027, the announcement of establishing NIMHANS-2 in northern India is related to which sector?

  1. (a) Higher Education Policy Reform
  2. (b) Renewable Energy Development
  3. (c) Mental Health and Neurosciences Infrastructure
  4. (d) Agricultural Development
Answer & solution

Answer: (c) Mental Health and Neurosciences Infrastructure

Answer: Option 3 — Mental Health and Neurosciences Infrastructure
NIMHANS-2 relates tomental health and neurosciencesinfrastructure → Option 3.
RRB Group D 2025-26 – 3 August 2026 Shift 3 · Union Budget - latest highlights

Q49. In the Union Budget 2026–27, what percentage share of the total public expenditure is constituted by the Gender Budget?

  1. (a) 6.80% of the total budget
  2. (b) 8.86% of the total budget
  3. (c) 9.37% of the total budget
  4. (d) 11.36% of the total budget
Answer & solution

Answer: (c) 9.37% of the total budget

Answer: Option 3 — 9.37% of the total budget
The Gender Budget in Union Budget 2026–27 is about9.37%of total expenditure → Option 3. *(Verify against the official key.)*
RRB Group D 2025-26 – 3 August 2026 Shift 3 · Union Budget - latest highlights

Q50. The Union Budget 2026–27 allocated how much funding over five years to support Carbon Capture, Utilisation and Storage (CCUS) development?

  1. (a) ₹20,000 crore
  2. (b) ₹15,000 crore
  3. (c) ₹5,000 crore
  4. (d) ₹10,000 crore
Answer & solution

Answer: (a) ₹20,000 crore

Answer: Option 1 — ₹20,000 crore
The Budget 2026–27 allocated₹20,000 croreover five years for CCUS → Option 1. *(Verify against the official key.)*
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 1 · Union Budget - latest highlights

Q51. According to the Union Budget 2025-26, how many districts will be initially covered under the 'Prime Minister Dhan-Dhaanya Krishi Yojana-Developing Agri Districts Programme'?

  1. (a) 51
  2. (b) 75
  3. (c) 100
  4. (d) 111
Answer & solution

Answer: (c) 100

Prime Minister Dhan-Dhaanya Krishi Yojana
Announced in Union Budget 2025-26.
Objective: Transform agricultural districts through focused development.
Initial Coverage:100 districtsacross India.
Focus: Boost productivity and farmer income in selected agri-districts.
Answer: Option 3 → 100
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 2 · Union Budget - latest highlights

Q52. According to the Union Budget 2025-26, what is the total estimated expenditure for the year?

  1. (a) ₹40 lakh crore
  2. (b) ₹45 lakh crore
  3. (c) ₹50.65 lakh crore
  4. (d) ₹55 lakh crore
Answer & solution

Answer: (c) ₹50.65 lakh crore

Topic: Union Budget 2025-26
The Finance Minister presented the Union Budget 2025-26 in Parliament.
Total estimated expenditure announced:₹50.65 lakh crore
This represents the government's total spending plan for FY 2025-26.
Answer: Option 3 → ₹50.65 lakh crore
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 3 · Union Budget - latest highlights

Q53. According to the Union Budget 2025-26, the government announced the establishment of a Maritime Development Fund with a corpus of:

  1. (a) ₹25,000 crore
  2. (b) ₹30,000 crore
  3. (c) ₹35,000 crore
  4. (d) ₹20,000 crore
Answer & solution

Answer: (a) ₹25,000 crore

Topic: Union Budget 2025-26 - Maritime Development Fund
The government announced the establishment of aMaritime Development Fundto boost India's maritime infrastructure and shipping sector.
The fund has been allocated a corpus of₹25,000 crore.
This initiative aims to enhance port modernization, coastal shipping, and overall maritime connectivity.
Answer: Option 1 → ₹25,000 crore
RRB NTPC UG CBT-1 2025-26 – 15 June 2026 Shift 1 · FRBM Act and fiscal policy

Q54. What is the primary goal of India’s Fiscal Responsibility and Budget Management (FRBM) Act of 2003?

  1. (a) To raise taxes on petrol
  2. (b) To boost GDP growth
  3. (c) To increase subsidies
  4. (d) To control fiscal deficits
Answer & solution

Answer: (d) To control fiscal deficits

FRBM Act, 2003
Primary Goal: Fiscal discipline and deficit reduction.
Key Objectives:
• Reduce fiscal deficit to sustainable levels
• Eliminate revenue deficit
• Ensure long-term macroeconomic stability
The Act mandates targets for fiscal deficit (3% of GDP) and revenue deficit elimination.
Answer: Option 4 → To control fiscal deficits
RRB NTPC UG CBT-1 2025-26 – 15 June 2026 Shift 2 · FRBM Act and fiscal policy

Q55. The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in which year in India?

  1. (a) 2005
  2. (b) 2003
  3. (c) 2004
  4. (d) 2001
Answer & solution

Answer: (b) 2003

FRBM Act - Fiscal Responsibility and Budget Management
Enacted:2003
Key Facts:
• Aimed at fiscal discipline and reducing fiscal deficit
• Targets set for revenue deficit and fiscal deficit
• Amended in 2018 (NK Singh Committee recommendations)
Answer: Option 2 → 2003
RRB NTPC UG CBT-1 2025-26 – 14 June 2026 Shift 1 · Union Budget - latest highlights

Q56. Under the proposed Budget, what is the fiscal deficit target for FY 2025-26?

  1. (a) 5.0% of GDP
  2. (b) 3.8% of GDP
  3. (c) 4.4% of GDP
  4. (d) 6.2% of GDP
Answer & solution

Answer: (c) 4.4% of GDP

Topic: Union Budget 2025-26 - Fiscal Deficit Target
The Government of India announced the fiscal deficit target for FY 2025-26 in the Union Budget.
Fiscal Deficit Target = 4.4% of GDP
This represents a gradual fiscal consolidation path as the government aims to reduce the deficit from previous years while maintaining growth momentum.
Answer: Option 3 → 4.4% of GDP
RRB NTPC UG CBT-1 2025-26 – 14 June 2026 Shift 2 · Union Budget - latest highlights

Q57. As of Union Budget 2025-26, what is the proposed size of the new Fund of Funds for Startups?

  1. (a) ₹10,000 crore
  2. (b) ₹5,000 crore
  3. (c) ₹12,000 crore
  4. (d) ₹7,500 crore
Answer & solution

Answer: (a) ₹10,000 crore

Union Budget 2025-26: Fund of Funds for Startups
The Finance Minister announced a newFund of Fundsto boost startup ecosystem in India.
Proposed size:₹10,000 crore
Purpose: To provide equity funding support to startups and encourage innovation.
Answer: Option 1 → ₹10,000 crore
SSC GD 2026 – 22 May 2026 Shift 1 · Union Budget - latest highlights

Q58. What is the annual allocation under the PM Dhan-Dhanya Krishi Yojana approved in July 2025?

  1. (a) Rs 20,000 crore
  2. (b) Rs 22,000 crore
  3. (c) Rs 24,000 crore
  4. (d) Rs 30,000 crore
Answer & solution

Answer: (c) Rs 24,000 crore

Correct Answer: Rs 24,000 crore — Option (c)
The annual allocation under the PM Dhan-Dhanya Krishi Yojana (PM DDKY) approved in July 2025 is Rs 24,000 crore. About PM Dhan-Dhanya Krishi Yojana (PM DDKY): Launched/approved in 2025 as part of the Union Budget initiatives for agriculture; The scheme focuses on agricultural districts that are lagging behind in productivity and growth; Objectives: Boosting agricultural productivity in identified districts, increasing crop diversification, improving irrigation and water efficiency, developing post-harvest storage infrastructure, enhancing credit access for farmers; Coverage: The scheme targets agriculturally underdeveloped districts across India; Annual allocation: Rs 24,000 crore approved in July 2025; Significance: The PM Dhan-Dhanya Krishi Yojana aims to transform lagging agricultural districts by addressing gaps in infrastructure, productivity, and farmer income; it is part of India's ongoing effort to double/increase farmer incomes and modernize agriculture; The scheme was approved by the Union Cabinet and is implemented by the Ministry of Agriculture and Farmers' Welfare.
Option (a) Rs 20,000 crore — Incorrect: The annual allocation under PM Dhan-Dhanya Krishi Yojana is Rs 24,000 crore (not Rs 20,000 crore); Rs 20,000 crore is lower than the actual approved amount.
Option (b) Rs 22,000 crore — Incorrect: The correct annual allocation is Rs 24,000 crore, not Rs 22,000 crore; Rs 22,000 crore is not the approved allocation for PM Dhan-Dhanya Krishi Yojana.
Option (d) Rs 30,000 crore — Incorrect: The annual allocation under PM Dhan-Dhanya Krishi Yojana is Rs 24,000 crore, not Rs 30,000 crore; Rs 30,000 crore is higher than the actual approved annual outlay.
SSC GD 2026 – 22 May 2026 Shift 1 · Union Budget - components and process

Q59. When was gender budgeting started in India?

  1. (a) 1991-1992
  2. (b) 1997-1998
  3. (c) 2005-2006
  4. (d) 2020-2021
Answer & solution

Answer: (c) 2005-2006

Correct Answer: 2005-2006 — Option (c)
Gender Budgeting was formally introduced in India in the Union Budget of 2005-2006. About Gender Budgeting in India: Gender budgeting is NOT a separate budget for women — it is the analysis of the mainstream budget from a gender perspective to ensure adequate allocation for women's welfare; Introduction: The Ministry of Finance introduced the Gender Budget Statement (PBS — Part B of Union Budget) starting from the Union Budget 2005-06; The Gender Budget Statement shows two sets of funds: Part A: Schemes with 100% women-centric allocation; Part B: Schemes where at least 30% funds are for women's benefit; Historical background: India signed the Beijing Platform for Action (1995) which called for gender-responsive budgeting; The 10th Five-Year Plan (2002-07) emphasized gender mainstreaming; Following international commitments and gender equity goals, India formally launched Gender Budget Statements in 2005-06; Current status: Every year, the Union Budget includes a Gender Budget Statement showing allocation for women across different ministries and schemes; Women's share in Union Budget has been growing over the years; Purpose: Accountability for gender equality commitments; better allocation of resources for women's health, education, and economic empowerment.
Option (a) 1991-1992 — Incorrect: 1991-1992 was the year of India's major economic reforms (liberalization, privatization, globalization under Finance Minister Manmohan Singh) — gender budgeting was NOT introduced in 1991-92; it was formally introduced in 2005-06.
Option (b) 1997-1998 — Incorrect: 1997-1998 was not when gender budgeting was introduced in India — it was introduced in 2005-06; the 1990s saw the Women's Reservation Bill debates and the 73rd/74th Constitutional Amendments (1992-93) giving women reservation in local bodies, but not gender budgeting in 1997-98. The candidate selected this incorrect option.
Option (d) 2020-2021 — Incorrect: Gender budgeting in India was started in 2005-06, not 2020-21; by 2020-21, gender budgeting was already a 15-year old practice in India's Union Budget.
SSC GD 2026 – 22 May 2026 Shift 3 · Revenue and capital receipts and expenditure

Q60. In the context of the budget, which of the following includes government's assets and liabilities?

  1. (a) Revenue Account
  2. (b) Capital Account
  3. (c) Suspense Account
  4. (d) Foreign Exchange Account
Answer & solution

Answer: (b) Capital Account

Correct Answer: Capital Account — Option (b)
In the context of the government budget, the Capital Account includes the government's assets and liabilities. About the Government Budget Structure: The Union Budget of India has two main components: Revenue Budget (Revenue Account): Revenue Receipts: Tax revenue (direct taxes + indirect taxes) + Non-tax revenue (dividends, fees, interest); Revenue Expenditure: Day-to-day functioning expenses — salaries, subsidies, interest payments, pensions; Revenue budget does NOT create assets or liabilities; A Revenue Deficit means revenue expenditure exceeds revenue receipts; Capital Budget (Capital Account): Capital Receipts: Borrowings (market loans, external loans, treasury bills), Disinvestment proceeds, Loans recovered from states; Capital Expenditure: Investment in infrastructure, creation of assets, repayment of loans; The Capital Account DIRECTLY DEALS WITH ASSETS AND LIABILITIES: Assets created (infrastructure, buildings, machinery) are on the assets side; Borrowings, loans outstanding, and debt are liabilities; A Capital Deficit (Fiscal Deficit) arises when total expenditure > total receipts (excluding borrowings); Key fiscal concepts: Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings); Primary Deficit = Fiscal Deficit - Interest Payments; Revenue Deficit = Revenue Expenditure - Revenue Receipts.
Option (a) Revenue Account — Incorrect: The Revenue Account records the government's day-to-day income (taxes, non-tax revenue) and recurring expenditure (salaries, subsidies, interest); it does NOT primarily deal with assets and liabilities — that is the domain of the Capital Account. The candidate selected this incorrect option.
Option (c) Suspense Account — Incorrect: A Suspense Account is a temporary account used when transactions cannot be immediately classified — it is NOT the budget account that includes government's assets and liabilities; the Capital Account is the correct answer.
Option (d) Foreign Exchange Account — Incorrect: Foreign Exchange Accounts deal with a country's foreign currency reserves managed by the RBI — while foreign exchange reserves are assets, the budget account that specifically captures government assets and liabilities (created through borrowings and capital expenditure) is the Capital Account.
SSC GD 2026 – 21 May 2026 Shift 2 · Deficits (fiscal, revenue, primary)

Q61. When tax collection exceeds necessary expenditure, the budget is called _____.

  1. (a) Deficit budget
  2. (b) Surplus budget
  3. (c) Balanced budget
  4. (d) Zero budget
Answer & solution

Answer: (b) Surplus budget

Correct Answer: Surplus budget — Option (b)
When tax collection (government revenue) exceeds necessary expenditure, the budget is called a Surplus Budget. Types of Government Budget based on revenue-expenditure balance: Surplus Budget: Revenue > Expenditure; Government collects more (through taxes, fees, etc.) than it spends; indicates fiscal strength but may also indicate under-spending on public services; can be used to repay public debt; Deficit Budget: Revenue < Expenditure; Government spends more than it collects; government must borrow to cover the shortfall; India has typically run deficit budgets; common in developing economies investing in growth; Types of deficit: Fiscal deficit, Revenue deficit, Primary deficit; Balanced Budget: Revenue = Expenditure; government collects exactly as much as it spends; theoretically ideal but rare in practice; Zero-Based Budget (ZBB): A budgeting technique where every expense must be justified for each new period, starting from a 'zero base' — NOT related to the revenue-expenditure balance; used in financial planning/management.
Option (a) Deficit budget — Incorrect: A deficit budget is the opposite scenario — when government expenditure EXCEEDS revenue (tax collection is LESS than expenditure); India has historically maintained fiscal deficit budgets; the question describes revenue exceeding expenditure, which is a Surplus Budget.
Option (c) Balanced budget — Incorrect: A balanced budget is when revenue EQUALS expenditure (neither surplus nor deficit); the question describes a situation where tax collection EXCEEDS expenditure — this is a Surplus Budget, not a balanced budget.
Option (d) Zero budget — Incorrect: 'Zero budget' or 'Zero-Based Budgeting' (ZBB) is a budgeting methodology where every budget item must be freshly justified each period (starting from zero); it is not a type of budget defined by the relationship between revenue and expenditure; the correct answer for revenue exceeding expenditure is Surplus Budget.
SSC GD 2026 – 20 May 2026 Shift 1 · Indirect taxes and GST

Q62. What was the main objective of Indian states implementing Value Added Tax (VAT) before GST?

  1. (a) Replace all direct taxes with a single tax
  2. (b) Minimize the cascading effect of indirect taxation
  3. (c) Increase fiscal deficit through higher tax expenditure
  4. (d) Protect domestic producers by raising tariffs
Answer & solution

Answer: (b) Minimize the cascading effect of indirect taxation

Correct Answer: Minimize the cascading effect of indirect taxation — Option (b)
The primary objective of implementing VAT (Value Added Tax) by Indian states (starting April 1, 2005) was to minimize the cascading effect (also called the 'tax-on-tax' effect) of the earlier sales tax system. Under the old sales tax regime, tax was levied at multiple stages of the production and distribution chain on goods that had already been taxed, leading to a cascading or pyramiding effect that artificially inflated prices. VAT replaced the earlier sales tax with a system where tax is levied only on the value added at each stage of production/distribution, with input tax credit (ITC) available for taxes already paid. This eliminated the cascading effect and made the tax system more efficient and transparent.
Option (a) Replace all direct taxes with a single tax — Incorrect: VAT is an indirect tax on goods; it does not replace direct taxes. The objective was to replace multiple indirect taxes (sales tax, turnover tax, etc.) and eliminate their cascading effect.
Option (c) Increase fiscal deficit through higher tax expenditure — Incorrect: VAT was implemented to improve tax efficiency and compliance, not to increase fiscal deficits; the intent was to broaden the tax base and reduce tax evasion.
Option (d) Protect domestic producers by raising tariffs — Incorrect: Tariffs are customs duties on imports, unrelated to VAT; VAT is a domestic consumption tax, not a trade protection instrument.
SSC GD 2026 – 18 May 2026 Shift 3 · Union Budget - latest highlights

Q63. According to the Union Budget 2025 announcement, what is the total corpus required for SWAMIH Fund-2?

  1. (a) Rs 10,000 crore
  2. (b) Rs 15,000 crore
  3. (c) Rs 20,000 crore
  4. (d) Rs 25,000 crore
Answer & solution

Answer: (b) Rs 15,000 crore

Correct Answer: Rs 15,000 crore — Option (b)
In the Union Budget 2025 (presented by Finance Minister Nirmala Sitharaman), the Government of India announced the creation of SWAMIH Fund-2 with a total corpus of Rs 15,000 crore. SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund was originally launched in 2019 to provide last-mile financing for completing stalled affordable and mid-income housing projects across India. SWAMIH Fund-1 successfully helped complete and deliver thousands of stalled housing units. SWAMIH Fund-2, with a larger corpus of Rs 15,000 crore, aims to extend this success and complete more stalled housing projects, providing relief to homebuyers who had paid for homes but not received possession.
Option (a) Rs 10,000 crore — Incorrect: The corpus for SWAMIH Fund-2 announced in the Union Budget 2025 was Rs 15,000 crore, not Rs 10,000 crore.
Option (c) Rs 20,000 crore — Incorrect: The announced corpus for SWAMIH Fund-2 was Rs 15,000 crore, not Rs 20,000 crore.
Option (d) Rs 25,000 crore — Incorrect: The Union Budget 2025 announced Rs 15,000 crore for SWAMIH Fund-2, not Rs 25,000 crore.
RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 2 · FRBM Act and fiscal policy

Q64. What is the main objective of India's fiscal policy?

  1. (a) Reducing foreign trade
  2. (b) Increasing inflation
  3. (c) Economic growth and stability
  4. (d) Increasing fiscal deficit
Answer & solution

Answer: (c) Economic growth and stability

Topic: Fiscal Policy of India
Fiscal policy refers to government's use of taxation and expenditure to influence the economy.
Main Objectives:
1. Promote economic growth and development
2. Maintain price stability and control inflation
3. Ensure equitable distribution of income
4. Generate employment opportunities
5. Reduce fiscal deficit (not increase it)
Options 1, 2, and 4 are contrary to sound fiscal policy goals.
Answer: Option 3 → Economic growth and stability
RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 3 · FRBM Act and fiscal policy

Q65. In which year did the Indian Parliament enact the Fiscal Responsibility and Budget Management (FRBM) Act to promote fiscal prudence?

  1. (a) 1998
  2. (b) 1991
  3. (c) 2005
  4. (d) 2003
Answer & solution

Answer: (d) 2003

Fiscal Responsibility and Budget Management (FRBM) Act
Enacted by Indian Parliament in2003.
Objective: Promote fiscal discipline and reduce fiscal deficit.
Key provisions: Targets for fiscal deficit, revenue deficit, and debt levels.
Answer: Option 4 → 2003
RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 3 · Direct taxes

Q66. Which of the following committees has focused on tax reforms in India?

  1. (a) Vijay L Kelkar Committee
  2. (b) Rangarajan Committee
  3. (c) Malhotra Committee
  4. (d) Narasimham Committee
Answer & solution

Answer: (a) Vijay L Kelkar Committee

Topic: Tax Reform Committees in India
Vijay L Kelkar Committee (2002)- Focused on direct and indirect tax reforms, roadmap for Fiscal Responsibility and Budget Management (FRBM).
Other Committees:
Rangarajan Committee - Economic reforms and pricing policies
Malhotra Committee - Insurance sector reforms
Narasimham Committee - Banking and financial sector reforms
Answer: Option 1 → Vijay L Kelkar Committee
RRB NTPC UG CBT-1 2025-26 – 8 May 2026 Shift 1 · FRBM Act and fiscal policy

Q67. In which year did the Indian Parliament enact the Fiscal Responsibility and Budget Management Act to institutionalise financial discipline and ensure long-term macroeconomic stability?

  1. (a) 2003
  2. (b) 2006
  3. (c) 2000
  4. (d) 2009
Answer & solution

Answer: (a) 2003

Fiscal Responsibility and Budget Management (FRBM) Act
Enacted by Indian Parliament in2003.
Purpose: Institutionalise financial discipline, reduce fiscal deficit, and ensure long-term macroeconomic stability.
Key provisions: Set targets for fiscal deficit and revenue deficit as percentage of GDP.
Answer: Option 1 → 2003
SSC GD 2026 – 7 May 2026 Shift 1 · Union Budget - latest highlights

Q68. PM Dhan-Dhanya Krishi Yojana, launched in July 2025,
targets 100 low-performing agricultural districts with an annual outlay of ₹24,000 crore for ___ years.

  1. (a) 3
  2. (b) 5
  3. (c) 6
  4. (d) 10
Answer & solution

Answer: (c) 6

Correct Answer: 6 years — Option (c)
The PM Dhan-Dhanya Krishi Yojana was launched in July 2025 with an annual outlay of ₹24,000 crore, targeting 100 low-performing agricultural districts across India for a period of 6 years. The scheme aims to improve agricultural productivity, provide credit access, promote crop diversification, and enhance irrigation in these underperforming districts. The program focuses on districts with below-average agricultural output and aims to bring them at par with better-performing districts.
Option (a) 3 years — Incorrect: The PM Dhan-Dhanya Krishi Yojana is designed for a 6-year period, not 3 years.
Option (b) 5 years — Incorrect: The scheme runs for 6 years with an annual outlay of ₹24,000 crore, not 5 years.
Option (d) 10 years — Incorrect: The scheme duration is 6 years; 10 years would overstate the scheme's timeline.
SSC GD 2026 – 6 May 2026 Shift 1 · Deficits (fiscal, revenue, primary)

Q69. Which of the following is NOT a way to finance a budgetary deficit?
I. Borrowings II. Taxation

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (d) Neither I nor II

Correct Answer: Neither I nor II — Option (d)
A budgetary deficit occurs when the government's expenditure exceeds its revenue. The standard ways to finance a budgetary deficit include: Borrowings (domestic and external — government bonds, Treasury bills), Taxation (increasing tax revenue), Deficit financing (printing money), and Drawing down reserves. Both Statement I (Borrowings) and Statement II (Taxation) ARE genuine ways to finance a budgetary deficit. Since the question asks which is NOT a way to finance a deficit, and both I and II ARE valid methods, the answer is 'Neither I nor II' — meaning neither statement qualifies as 'NOT a way to finance a deficit'.
Option (a) Only I — Incorrect: Borrowings IS a standard method of financing a budgetary deficit (government borrows from markets via bonds); it should NOT be excluded.
Option (b) Only II — Incorrect: Taxation IS a way to finance a budgetary deficit by increasing government revenue; it should NOT be excluded.
Option (c) Both I and II — Incorrect: Both borrowings and taxation are valid deficit financing methods; claiming both are NOT ways is incorrect.
SSC GD 2026 – 6 May 2026 Shift 3 · Finance Commission and tax devolution

Q70. Which Finance Commission first recommended GST compensation to states?

  1. (a) 12th Finance Commission
  2. (b) 13th Finance Commission
  3. (c) 14th Finance Commission
  4. (d) 15th Finance Commission
Answer & solution

Answer: (b) 13th Finance Commission

Correct Answer: 13th Finance Commission — Option (b)
The 13th Finance Commission (2010–2015), chaired by Vijay Kelkar, was the first to recommend GST compensation to states. It recommended that states be compensated for any revenue loss arising from the implementation of the Goods and Services Tax (GST). The Commission suggested a mechanism to ensure that states would not suffer financially during the transition to the GST regime. This recommendation laid the groundwork for the GST compensation framework that was later incorporated in the Constitution (101st Amendment) Act, 2016.
Option (a) 12th Finance Commission — Incorrect: The 12th Finance Commission (2005–2010), chaired by C. Rangarajan, dealt with fiscal consolidation and debt relief; it did not specifically recommend GST compensation.
Option (c) 14th Finance Commission — Incorrect: The 14th Finance Commission (2015–2020), chaired by Y.V. Reddy, increased states' share in central taxes to 42%; GST compensation was by then already being implemented.
Option (d) 15th Finance Commission — Incorrect: The 15th Finance Commission (2020–2026) deals with the current period; the GST compensation recommendation came from the 13th Finance Commission.
SSC GD 2026 – 6 May 2026 Shift 3 · Revenue and capital receipts and expenditure

Q71. In the context of the Indian budget, which of the following is included in Revenue Expenditure?

  1. (a) Subsidies
  2. (b) Expenditure on acquisition of fighter aircraft
  3. (c) Expenditure on acquisition of naval ships
  4. (d) Expenditure on construction of expressways
Answer & solution

Answer: (a) Subsidies

Correct Answer: Subsidies — Option (a)
In the Indian budget, Revenue Expenditure refers to government spending that does not create assets or reduce liabilities — it is recurring in nature and relates to the normal running of government. Subsidies (on food, fertilizers, fuel, etc.) are a major component of Revenue Expenditure because they are current transfers/payments that do not create physical assets. Other components of Revenue Expenditure include salaries of government employees, interest payments, pensions, and maintenance expenditure.
Option (b) Expenditure on acquisition of fighter aircraft — Incorrect: Acquisition of fighter aircraft creates a defence asset and is classified as Capital Expenditure (under the defence capital budget).
Option (c) Expenditure on acquisition of naval ships — Incorrect: Naval ships are capital assets; their acquisition falls under Capital Expenditure, not Revenue Expenditure.
Option (d) Expenditure on construction of expressways — Incorrect: Construction of expressways creates a long-term physical asset (infrastructure); it is Capital Expenditure, not Revenue Expenditure.
SSC GD 2026 – 5 May 2026 Shift 3 · Union Budget - latest highlights

Q72. What was the budget allocation for the Maritime Development Fund in 2025?

  1. (a) ₹5,000 crore
  2. (b) ₹10,000 crore
  3. (c) ₹25,000 crore
  4. (d) ₹50,000 crore
Answer & solution

Answer: (c) ₹25,000 crore

Correct Answer: ₹25,000 crore — Option (c)
In the Union Budget 2025-26, the Government of India allocated ₹25,000 crore for the Maritime Development Fund (MDF). This fund was announced to boost India's maritime sector, support port development, enhance shipping infrastructure, promote shipbuilding, and strengthen coastal and inland waterway transport. The allocation reflects India's ambition to develop its maritime economy, improve port efficiency, and increase India's share in global shipping — in line with the Maritime India Vision 2030.
Option (a) ₹5,000 crore — Incorrect: ₹5,000 crore significantly understates the Maritime Development Fund allocation announced in Budget 2025.
Option (b) ₹10,000 crore — Incorrect: The budget allocated ₹25,000 crore to the Maritime Development Fund, not ₹10,000 crore.
Option (d) ₹50,000 crore — Incorrect: ₹50,000 crore overstates the allocation; the actual figure announced was ₹25,000 crore.
SSC GD 2026 – 4 May 2026 Shift 2 · FRBM Act and fiscal policy

Q73. What is the main objective of the Fiscal Responsibility and Budget Management (FRBM) Act?

  1. (a) To control money supply
  2. (b) To manage exports
  3. (c) To promote cooperative banking
  4. (d) To reduce fiscal deficit
Answer & solution

Answer: (d) To reduce fiscal deficit

Correct Answer: To reduce fiscal deficit — Option (d)
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted to institutionalize fiscal discipline in India. Its primary objective is to reduce and eliminate revenue deficit, bring down the fiscal deficit to manageable levels, and ensure long-term macroeconomic stability. The Act mandates the government to set annual fiscal targets and present medium-term fiscal policy statements.
Option (a) To control money supply — Incorrect: Controlling money supply is the function of the Reserve Bank of India (RBI) through monetary policy, not the FRBM Act.
Option (b) To manage exports — Incorrect: Export management is handled by DGFT and trade policies, not the FRBM Act.
Option (c) To promote cooperative banking — Incorrect: Cooperative banking promotion is handled by NABARD and state cooperative laws, not the FRBM Act.
SSC GD 2026 – 30 April 2026 Shift 1 · FRBM Act and fiscal policy

Q74. If the government adopts a contractionary fiscal policy, then ____

  1. (a) It reduces public spending or increases taxes
  2. (b) It prints more money
  3. (c) It reduces taxes
  4. (d) It increases public spending
Answer & solution

Answer: (a) It reduces public spending or increases taxes

Correct Answer: It reduces public spending or increases taxes — Option (a)
If the government adopts a contractionary fiscal policy, it reduces public spending or increases taxes (or both). Definition of Contractionary Fiscal Policy: Contractionary (restrictive) fiscal policy involves government actions to reduce aggregate demand in the economy; It is the opposite of expansionary fiscal policy; Purpose: Used to cool down an overheated economy, reduce inflation, and address budget deficits; Tools of contractionary fiscal policy: Reducing government expenditure (cutting public spending on infrastructure, welfare programs, etc.); Increasing tax rates (income tax, corporate tax, GST, etc.); Reducing subsidies; Outcome: Reduced aggregate demand → slower economic growth → lower inflation; When used: During periods of high inflation, economic overheating, or when the government wants to reduce fiscal deficit; Example: If inflation is high at 8-10%, the government may reduce subsidies, cut unnecessary public spending, and increase taxes to reduce money in circulation.
Option (b) It prints more money — Incorrect: Printing more money is a monetary policy action (by the central bank/RBI), not fiscal policy; it is also associated with expansionary (not contractionary) policy; contractionary fiscal policy specifically involves reducing spending or increasing taxes.
Option (c) It reduces taxes — Incorrect: Reducing taxes is a feature of EXPANSIONARY fiscal policy (to stimulate economic activity); contractionary fiscal policy does the opposite — it INCREASES taxes (or reduces spending) to cool down the economy.
Option (d) It increases public spending — Incorrect: Increasing public spending is a feature of EXPANSIONARY fiscal policy; contractionary fiscal policy involves REDUCING public spending (along with increasing taxes) to reduce aggregate demand and control inflation.
RRB NTPC GL CBT-1 2025-26 – 18 March 2026 Shift 2 · Union Budget - latest highlights

Q75. In the Union Budget of India 2025–26 (presented on 1 February 2025), the Government proposed raising the FDI cap in the insurance sector from 74% to what level (subject to specified conditions)?

  1. (a) 49%
  2. (b) 100%
  3. (c) 80%
  4. (d) 90%
Answer & solution

Answer: (b) 100%

Budget presented: 1 February 2025
Key Announcement:
FDI cap in insurance sector raised from74% to 100%
(subject to specified conditions)
This allows complete foreign ownership in Indian insurance companies
Answer: Option 2 → 100%
RRB NTPC GL CBT-1 2025-26 – 18 March 2026 Shift 3 · Union Budget - latest highlights

Q76. Which of the following was the capital expenditure (capex) announced for FY 2025-26 in the Union Budget of India?

  1. (a) ₹11.21 lakh crore
  2. (b) ₹8 lakh crore
  3. (c) ₹10.0 lakh crore
  4. (d) ₹13.5 lakh crore
Answer & solution

Answer: (a) ₹11.21 lakh crore

The Finance Minister announced the Union Budget 2025-26 in Parliament.
Key Announcement: Capital Expenditure (Capex) allocation for infrastructure and development projects was set at₹11.21 lakh crore.
This represents a significant investment in nation-building activities including roads, railways, and digital infrastructure.
Answer: Option 1 → ₹11.21 lakh crore
RRB NTPC GL CBT-1 2025-26 – 17 March 2026 Shift 1 · FRBM Act and fiscal policy

Q77. During recession, which type of Fiscal Policy should be used?

  1. (a) Expansionary Fiscal Policy
  2. (b) Neutral Fiscal Policy
  3. (c) Stable Fiscal Policy
  4. (d) Contractionary Fiscal Policy
Answer & solution

Answer: (a) Expansionary Fiscal Policy

Recession = Low economic growth + High unemployment + Low demand
Expansionary Fiscal Policyis used to boost economy:
→ Increased government spending
→ Tax cuts to increase disposable income
→ Higher public investments
This stimulates demand, creates jobs, and revives growth.
Answer: Option 1 → Expansionary Fiscal Policy
RRB NTPC GL CBT-1 2025-26 – 16 March 2026 Shift 1 · FRBM Act and fiscal policy

Q78. In December 2025, the Finance Minister called on states to manage their debt within the limits prescribed under which fiscal framework?

  1. (a) Monetary Policy
  2. (b) FRBM
  3. (c) NITI Aayog
  4. (d) GST
Answer & solution

Answer: (b) FRBM

Topic: Fiscal Framework for State Debt Management
FRBM = Fiscal Responsibility and Budget Management Act.
It sets limits on government borrowing and deficit levels.
States must keep debt within FRBM prescribed limits
Other options: Monetary Policy (RBI interest rates), NITI Aayog (think tank), GST (tax system).
None of these set debt limits for states.
Answer: Option 2 → FRBM
RRB NTPC GL CBT-1 2025-26 – 16 March 2026 Shift 1 · Union Budget - latest highlights

Q79. Under the Union Budget 2025–26, the FDI limit in the insurance sector was increased from:

  1. (a) 74% to 100%
  2. (b) 51% to 100%
  3. (c) 26% to 49%
  4. (d) 49% to 74%
Answer & solution

Answer: (a) 74% to 100%

Topic: Union Budget 2025-26 - FDI in Insurance
Key fact 1: Previous FDI limit in insurance was 74%.
Key fact 2: Budget 2025-26 increased it to 100%.
Key fact 3: This allows full foreign ownership in insurance companies.
Answer: Option 1 → 74% to 100%
RRB Technician Grade III 2025-26 – 9 March 2026 Shift 2 · Union Budget - latest highlights

Q80. Under the new scheme for first-time Women, SC and ST entrepreneurs, announced in the Union Budget 2025-26, what is the maximum loan amount that can be availed?

  1. (a) ₹1 crore
  2. (b) ₹50 lakh
  3. (c) ₹2 crore
  4. (d) ₹5 crore
Answer & solution

Answer: (c) ₹2 crore

The Union Budget 2025-26 introduced a new scheme for first-time Women, SC, and ST entrepreneurs.
Under this scheme, the maximum loan amount available is ₹2 crore.
This is intended to support entrepreneurship among these groups with substantial financial assistance.
Hence, the correct maximum loan amount is ₹2 crore.
RRB Technician Grade III 2025-26 – 6 March 2026 Shift 1 · Budget-announced schemes and missions

Q81. Which of the following initiatives was introduced in India during Union budget 2020-21 to support farmers by enabling efficient air transportation of agricultural produce across domestic and international routes?

  1. (a) Rural Export Enhancement Initiative
  2. (b) Krishi Air Connect Programme
  3. (c) Krishi Udan Scheme
  4. (d) National Farm Logistics Mission
Answer & solution

Answer: (c) Krishi Udan Scheme

Option 3 is correct: Krishi Udan Scheme was launched in the Union Budget 2020-21.
It aims to help farmers transport agricultural produce quickly and efficiently by air, covering domestic and international routes.
This scheme reduces transportation time and wastage for perishable crops.
Other options are either incorrect or not related to the 2020-21 budget initiatives for farmers.
Thus, Krishi Udan Scheme is the initiative introduced to support farmers through air transport of agricultural goods.
Option 3 is the right answer.
SSC MTS 2025 – 20 February 2026 Shift 2 · FRBM Act and fiscal policy

Q82. As per the Fiscal Responsibility and Budget Management Act-2003, the Indian government shall not borrow from the _____ except by way of advances to meet temporary excess of cash disbursements over cash receipts.

  1. (a) State Bank of India
  2. (b) Reserve Bank of India
  3. (c) National Bank for Rural Development
  4. (d) Small Industries Development Bank of India
Answer & solution

Answer: (b) Reserve Bank of India

Correct Answer: Reserve Bank of India (Option 2)
As per the FRBM Act, 2003, the Central Government shall not borrow from the Reserve Bank of India (RBI) except by way of ways and means advances (WMA) to meet temporary excess of cash disbursements over cash receipts. This provision was meant to end the practice of automatic monetization of fiscal deficit (i.e., the government printing money to fund its deficit).
Why other options are wrong:
Option 1 – SBI is a commercial bank; the FRBM restriction specifically applies to borrowing from the central bank (RBI).
Option 3 – NABARD deals with agricultural and rural development finance; not the subject of this FRBM provision.
Option 4 – SIDBI deals with small industries finance; not the subject of this FRBM provision.
RRB JE CBT-1 2025-26 – 20 February 2026 · Union Budget - latest highlights

Q83. How much fund is allotted to the Khelo India (national programme for development of sports) for FY26?

  1. (a) ₹1,000 crore
  2. (b) ₹1,200 crore
  3. (c) ₹1,600 crore
  4. (d) ₹1,400 crore
Answer & solution

Answer: (a) ₹1,000 crore

ForFY 2025–26, theKhelo India (National Programme for Development of Sports)scheme was allocated₹1,000 crorein the Union Budget.
Correct Answer: ₹1,000 crore
SSC MTS 2025 – 19 February 2026 Shift 1 · Revenue and capital receipts and expenditure

Q84. Which of the following is the non-debt creating capital receipt?
I. Recovery of loans
II. Proceeds from the sale of public sector unit

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

The correct answer is option 3.
Capital receipts of the government are classified as debt-creating and non-debt creating.
Non-debt creating capital receipts do not increase the government's liabilities:
I. Recovery of loans — when the government recovers loans it had earlier given to states or others, it receives money without incurring any new debt. This is non-debt creating.
II. Proceeds from the sale of public sector units (disinvestment) — selling government assets generates receipts without creating any new borrowing or debt obligation. This is also non-debt creating.
Both I and II are correct examples of non-debt creating capital receipts.
Option 1 is incorrect: Only I would exclude disinvestment proceeds, which is also a non-debt creating receipt.
Option 2 is incorrect: Only II would exclude loan recovery, which is also non-debt creating.
Option 4 is incorrect: Both statements are valid non-debt creating capital receipts.
SSC MTS 2025 – 19 February 2026 Shift 2 · Direct taxes

Q85. Which of the following is NOT an example of Indirect Tax?

  1. (a) Corporation tax
  2. (b) Entertainment tax
  3. (c) Service tax
  4. (d) Sales tax
Answer & solution

Answer: (a) Corporation tax

The correct answer is option 1.
Corporation tax (corporate income tax) is a Direct Tax — it is levied directly on the income/profits of companies and is paid directly to the government by the corporation. The burden cannot be shifted to another person.
Indirect taxes, on the other hand, are collected by intermediaries and passed on to the end consumer:
Entertainment tax — levied on entertainment services, collected from consumers indirectly.
Service tax — levied on services, passed on to consumers.
Sales tax — levied on sale of goods, passed on to buyers.
Option 2 is incorrect as a 'NOT' answer: Entertainment tax is an indirect tax — it is collected from consumers through service providers.
Option 3 is incorrect as a 'NOT' answer: Service tax is an indirect tax.
Option 4 is incorrect as a 'NOT' answer: Sales tax is an indirect tax.
SSC MTS 2025 – 19 February 2026 Shift 3 · Union Budget - latest highlights

Q86. In Digital Agriculture Mission, an amount of about Rs. _____ Crore has been allocated for the FY 2025-26.

  1. (a) 54.97
  2. (b) 24.97
  3. (c) 74.97
  4. (d) 104.97
Answer & solution

Answer: (a) 54.97

Correct Answer: 54.97 Crore (Option 1)
The Digital Agriculture Mission (DAM) was approved by the Government of India in September 2024 to build a digital public infrastructure for agriculture. For Financial Year 2025-26, an amount of approximately Rs. 54.97 Crore has been allocated under this mission to develop digital tools, farmer registries, and agri -tech platforms.
Why other options are wrong:
Options 2 (24.97), 3 (74.97), and 4 (104.97) do not match the allocated budget figure for FY 2025-26.
SSC MTS 2025 – 19 February 2026 Shift 3 · Deficits (fiscal, revenue, primary)

Q87. The budgetary deficit is financed by which of the following?

  1. (a) Only by taxation
  2. (b) Only by borrowing
  3. (c) Only by printing money
  4. (d) Either by taxation, borrowing or printing money
Answer & solution

Answer: (d) Either by taxation, borrowing or printing money

Correct Answer: Either by taxation, borrowing or printing money (Option 4)
A budgetary deficit occurs when government expenditure exceeds government revenue. It can be financed through three methods:
1. Taxation – raising taxes to collect more revenue.
2. Borrowing – taking loans from internal or external sources (issuing government bonds).
3. Printing money (deficit financing) – the central bank creates new money to fund the deficit, which can cause inflation.
Governments typically use a combination of all three methods. Relying exclusively on any single method would be economically impractical.
RRB JE CBT-1 2025-26 – 19 February 2026 · Direct taxes

Q88. Which of the following was NOT a major recommendation of the Kelkar Task Force (2002) on direct taxes?

  1. (a) Elimination of the minimum alternate tax on corporate entities
  2. (b) Elimination of the standard deduction for salaried taxpayers
  3. (c) Reduction in corporate tax rate to 40 percent for domestic companies
  4. (d) Extension of PAN to cover all economic agents/citizens
Answer & solution

Answer: (c) Reduction in corporate tax rate to 40 percent for domestic companies

The Kelkar Task Force (2002) recommended measures to rationalise and simplify direct taxes in India.
It suggested the elimination of minimum alternate tax (MAT) on corporate entities to reduce tax litigation and improve tax system fairness.
It also recommended removal of the standard deduction for salaried taxpayers to widen the tax base and simplify calculations.
Extension of PAN (Permanent Account Number) to all economic agents/citizens was advised to improve tax compliance and tracking.
However, it did NOT recommend reducing the corporate tax rate to 40% for domestic companies; this was not part of their major recommendations.
Hence, Option 3 is the correct answer as the recommendation that was NOT made by the Kelkar Task Force.
SSC MTS 2025 – 18 February 2026 Shift 1 · Revenue and capital receipts and expenditure

Q89. In the context of Budget, which of the following is the part of Revenue receipts?
I. Personal Income tax
II. Corporation tax
III. Borrowings

  1. (a) Only I
  2. (b) Only I and II
  3. (c) Only III
  4. (d) I, II and III
Answer & solution

Answer: (b) Only I and II

Revenue receipts include Personal Income tax (I) and Corporation tax (II) — both are tax revenues that do not create any liability for the government. Borrowings (III) are Capital receipts, not Revenue receipts, as they create a repayment obligation. Hence, only I and II are Revenue receipts.
SSC MTS 2025 – 17 February 2026 Shift 1 · Indirect taxes and GST

Q90. In which year service tax was introduced in India?

  1. (a) 1991
  2. (b) 1994
  3. (c) 2005
  4. (d) 2008
Answer & solution

Answer: (b) 1994

Service tax was introduced in India in 1994 under the Finance Act, 1994, by Finance Minister Manmohan Singh in the Union Budget. It was initially levied at 5% on just three services. 1991 was the year of economic liberalization; 2005 and 2008 are incorrect years for the introduction of service tax.
SSC MTS 2025 – 11 February 2026 Shift 1 · Direct taxes

Q91. The Chelliah Committee recommended in January _____ that the prevailing rates of import duties be rationalised and lowered.

  1. (a) 1991
  2. (b) 1995
  3. (c) 1996
  4. (d) 1993
Answer & solution

Answer: (d) 1993

The correct answer is 1993 (Option 4). The Tax Reforms Committee, chaired by Raja Chelliah (Chelliah Committee), submitted its interim and final reports during 1991–1993. In January 1993, it specifically recommended rationalisation and lowering of import duty rates as part of India's economic liberalisation . Options 1 (1991), 2 (1995), and 3 (1996) are incorrect years for this specific recommendation.
Delhi Police Head Constable (Ministerial) 2025-26 – 12 January 2026 Shift 1 · Union Budget - latest highlights

Q92. As per Budget 2025, which new scheme aims to enhance productivity in 100 low-performing districts?

  1. (a) Rural Prosperity & Resilience Prog.
  2. (b) PM Dhan-Dhaanya Krishi Yojana
  3. (c) National Food Security Mission
  4. (d) PM Gram Sadak Yojana
Answer & solution

Answer: (b) PM Dhan-Dhaanya Krishi Yojana

PM Dhan-Dhaanya Krishi Yojana is correct. Announced in Union Budget 2025-26 by Finance Minister Nirmala Sitharaman, PM Dhan-Dhaanya Krishi Yojana is a new agricultural scheme targeting 100 districts with low agricultural productivity. It aims to improve crop yields, strengthen irrigation, develop post-harvest storage, and enhance credit access to farmers in these underperforming districts.
• Rural Prosperity & Resilience Prog.: This was also announced in Budget 2025 but focuses on addressing rural unemployment and skilling of rural youth — not specifically agricultural productivity in 100 low-performing districts.
• National Food Security Mission: An existing scheme focused on increasing production of rice, wheat, and pulses across India; it was not the new scheme announced in Budget 2025 for 100 low-performing districts.
• PM Gram Sadak Yojana: A rural road connectivity scheme; unrelated to agricultural productivity enhancement.
Delhi Police Head Constable (Ministerial) 2025-26 – 7 January 2026 Shift 2 · Deficits (fiscal, revenue, primary)

Q93. Which among the following correctly denotes the Primary Deficit?

  1. (a) Revenue Expenditure minus Revenue Receipts
  2. (b) Sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market borrowing of the government
  3. (c) Budgetary Deficit plus Government market borrowings and liabilities
  4. (d) Fiscal Deficit minus Interest Payments
Answer & solution

Answer: (d) Fiscal Deficit minus Interest Payments

Correct Answer: Option 4 – Fiscal Deficit minus Interest Payments
Primary Deficit = Fiscal Deficit – Interest Payments
It represents the gap between the government's total expenditure (excluding interest payments) and its total receipts. It shows how much the government is borrowing to meet current expenditure other than interest obligations. A zero primary deficit means the government borrows only to service past debt.
Key Deficits:
• Revenue Deficit = Revenue Expenditure – Revenue Receipts
• Fiscal Deficit = Total Expenditure – Total Receipts (excluding borrowings)
• Primary Deficit = Fiscal Deficit – Interest Payments
• Monetised Deficit = Net RBI credit to the government
Why other options are wrong:
Option 1 (Revenue Exp – Revenue Receipts): This is the formula for Revenue Deficit, not Primary Deficit.
Option 2 (RBI treasury bills + market borrowing): This describes Monetised Deficit.
Option 3 (Budgetary Deficit + market borrowings): This is close to the formula for Fiscal Deficit, not Primary Deficit.
Delhi Police Constable (Exe) 2025-26 – 6 January 2026 Shift 1 · FRBM Act and fiscal policy

Q94. Which term is used to describe the government's policy of using taxation and public spending to influence the economy?

  1. (a) Monetary Policy
  2. (b) Fiscal Policy
  3. (c) Trade Policy
  4. (d) Foreign Policy
Answer & solution

Answer: (b) Fiscal Policy

The correct answer is (b) Fiscal Policy.
Fiscal Policy refers to the government's use of taxation (revenue) and public expenditure (spending) to influence the macroeconomy — controlling economic growth, inflation, unemployment, and income distribution. In India, the Union Budget presented annually by the Finance Minister is the primary fiscal policy instrument.
(a) Monetary Policy: Controlled by the Reserve Bank of India (RBI); uses interest rates, money supply, and credit control to manage inflation and economic growth; not taxation/spending.
(c) Trade Policy: Relates to regulations governing international trade — tariffs, import-export restrictions, trade agreements; not the same as domestic taxation/spending to influence the economy.
(d) Foreign Policy: Relates to a nation's external relations and diplomacy with other countries; unrelated to using taxation and public spending to manage the domestic economy.
Delhi Police Constable (Exe) 2025-26 – 5 January 2026 Shift 3 · Revenue and capital receipts and expenditure

Q95. What is the technical term for the government's total income from all sources, including taxes?

  1. (a) Government Expenditure
  2. (b) Government Revenue
  3. (c) Government Deficit
  4. (d) Government Debt
Answer & solution

Answer: (b) Government Revenue

The correct answer is (b) Government Revenue.
Government Revenue refers to the total income of the government from all sources — including tax revenue (income tax, GST, customs duty, etc.) and non-tax revenue (dividends, interest, fees, fines, etc.). It is used to finance government expenditure.
(a) Government Expenditure: The total spending by the government on public services, infrastructure, salaries, and debt repayment; the opposite side of the fiscal equation.
(c) Government Deficit: The shortfall when government expenditure exceeds government revenue (Deficit = Expenditure minus Revenue); not the term for total income.
(d) Government Debt: The accumulated borrowings of the government over time; not the term for annual income.
Delhi Police Constable (Exe) 2025-26 – 4 January 2026 Shift 2 · FRBM Act and fiscal policy

Q96. In India, fiscal policy is formulated by:

  1. (a) Reserve Bank of India (RBI)
  2. (b) Ministry of Finance
  3. (c) NITI Aayog
  4. (d) Securities and Exchange Board of India (SEBI)
Answer & solution

Answer: (b) Ministry of Finance

Fiscal policy, which covers government spending, taxation, and public borrowing, is formulated and implemented by the Ministry of Finance in India.
(a) Incorrect: The Reserve Bank of India (RBI) formulates monetary policy (controlling money supply and interest rates), not fiscal policy.
(c) Incorrect: NITI Aayog is a policy think tank and advisory body, not the authority that formulates fiscal policy.
(d) Incorrect: SEBI is a market regulatory body for securities and capital markets, unrelated to fiscal policy.
Delhi Police Constable (Exe) 2025-26 – 2 January 2026 Shift 3 · Direct taxes

Q97. The 'Raja Chelliah Committee' was appointed to recommend reforms in which specific sector?

  1. (a) Tax Structure
  2. (b) Stock Market
  3. (c) Space Technology
  4. (d) Sports
Answer & solution

Answer: (a) Tax Structure

The Raja J. Chelliah Committee (Tax Reforms Committee) was appointed in 1991 to recommend comprehensive reforms to India's tax structure. It recommended reducing income tax rates, broadening the tax base, simplifying indirect taxes, and introducing a VAT system.
(a) Incorrect: Stock market reforms were addressed by the Narasimham Committee (banking/financial sector reforms, 1991–1998); not the Chelliah Committee.
(b) Incorrect: Space technology policy is guided by ISRO and the Department of Space; no Chelliah Committee addressed this.
(c) Incorrect: Sports policy is managed by the Ministry of Youth Affairs and Sports; the Chelliah Committee was specifically for tax structure reform.
Delhi Police Constable (Exe) 2025-26 – 30 December 2025 Shift 2 · Revenue and capital receipts and expenditure

Q98. Money that the government spends on day-to-day running, like paying salaries and pensions, is called?

  1. (a) Revenue Expenditure
  2. (b) Capital Expenditure
  3. (c) Investment
  4. (d) Deficit
Answer & solution

Answer: (a) Revenue Expenditure

Revenue Expenditure refers to government spending on day-to-day operations such as paying salaries, pensions, interest on debt, and subsidies. It does not create assets and is met from revenue receipts.
(b) Incorrect: Capital Expenditure is spending on creating or acquiring long-term assets like infrastructure, buildings, and machinery.
(c) Incorrect: Investment refers to funds allocated to create wealth or income-generating assets, distinct from routine operational spending.
(d) Incorrect: Deficit refers to the shortfall between government revenues and expenditures, not a type of spending itself.
Delhi Police Constable (Exe) 2025-26 – 29 December 2025 Shift 1 · Deficits (fiscal, revenue, primary)

Q99. A situation where the government's total revenue is more than its total expenditure is called?

  1. (a) Budget Deficit
  2. (b) Budget Surplus
  3. (c) Balanced Budget
  4. (d) Fiscal Debt
Answer & solution

Answer: (b) Budget Surplus

A Budget Surplus occurs when the government's total revenue exceeds its total expenditure. This is considered a positive fiscal position as the government has extra funds available.
(a) Incorrect: Budget Deficit = expenditure > revenue (opposite scenario).
(c) Incorrect: Balanced Budget = revenue equals expenditure exactly.
(d) Incorrect: Fiscal Debt is the accumulated total of all past borrowings by the government.
Delhi Police Constable (Exe) 2025-26 – 29 December 2025 Shift 2 · Union Budget - components and process

Q100. What is the 'Fiscal Year' (also known as the Financial Year) in India?

  1. (a) January 1 to December 31
  2. (b) April 1 to March 31
  3. (c) July 1 to June 30
  4. (d) October 1 to September 30
Answer & solution

Answer: (b) April 1 to March 31

In India, the Fiscal Year (Financial Year) runs from April 1 to March 31 of the following year. The Union Budget is presented before the beginning of the new fiscal year. This period is used for all government accounting, taxation, and corporate financial reporting purposes.
(a) Incorrect: January 1 to December 31 is the calendar year and is followed in countries like the USA.
(c) Incorrect: July 1 to June 30 is the fiscal year followed by countries like Australia.
(d) Incorrect: October 1 to September 30 is the fiscal year followed by the United States federal government.
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