UPSC Prelims Practice Questions — Centre sets aside ₹57,381 crore to address ‘global headwinds’

Q1. Under which one of the following constitutional provisions did the Centre seek Parliament's approval for the additional expenditure (including the ₹57,381 crore Economic Stabilisation Fund allocation) through the Second Supplementary Demands for Grants for 2025-26?

  • A. Article 115
  • B. Article 112
  • C. Article 267
  • D. Article 266

Q2. Which one of the following was set up as the Centre's dedicated buffer to provide fiscal headroom against 'global headwinds', with a targeted total outlay of about ₹1 lakh crore of which ₹57,381 crore was provided in the Second Supplementary Demands for Grants for 2025-26?

  • A. Economic Stabilisation Fund
  • B. Contingency Fund of India
  • C. Price Stabilisation Fund
  • D. National Investment Fund

Q3. In the context of the Centre moving the Second Supplementary Demands for Grants, what precisely does a 'Supplementary Demand for Grants' mean?

  • A. A request for parliamentary approval of additional expenditure during a financial year, over and above the amounts already authorised in that year's Budget
  • B. An advance withdrawal from the Contingency Fund of India to meet urgent expenditure pending later parliamentary authorisation
  • C. A demand to regularise expenditure already incurred in excess of the amount granted for a service, sought after the financial year ends
  • D. A grant enabling the government to meet expenditure for part of a year pending the passage of the full Budget

Q4. With reference to the Economic Stabilisation Fund announced in 2025-26, consider the following four items. Which of the above is/are correctly identified as a feature or stated purpose of the Fund?

  1. It is intended to provide fiscal headroom to respond to global headwinds, supply chain disruptions and external economic shocks.
  2. An amount of ₹57,381 crore was provided for it through the Second Supplementary Demands for Grants for 2025-26.
  3. It has a targeted total outlay of about ₹1 lakh crore, with the balance to be met from savings of ministries/departments and additional supplementary grants.
  4. The Fund is to be financed entirely through external borrowings from the International Monetary Fund.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4