UPSC Prelims Practice Questions — Govt. achieves fiscal deficit target of 4.4% for FY26

Q1. The provisional monthly accounts of the Union Government, on the basis of which the achievement of the fiscal deficit target for FY 2025-26 was officially confirmed, are released by which of the following authorities?

  • A. Comptroller and Auditor General of India
  • B. Controller General of Accounts, Ministry of Finance
  • C. Public Accounts Committee of Parliament
  • D. Department of Economic Affairs, Ministry of Finance

Q2. With reference to the Union Budget, consider the following items: 1. Recovery of loans granted by the Centre 2. Proceeds from disinvestment of Central Public Sector Enterprises 3. Market borrowings of the Central Government through dated securities 4. Goods and Services Tax (CGST) collections Which of the above are correctly identified as components of 'non-debt capital receipts' of the Union Government?

  1. Recovery of loans granted by the Centre
  2. Proceeds from disinvestment of Central Public Sector Enterprises
  3. Market borrowings of the Central Government through dated securities
  4. Goods and Services Tax (CGST) collections
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2 and 4 only
  • D. 1, 3 and 4

Q3. With reference to the Union Government's fiscal performance in FY 2025-26 vis-à-vis FY 2024-25, consider the following statements: 1. The fiscal deficit as a percentage of GDP was lower in FY 2025-26 than in FY 2024-25. 2. In achieving the FY 2025-26 target, the absolute cut in capital expenditure below the Revised Estimates exceeded the cut in revenue expenditure. 3. The revenue deficit as a percentage of GDP was higher in FY 2025-26 than in FY 2024-25. Which of the statements given above is/are correct?

  1. The fiscal deficit as a percentage of GDP was lower in FY 2025-26 than in FY 2024-25.
  2. In achieving the FY 2025-26 target, the absolute cut in capital expenditure below the Revised Estimates exceeded the cut in revenue expenditure.
  3. The revenue deficit as a percentage of GDP was higher in FY 2025-26 than in FY 2024-25.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. In FY 2025-26, which one of the following was the LARGEST component of the Union Government's total receipts, excluding borrowings?

  • A. Net tax revenue of the Centre
  • B. Non-tax revenue
  • C. Recovery of loans
  • D. Miscellaneous capital receipts (disinvestment proceeds)

Q5. In the context of the Union Budget, the term 'fiscal deficit' is most precisely defined as:

  • A. The excess of the Government's total expenditure over its total receipts excluding borrowings
  • B. The excess of revenue expenditure over revenue receipts in a given year
  • C. The excess of the Government's total expenditure over its tax revenue alone
  • D. The excess of the Government's interest payments over its non-tax revenue