UPSC Prelims Practice Questions — A gradual fiscal correction

Q1. In the Andhra Pradesh Budget 2026-27, which one of the following sectors/schemes received the largest budgetary allocation?

  • A. NTR Bharosa (Social Pensions)
  • B. Annadata Sukhibhava (Agriculture)
  • C. Education
  • D. Amaravati Capital City construction

Q2. With reference to the Andhra Pradesh Budget 2026-27, consider the following statements: 1. The fiscal deficit has been pegged at 3.8% of GSDP. 2. The revenue deficit has been pegged at about 1.1% of GSDP. 3. The capital outlay has been reduced compared to the 2025-26 Budget Estimate. 4. The 16th Finance Commission has recommended an annual fiscal deficit ceiling of 3.5% of GSDP for States during 2026-31. Which of the statements given above is/are NOT correct?

  1. The fiscal deficit has been pegged at 3.8% of GSDP.
  2. The revenue deficit has been pegged at about 1.1% of GSDP.
  3. The capital outlay has been reduced compared to the 2025-26 Budget Estimate.
  4. The 16th Finance Commission has recommended an annual fiscal deficit ceiling of 3.5% of GSDP for States during 2026-31.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q3. The statutory framework that mandates progressive reduction of fiscal and revenue deficits — invoked in commentary on the Andhra Pradesh Budget 2026-27's consolidation path — was enacted by Parliament in which one of the following years?

  • A. 2000
  • B. 2003
  • C. 2005
  • D. 2017

Q4. With reference to the Andhra Pradesh Budget 2026-27, consider the following: 1. NTR Bharosa 2. Annadata Sukhibhava 3. Amaravati Capital City development 4. PM-KISAN Which of the above are correctly identified as schemes/items that received distinct State budgetary allocations in the Andhra Pradesh Budget 2026-27?

  1. NTR Bharosa
  2. Annadata Sukhibhava
  3. Amaravati Capital City development
  4. PM-KISAN
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q5. As per the Andhra Pradesh Budget 2026-27, by approximately what percentage has the State's capital outlay been increased over the previous year's level?

  • A. 12%
  • B. 25%
  • C. 47%
  • D. 75%