UPSC Prelims Practice Questions — Welfare promises and fiscal constraints

Q1. Under the FRBM (Amendment) Act, 2018, the Central Government is required to present rolling projections for the two years following the current financial year in respect of how many fiscal indicators?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

Q2. In the horizontal devolution formula recommended by the Sixteenth Finance Commission (2026-31), which one of the following criteria carries the highest weight?

  • A. Population (2011)
  • B. Income Distance
  • C. Contribution to GDP
  • D. Demographic Performance

Q3. In the Union Budget documents, the 'Revised Estimate' (for example, the 2025-26 Revised Estimate fiscal deficit of 4.4% of GDP) is best defined as:

  • A. a revised assessment of receipts and expenditure for the ongoing financial year, made partway through the year
  • B. the estimate of receipts and expenditure presented at the beginning of the financial year
  • C. the audited final accounts of a completed financial year
  • D. the projection of fiscal indicators for the two subsequent financial years

Q4. The official annual assessment that expenditure on social services (Centre and States combined) has been on a rising trend as a proportion of GDP is contained in which one of the following documents?

  • A. The Economic Survey
  • B. The Medium Term Fiscal Policy Statement
  • C. The Finance Commission Report
  • D. The RBI Annual Report

Q5. In the first budget of the BJP government in West Bengal (June 2026), the government announced a drive to fill how many vacant State government posts?

  • A. 50,000
  • B. 75,000
  • C. 1,00,000
  • D. 1,50,000

Q6. A State such as West Bengal, which is already indebted to the Union, requires the consent of the Central Government to raise a fresh loan under which one of the following Articles of the Constitution?

  • A. Article 292
  • B. Article 293
  • C. Article 280
  • D. Article 275
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