UPSC Prelims Practice Questions — Budget to boost economy, India’s global competitiveness: India Inc.

Q1. With reference to the Union Budget 2026-27 vis-à-vis the Revised Estimates of 2025-26, consider the following statements: Which of the statements given above is/are correct?

  1. The fiscal deficit is projected to decline from 4.4% of GDP to 4.3% of GDP.
  2. Central government's budgeted capital expenditure rises from ₹11.2 lakh crore to ₹12.2 lakh crore.
  3. The debt-to-GDP ratio is projected to rise from 55.6% to 56.1%.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. The medium-term debt-consolidation glide path under the Union Budget 2026-27, which targets central government debt of about 50% of GDP by March 2031, is anchored statutorily in which one of the following?

  • A. Public Debt Act, 1944
  • B. Reserve Bank of India Act, 1934
  • C. Fiscal Responsibility and Budget Management Act, 2003
  • D. Banking Regulation Act, 1949

Q3. Which of the following were announced as new or augmented funds in the Union Budget 2026-27? Which of the above is/are NOT correctly identified?

  1. A dedicated SME Growth Fund with an outlay of ₹10,000 crore.
  2. Biopharma SHAKTI with an outlay of ₹10,000 crore over five years.
  3. Additional ₹2,000 crore corpus for the Self-Reliant India Fund.
  4. A National Manufacturing Mission corpus of ₹50,000 crore for global value-chain integration.
  • A. 1 and 3
  • B. 2 and 4
  • C. 4 only
  • D. 3 and 4

Q4. Which one of the following is the flagship dedicated fund proposed in the Union Budget 2026-27 to 'create future champions' by incentivising select small and medium enterprises?

  • A. Self-Reliant India Fund
  • B. SME Growth Fund of ₹10,000 crore
  • C. Fund of Funds for Startups
  • D. Pradhan Mantri MUDRA Yojana corpus

Q5. With reference to 'Biopharma SHAKTI' announced in the Union Budget 2026-27, consider the following: Which of the above is/are correctly identified?

  1. A total outlay of ₹10,000 crore over five years.
  2. An aspirational target of capturing 5% of the global biopharmaceutical market share.
  3. Setting up of 3 new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgradation of 7 existing ones.
  4. Establishment of 50 new AIIMS-linked biomanufacturing parks under the initiative.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2 and 4 only
  • D. 1, 3 and 4