UPSC Prelims Practice Questions — Ministry of Finance Year Ender 2025 Department of Economic Affairs

Question 1

Apart from the Chairman, how many members constitute the Sixteenth Finance Commission?

Accepted Answer

4

Answer

3

Answer

5

Answer

6

Question 2

Under Article 280 of the Constitution, the President is required to constitute a Finance Commission at the expiration of every ___ year (or at such earlier time as considered necessary).

Accepted Answer

fifth

Answer

third

Answer

fourth

Answer

sixth

Question 3

In the context of Finance Commission recommendations, the term 'vertical devolution' refers to:

Accepted Answer

the share of the divisible pool of central taxes transferred from the Centre to the States as a whole

Answer

the distribution of the divisible pool of central taxes among the States inter se

Answer

grants-in-aid provided to rural and urban local bodies under Articles 243-I and 243-Y

Answer

the sharing of tax revenue between a State government and its local bodies

Question 4

In the context of the Sixteenth Finance Commission's report submitted to the President of India on 17 November 2025, the term 'award period' is best defined as:

Accepted Answer

the five-year period for which the Commission's recommendations on tax devolution and grants apply

Answer

the period during which the Commission holds consultations with the Union, States and local bodies

Answer

the period within which the President must compulsorily table the report in Parliament

Answer

the tenure for which the Chairman and members hold office in the Commission

Question 5

The Sixteenth Finance Commission submitted its report to the President of India for an award period spanning how many financial years?

Accepted Answer

5

Answer

4

Answer

6

Answer

10

Question 6

The Department of Economic Affairs Year Ender 2025 organised the Department's reforms and work around how many broad thematic verticals/areas?

Accepted Answer

6

Answer

4

Answer

5

Answer

7

Question 7

Within the Ministry of Finance, the Department of Economic Affairs (DEA) is best described as the nodal department for:

Accepted Answer

macroeconomic management, capital markets, and India's engagement with multilateral financial institutions

Answer

disinvestment and management of the Government's equity in Central Public Sector Enterprises

Answer

formulation and administration of direct and indirect tax policy

Answer

expenditure management and release of funds to Union Ministries

Question 8

As on 15 September 2025, the SWAMIH Fund (Special Window for Affordable and Mid-Income Housing) had provided funding to how many investments (projects)?

Accepted Answer

139

Answer

118

Answer

152

Answer

171

Question 9

The 'SEBI Check' facility, rolled out with effect from 1 October 2025 to let investors verify the authenticity of UPI IDs and the bank details of intermediaries, was introduced under the aegis of which authority?

Accepted Answer

Securities and Exchange Board of India

Answer

Reserve Bank of India

Answer

National Payments Corporation of India

Answer

Department of Financial Services

Question 10

As highlighted in the DEA Year Ender 2025, between June 2024 and March 2025 the Department of Economic Affairs approved how many International Finance Corporation (IFC) investment proposals amounting to US$2.8 billion?

Accepted Answer

27

Answer

21

Answer

33

Answer

41

UPSC Prelims Practice Questions — Ministry of Finance Year Ender 2025 Department of Economic Affairs

Q1. Apart from the Chairman, how many members constitute the Sixteenth Finance Commission?

Q2. Under Article 280 of the Constitution, the President is required to constitute a Finance Commission at the expiration of every ___ year (or at such earlier time as considered necessary).

Q3. In the context of Finance Commission recommendations, the term 'vertical devolution' refers to:

Q4. In the context of the Sixteenth Finance Commission's report submitted to the President of India on 17 November 2025, the term 'award period' is best defined as:

Q5. The Sixteenth Finance Commission submitted its report to the President of India for an award period spanning how many financial years?

Q6. The Department of Economic Affairs Year Ender 2025 organised the Department's reforms and work around how many broad thematic verticals/areas?

Q7. Within the Ministry of Finance, the Department of Economic Affairs (DEA) is best described as the nodal department for:

Q8. As on 15 September 2025, the SWAMIH Fund (Special Window for Affordable and Mid-Income Housing) had provided funding to how many investments (projects)?

Q9. The 'SEBI Check' facility, rolled out with effect from 1 October 2025 to let investors verify the authenticity of UPI IDs and the bank details of intermediaries, was introduced under the aegis of which authority?

Q10. As highlighted in the DEA Year Ender 2025, between June 2024 and March 2025 the Department of Economic Affairs approved how many International Finance Corporation (IFC) investment proposals amounting to US$2.8 billion?