UPSC Prelims Practice Questions — Centre aiming for a 4.3% fiscal deficit for 2026-27

Q1. As per the fiscal prudence path articulated in the Union Budget 2026-27, which one of the following is the PRIMARY fiscal anchor that the Central Government will now target?

  • A. Gross fiscal deficit as a percentage of GDP
  • B. Revenue deficit as a percentage of GDP
  • C. Primary deficit as a percentage of GDP
  • D. Central Government debt as a percentage of GDP

Q2. The statutory framework under which the Central Government commits to its fiscal deficit and debt-to-GDP targets, including the 4.3% target for 2026-27, is provided by which one of the following?

  • A. The Public Debt Act, 1944
  • B. The Fiscal Responsibility and Budget Management Act, 2003
  • C. The Reserve Bank of India Act, 1934
  • D. The Appropriation Act passed each year by Parliament

Q3. Within the Ministry of Finance, which one of the following is responsible for preparing the Union Budget and operationalising the fiscal deficit and debt-to-GDP targets announced for 2026-27?

  • A. Department of Expenditure
  • B. Department of Revenue
  • C. Budget Division, Department of Economic Affairs
  • D. Department of Financial Services

Q4. In the context of the 4.3% target announced for 2026-27, 'fiscal deficit' of the Union Government is best defined as which one of the following?

  • A. The excess of revenue expenditure over revenue receipts in a financial year
  • B. The excess of the Government's total expenditure over its total receipts excluding borrowings
  • C. The excess of total expenditure over total receipts including borrowings
  • D. The fiscal deficit minus interest payments on past borrowings