UPSC Prelims Practice Questions — Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chairs the Pre-Budget Consultation Meeting with States and UTs (with legislature), New Delhi, today

Q1. The Special Assistance to States for Capital Investment (SASCI) scheme, under which the Centre extends 50-year interest-free loans to States, was launched in which financial year and as part of which broader initiative?

  • A. FY 2020-21, as an Aatmanirbhar Bharat Abhiyan measure
  • B. FY 2019-20, under the National Infrastructure Pipeline
  • C. FY 2021-22, under PM Gati Shakti
  • D. FY 2015-16, on the recommendation of the 14th Finance Commission

Q2. In the financial year 2025-26, into how many parts (Part-I to Part-X style components) is the SASCI scheme structured?

  • A. Six
  • B. Eight
  • C. Ten
  • D. Twelve

Q3. In the context of the pre-Budget consultation for Union Budget 2026-27, the ₹2 lakh crore provided to States under SASCI is best described as—

  • A. 50-year interest-free loans to States for capital expenditure
  • B. outright grants-in-aid to States requiring no repayment
  • C. the States' statutory share in the divisible pool of central taxes
  • D. concessional market borrowings raised directly by States

Q4. With reference to the SASCI scheme figures cited around the pre-Budget consultation for Union Budget 2026-27, consider the following statements: 1. The total SASCI outlay for 2025-26 is ₹1.5 lakh crore. 2. ₹68,000 crore is allocated under Part-I (Untied) of SASCI 2025-26. 3. ₹83,595 crore was disbursed under SASCI 2025-26 till 04.01.2026. 4. The SASCI outlay proposed for 2026-27 is ₹1.5 lakh crore. Which of the statements given above is/are NOT correct?

  1. The total SASCI outlay for 2025-26 is ₹1.5 lakh crore.
  2. ₹68,000 crore is allocated under Part-I (Untied) of SASCI 2025-26.
  3. ₹83,595 crore was disbursed under SASCI 2025-26 till 04.01.2026.
  4. The SASCI outlay proposed for 2026-27 is ₹1.5 lakh crore.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only

Q5. The annual pre-Budget consultations with States—an instrument of cooperative fiscal federalism—are conducted by which of the following?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Department of Expenditure, Ministry of Finance
  • C. Department of Revenue, Ministry of Finance
  • D. NITI Aayog

Q6. Which one of the following bodies concerned with Centre-State fiscal relations is a constitutional body chaired by the Union Finance Minister?

  • A. GST Council
  • B. Finance Commission
  • C. NITI Aayog Governing Council
  • D. Inter-State Council

Q7. With reference to the pre-Budget consultation with States and related fiscal institutions, consider the following statements: 1. The SASCI outlay rose from ₹1.5 lakh crore in 2025-26 to ₹2 lakh crore proposed for 2026-27. 2. The pre-Budget consultation with States is a constitutional requirement under Article 280, whereas the Finance Commission is merely an executive convention. 3. Pre-Budget consultations with States are conducted annually by the Department of Economic Affairs, Ministry of Finance. Which of the statements given above is/are correct?

  1. The SASCI outlay rose from ₹1.5 lakh crore in 2025-26 to ₹2 lakh crore proposed for 2026-27.
  2. The pre-Budget consultation with States is a constitutional requirement under Article 280, whereas the Finance Commission is merely an executive convention.
  3. Pre-Budget consultations with States are conducted annually by the Department of Economic Affairs, Ministry of Finance.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. The pre-Budget consultation with States/UTs held ahead of the Union Budget is best characterised as—

  • A. an annual executive convention with no specific constitutional mandate
  • B. a statutory body constituted under the Fiscal Responsibility and Budget Management Act
  • C. a constitutional body established under Article 280
  • D. a permanent standing committee of the GST Council

Q9. The passage of the Union Budget through Parliament—from its presentation to the passing of the Finance Bill—is generally described as involving how many broad stages?

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

Q10. With reference to the Sixteenth and Fifteenth Finance Commissions, consider the following statements: 1. The 16th Finance Commission is chaired by Dr. Arvind Panagariya and its award period is 2026-27 to 2030-31. 2. The Government has accepted the 16th Finance Commission's recommendation to retain the vertical devolution share at 41 per cent of the divisible pool. 3. The 15th Finance Commission had recommended raising the States' share from 41 per cent to 42 per cent. Which of the statements given above is/are correct?

  1. The 16th Finance Commission is chaired by Dr. Arvind Panagariya and its award period is 2026-27 to 2030-31.
  2. The Government has accepted the 16th Finance Commission's recommendation to retain the vertical devolution share at 41 per cent of the divisible pool.
  3. The 15th Finance Commission had recommended raising the States' share from 41 per cent to 42 per cent.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. In the designation 'Union Minister of State for Finance' (held by Shri Pankaj Chaudhary), the term 'Minister of State' precisely denotes—

  • A. a junior minister who assists a Cabinet Minister and is not necessarily of Cabinet rank
  • B. a minister who represents a particular State in the Union Council of Ministers
  • C. the Chief Minister of a State holding a concurrent Union portfolio
  • D. a minister who in all cases holds independent charge of a full ministry