UPSC Prelims Practice Questions — What does the Budget offer urban India?

Q1. With reference to the Union Budget 2026-27 and its predecessor budget for urban India, consider the following statements: 1. The overall Budget Estimate for the Ministry of Housing and Urban Affairs in 2026-27 is lower than the Budget Estimate of 2025-26 in nominal terms. 2. The combined Budget Estimate for PMAY-Urban (classic plus 2.0) in 2026-27 is lower than the Revised Estimate of 2025-26. 3. The allocation for PM-SVANidhi in BE 2026-27 is more than double its allocation in BE 2025-26. Which of the statements given above is/are correct?

  1. The overall Budget Estimate for the Ministry of Housing and Urban Affairs in 2026-27 is lower than the Budget Estimate of 2025-26 in nominal terms.
  2. The combined Budget Estimate for PMAY-Urban (classic plus 2.0) in 2026-27 is lower than the Revised Estimate of 2025-26.
  3. The allocation for PM-SVANidhi in BE 2026-27 is more than double its allocation in BE 2025-26.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. In the Union Budget 2026-27, the schemes PMAY-Urban 2.0, PM-SVANidhi and the Deendayal Antyodaya Yojana — National Urban Livelihoods Mission (DAY-NULM) are implemented under which one of the following Union Ministries?

  • A. Ministry of Rural Development
  • B. Ministry of Housing and Urban Affairs
  • C. Ministry of Finance
  • D. Ministry of Social Justice and Empowerment

Q3. In the context of the Union Budget 2026-27 allocations for PMAY-Urban 2.0, what does the 'Interest Subsidy Scheme (ISS)' vertical precisely provide to an eligible beneficiary?

  • A. A one-time direct capital grant of Rs 2.5 lakh to EWS families for construction of a new house
  • B. An interest subsidy of up to Rs 1.80 lakh on a home loan, with a 4% subsidy on the first Rs 8 lakh of the loan for tenures up to 12 years, paid in five annual instalments
  • C. A 35% capital subsidy on the project cost of affordable rental housing complexes built by private developers
  • D. A blanket waiver of stamp duty and registration charges on the first home purchased by EWS/LIG households

Q4. Within the Ministry of Housing and Urban Affairs' Budget Estimates 2026-27, which one of the following is the single largest spending head, accounting for roughly one-third of the ministry's allocation?

  • A. PMAY-Urban (classic and 2.0 combined)
  • B. Metro Projects / Mass Rapid Transit Systems
  • C. AMRUT 2.0
  • D. Smart Cities Mission