UPSC Prelims Practice Questions — Budget 2026-27 must keep the growth momentum

Q1. In the Union Budget 2026-27 presented in February 2026, what is the estimated Total Expenditure of the Central Government (Budget Estimates 2026-27)?

  • A. ₹48.21 lakh crore
  • B. ₹50.65 lakh crore
  • C. ₹53.47 lakh crore
  • D. ₹56.10 lakh crore

Q2. The fiscal-deficit glide path that Budget 2026-27 of the Union Government continues to follow derives its primary statutory basis from which one of the following?

  • A. Public Debt Act, 1944
  • B. Fiscal Responsibility and Budget Management Act, 2003
  • C. Government Securities Act, 2006
  • D. Banking Regulation Act, 1949

Q3. With reference to Budget Estimates 2026-27 compared to Budget Estimates 2025-26, consider the following statements: 1. The fiscal deficit target as a percentage of GDP is lower in BE 2026-27 than in BE 2025-26. 2. The public capital expenditure outlay has been raised in BE 2026-27 over BE 2025-26. 3. The total allocation to the Ministry of Defence is lower in BE 2026-27 than in BE 2025-26 in absolute terms. Which of the statements given above is/are correct?

  1. The fiscal deficit target as a percentage of GDP is lower in BE 2026-27 than in BE 2025-26.
  2. The public capital expenditure outlay has been raised in BE 2026-27 over BE 2025-26.
  3. The total allocation to the Ministry of Defence is lower in BE 2026-27 than in BE 2025-26 in absolute terms.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. Within the capital expenditure on Defence Services in the Union Budget 2026-27, which one of the following components accounts for the largest share of the allocation?

  • A. Aircraft and Aero Engines
  • B. Naval Fleet
  • C. Construction Works
  • D. Other Equipment

Q5. Consider the following pairs claimed to be among the Budget Estimates 2026-27 of the Union Government: 1. Fiscal deficit — 4.3% of GDP 2. Public capital expenditure — ₹12.22 lakh crore 3. Debt-to-GDP ratio — 50% of GDP 4. Total allocation to the Ministry of Defence — ₹7.85 lakh crore Which of the above is/are correctly identified?

  1. Fiscal deficit — 4.3% of GDP
  2. Public capital expenditure — ₹12.22 lakh crore
  3. Debt-to-GDP ratio — 50% of GDP
  4. Total allocation to the Ministry of Defence — ₹7.85 lakh crore
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4