UPSC Prelims Practice Questions — Accounts of the Government of India for the Financial Year 2025-2026 (Provisional/Unaudited)

Q1. The Office of the Controller General of Accounts (CGA) was created in which year, following the Presidential ordinances that separated accounts from audit in the Union Government?

  • A. 1971
  • B. 1976
  • C. 1980
  • D. 1985

Q2. With reference to the Controller General of Accounts (CGA), consider the following statements:

  1. The CGA is the Principal Accounting Adviser to the Government of India.
  2. Under Article 150 of the Constitution, the CGA prescribes the form of accounts of the Union and the States on the advice of the Comptroller and Auditor General of India.
  3. The CGA audits the accounts of the Union Government and submits the audit report to the President under Article 151.
  4. The Office of the CGA functions under the Department of Expenditure in the Ministry of Finance.
  • A. 1, 2 and 3 only
  • B. 1, 2 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 3 and 4 only

Q3. In the Union Government Accounts published by the Controller General of Accounts, the term 'Fiscal Deficit' specifically refers to which one of the following?

  • A. Excess of revenue expenditure over revenue receipts during the financial year
  • B. Excess of total expenditure over total receipts other than borrowings
  • C. Excess of total expenditure over total receipts other than borrowings, minus interest payments
  • D. Revenue deficit reduced by grants given for creation of capital assets

Q4. The N.K. Singh FRBM Review Committee (2017) recommended that the debt-to-GDP ratio of the Central Government be brought down to what level by FY 2022-23 as the anchor for the fiscal deficit glide path?

  • A. 30 per cent
  • B. 40 per cent
  • C. 50 per cent
  • D. 60 per cent

Q5. In the Provisional Accounts of the Union Government for FY 2025-26 compiled by the Controller General of Accounts, which one of the following constituted the largest single component of Total Receipts?

  • A. Net Tax Revenue (after devolution to States)
  • B. Non-Tax Revenue
  • C. Recovery of Loans
  • D. Miscellaneous Capital Receipts arising from disinvestment of Government equity in PSUs

Q6. With reference to the Provisional Accounts of the Union Government for FY 2025-26 vis-à-vis the Revised Estimates and the previous year, consider the following statements: 1. Total Receipts realised in FY 2025-26 fell short of the Revised Estimates 2025-26 by more than five per cent. 2. Tax devolution to States in FY 2025-26 was higher than in the previous financial year by over ₹1 lakh crore. 3. Within Non-Debt Capital Receipts, Miscellaneous Capital Receipts (including disinvestment proceeds) exceeded Recovery of Loans. Which of the statements given above is/are correct?

  1. Total Receipts realised in FY 2025-26 fell short of the Revised Estimates 2025-26 by more than five per cent.
  2. Tax devolution to States in FY 2025-26 was higher than in the previous financial year by over ₹1 lakh crore.
  3. Within Non-Debt Capital Receipts, Miscellaneous Capital Receipts (including disinvestment proceeds) exceeded Recovery of Loans.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Article 270 of the Constitution of India deals with which one of the following?

  • A. Distribution of net proceeds of taxes levied and collected by the Union between the Union and the States
  • B. Grants-in-aid from the Union to certain States in need of assistance
  • C. Surcharge on certain duties and taxes for purposes of the Union
  • D. Form and manner of maintaining accounts of the Union and the States

Q8. With reference to the divisible pool of Union taxes shared with the States under Article 270 of the Constitution, which of the following are NOT shared with the States?

  1. Corporation tax collected by the Union
  2. Surcharges on taxes and duties levied for the purposes of the Union under Article 271
  3. Cess levied for a specific purpose, such as the GST Compensation Cess
  4. Basic Central Goods and Services Tax (CGST) collected by the Union
  • A. 1 and 3
  • B. 2 and 3
  • C. 1, 2 and 4
  • D. 3 only

Q9. Under which Article of the Constitution of India is the Contingency Fund of India established, into which moneys are paid from time to time to be placed at the disposal of the President to enable advances to meet unforeseen expenditure pending authorisation by Parliament?

  • A. Article 266
  • B. Article 267
  • C. Article 112
  • D. Article 283

Q10. The provisional annual accounts of the Union Government — covering the Consolidated Fund, Contingency Fund and Public Account — are compiled and published by the Controller General of Accounts, which functions under which of the following departments?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Department of Revenue, Ministry of Finance
  • C. Department of Expenditure, Ministry of Finance
  • D. Department of Financial Services, Ministry of Finance

Q11. With reference to the audit reports of the Comptroller and Auditor General (CAG) of India, consider the following statements:

  1. The reports of the CAG relating to the accounts of the Union are submitted to the President, who causes them to be laid before each House of Parliament.
  2. The reports of the CAG relating to the accounts of a State are submitted to the Chief Minister of that State, who causes them to be laid before the State Legislature.
  3. Unlike the form of accounts under Article 150, which is prescribed by the President on the advice of the CAG, the duties and powers of the CAG under Article 149 are prescribed by Parliament.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. Which of the following is/are NOT audited by the Comptroller and Auditor General of India under his statutory mandate flowing from Article 149 and the CAG's (Duties, Powers and Conditions of Service) Act, 1971?

  1. Accounts of all expenditure from the Consolidated Fund of India.
  2. Accounts of all transactions relating to the Contingency Fund of India and the Public Account of India.
  3. Annual accounts of the Reserve Bank of India.
  4. Accounts of bodies and authorities substantially financed from the Consolidated Fund of India.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q13. With reference to the distinction between Revenue Deficit and Effective Revenue Deficit in the Union Budget of India, consider the following statements: 1. While Revenue Deficit is the excess of revenue expenditure over revenue receipts, Effective Revenue Deficit excludes the grants given by the Centre to States or implementing agencies for the creation of capital assets. 2. The concept of Effective Revenue Deficit was introduced on the premise that all grants-in-aid extended by the Centre are necessarily capital in nature. 3. By definition, Effective Revenue Deficit can never exceed Revenue Deficit in any given financial year. Which of the statements given above is/are correct?

  1. While Revenue Deficit is the excess of revenue expenditure over revenue receipts, Effective Revenue Deficit excludes the grants given by the Centre to States or implementing agencies for the creation of capital assets.
  2. The concept of Effective Revenue Deficit was introduced on the premise that all grants-in-aid extended by the Centre are necessarily capital in nature.
  3. By definition, Effective Revenue Deficit can never exceed Revenue Deficit in any given financial year.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q14. Which one of the following budget documents is the only one that is explicitly named in and mandated by Article 112 of the Constitution of India?

  • A. Demands for Grants
  • B. Annual Financial Statement
  • C. Appropriation Bill
  • D. Finance Bill