UPSC Prelims Practice Questions — ₹12.2 LAKH CRORE PUBLIC CAPEX PROPOSED IN FY2026-27
Q1. In the context of the Union Budget, the term 'capital expenditure' most precisely refers to which one of the following?
- A. Government spending that creates or acquires physical/financial assets or reduces liabilities (e.g. loans repaid)
- B. Recurring government spending on salaries, subsidies, pensions and interest payments
- C. Expenditure financed entirely from borrowings and disinvestment proceeds
- D. Funds transferred to States as their share of central taxes under the Finance Commission award
Q2. With reference to the public capital expenditure proposed in the Union Budget FY2026-27, consider the following statements:
1. At ₹12.2 lakh crore, it is higher than the ₹11.2 lakh crore of the Budget Estimates for 2025-26.
2. It represents roughly a six-fold rise over the ₹2 lakh crore level of FY2014-15.
3. It reflects a slowdown in year-on-year capex growth to below 5%.
Which of the statements given above is/are correct?
- At ₹12.2 lakh crore, it is higher than the ₹11.2 lakh crore of the Budget Estimates for 2025-26.
- It represents roughly a six-fold rise over the ₹2 lakh crore level of FY2014-15.
- It reflects a slowdown in year-on-year capex growth to below 5%.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. In the Union Budget 2026-27, the seven new High-Speed Rail corridors have been conceptualised primarily as which one of the following?
- A. City-to-city 'growth connectors' linking major economic hubs
- B. Freight-only corridors built to decongest existing passenger lines
- C. Suburban rapid-transit corridors within a single metropolitan region
- D. Strategic border-area rail links intended mainly for defence mobility
Q4. How many new High-Speed Rail corridors were announced as inter-city 'growth connectors' in the Union Budget 2026-27?
- A. Five
- B. Six
- C. Seven
- D. Nine
Q5. The operationalisation of the 20 new National Waterways announced in the Union Budget 2026-27 is to begin with which one of the following?
- A. NW-5 in Odisha, connecting the Talcher-Angul mineral belt and Kalinga Nagar to Paradeep and Dhamra ports
- B. NW-1 on the Ganga-Bhagirathi-Hooghly river system
- C. NW-2 on the Brahmaputra
- D. NW-3, the West Coast Canal in Kerala
Q6. Consider the following statements about National Waterways in India:
1. Under the National Waterways Act, 2016, a total of 111 waterways have been declared as National Waterways.
2. The National Waterways Act, 2016 came into force in April 2016.
3. The 20 new National Waterways announced in Budget 2026-27 are to be operationalised over the next ten years.
Which of the statements given above is/are correct?
- Under the National Waterways Act, 2016, a total of 111 waterways have been declared as National Waterways.
- The National Waterways Act, 2016 came into force in April 2016.
- The 20 new National Waterways announced in Budget 2026-27 are to be operationalised over the next ten years.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. Consider the following statements about India's Dedicated Freight Corridors (DFCs):
1. The Eastern Dedicated Freight Corridor runs from Ludhiana to Sonnagar.
2. The Western Dedicated Freight Corridor connects Jawaharlal Nehru Port (JNPT) to Dadri.
3. The new freight corridor announced in Budget 2026-27 runs as an East-West corridor from Dankuni to Surat.
Which of the statements given above is/are correct?
- The Eastern Dedicated Freight Corridor runs from Ludhiana to Sonnagar.
- The Western Dedicated Freight Corridor connects Jawaharlal Nehru Port (JNPT) to Dadri.
- The new freight corridor announced in Budget 2026-27 runs as an East-West corridor from Dankuni to Surat.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q8. The Eastern and Western Dedicated Freight Corridors together have a total sanctioned route length of approximately how many kilometres?
- A. 1,610 km
- B. 2,843 km
- C. 3,360 km
- D. 4,000 km