UPSC Prelims Practice Questions — A CALIBERATED FISCAL STRATEGY HAS ANCHORED ECONOMIC STABILITY AMID GLOBAL ECONOMIC TURBULENCE: ECONOMIC SURVEY 2025-26

Q1. According to Economic Survey 2025-26, which single fiscal indicator is stated to have narrowed to its lowest level since FY09?

  • A. Revenue deficit
  • B. Gross fiscal deficit
  • C. Primary deficit
  • D. Debt-to-GDP ratio

Q2. In the fiscal framework discussed in Economic Survey 2025-26, the term 'revenue deficit' refers to which one of the following?

  • A. The excess of revenue expenditure over revenue receipts
  • B. The excess of total expenditure over total receipts other than borrowings
  • C. The fiscal deficit less interest payments on outstanding debt
  • D. The excess of capital expenditure over capital receipts

Q3. As per the capital-spending picture in Economic Survey 2025-26, which of the following is the largest single component as a share of GDP in FY26?

  • A. The Centre's own capital expenditure (~3.1% of GDP)
  • B. The States' capital expenditure (~2.4% of GDP)
  • C. Grants-in-aid to States for creation of capital assets
  • D. Defence capital outlay

Q4. The Survey reports 'effective capital expenditure' rising to about 4% of GDP in FY25. This term is best defined as—

  • A. The Centre's capital expenditure plus grants-in-aid given for the creation of capital assets
  • B. The Centre's capital outlay minus repayment of loans by States
  • C. The capital outlay of the Centre alone, excluding all transfers to States
  • D. The capital spending of States financed entirely through SASCI loans

Q5. Under the Special Assistance to States for Capital Investment (SASCI) scheme highlighted in Economic Survey 2025-26, assistance is extended to States in which one of the following forms?

  • A. A 50-year interest-free loan
  • B. An outright grant carrying no repayment obligation
  • C. A 15-year loan at a repo-linked rate of interest
  • D. Equity participation by the Union in State projects

Q6. Consider the following statements about the Special Assistance to States for Capital Investment (SASCI) scheme: 1. It was launched in October 2020 in the wake of the COVID-19 pandemic. 2. It is administered by the Department of Expenditure, Ministry of Finance. 3. The loans provided under it are counted within the States' net annual borrowing ceiling. 4. Its cumulative uptake from FY21 to FY26 was about ₹4.5 lakh crore. Which of the above is/are NOT correct?

  1. It was launched in October 2020 in the wake of the COVID-19 pandemic.
  2. It is administered by the Department of Expenditure, Ministry of Finance.
  3. The loans provided under it are counted within the States' net annual borrowing ceiling.
  4. Its cumulative uptake from FY21 to FY26 was about ₹4.5 lakh crore.
  • A. 1 and 2
  • B. 3 only
  • C. 2 and 4
  • D. 1, 3 and 4

Q7. Economic Survey 2025-26 projects real GDP growth of 7.4% for FY26. 'Real GDP growth', as distinct from nominal GDP growth, is—

  • A. Growth measured at constant prices, i.e., after adjusting for inflation
  • B. Growth measured at current market prices of the year
  • C. Growth of GDP after adding net factor income from abroad
  • D. Growth of GDP after excluding indirect taxes and adding subsidies

Q8. Consider the following statements regarding the growth and price estimates in Economic Survey 2025-26: 1. Real GDP is estimated to grow by 7.4% in FY26. 2. This is higher than the FY25 real GDP growth of 6.5%. 3. Real GDP growth for FY27 is projected in the range of 6.8%–7.2%. 4. Retail inflation in FY26 (April–December) rose to 4.6%. Which of the above is/are correctly identified?

  1. Real GDP is estimated to grow by 7.4% in FY26.
  2. This is higher than the FY25 real GDP growth of 6.5%.
  3. Real GDP growth for FY27 is projected in the range of 6.8%–7.2%.
  4. Retail inflation in FY26 (April–December) rose to 4.6%.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4
  • D. 1, 2, 3 and 4

Q9. Consider the following statements comparing the nature and origin of the Economic Survey: 1. It is prepared by the Department of Economic Affairs, Ministry of Finance, under the guidance of the Chief Economic Adviser. 2. It is a statutory document whose growth projections are legally binding on the subsequent Union Budget. 3. It was first presented in 1950-51 and was initially part of the Budget documents. Which of the statements given above is/are correct?

  1. It is prepared by the Department of Economic Affairs, Ministry of Finance, under the guidance of the Chief Economic Adviser.
  2. It is a statutory document whose growth projections are legally binding on the subsequent Union Budget.
  3. It was first presented in 1950-51 and was initially part of the Budget documents.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. Consider the following statements about the Economic Survey: 1. It is tabled in Parliament, usually a day before the presentation of the Union Budget. 2. Since 1964 it has been presented as a document separate from the Budget papers. 3. It reviews developments in the Indian economy over the preceding twelve months. 4. It is formally released by the Reserve Bank of India rather than the Ministry of Finance. Which of the above is/are NOT correct?

  1. It is tabled in Parliament, usually a day before the presentation of the Union Budget.
  2. Since 1964 it has been presented as a document separate from the Budget papers.
  3. It reviews developments in the Indian economy over the preceding twelve months.
  4. It is formally released by the Reserve Bank of India rather than the Ministry of Finance.
  • A. 1 and 2
  • B. 4 only
  • C. 3 and 4
  • D. 1, 3 and 4

Q11. Consider the following statements on revenue mobilisation and expenditure composition as reported in Economic Survey 2025-26: 1. Revenue expenditure moderated from 13.6% of GDP in FY22 to 10.9% in FY25. 2. The Centre's revenue receipts strengthened to about 9.1% of GDP during 2022-25 from 8.5% during 2016-20. 3. The number of income-tax return filers rose to about 9.2 crore. 4. The moderation in revenue expenditure was achieved mainly through a sharp cut in interest payments. Which of the above is/are NOT correct?

  1. Revenue expenditure moderated from 13.6% of GDP in FY22 to 10.9% in FY25.
  2. The Centre's revenue receipts strengthened to about 9.1% of GDP during 2022-25 from 8.5% during 2016-20.
  3. The number of income-tax return filers rose to about 9.2 crore.
  4. The moderation in revenue expenditure was achieved mainly through a sharp cut in interest payments.
  • A. 4 only
  • B. 1 and 2
  • C. 2, 3 and 4
  • D. 1 and 3

Q12. Economic Survey 2025-26 traces the current fiscal consolidation to a COVID-era peak, when the Union fiscal deficit reached 9.2% of GDP. In which financial year did this peak occur?

  • A. FY21 (2020-21)
  • B. FY20 (2019-20)
  • C. FY22 (2021-22)
  • D. FY23 (2022-23)