UPSC Prelims Practice Questions — UNION BUDGET 2026-27 FOCUSES ON 3 KARTAVYAS OF SUSTAINABLE ECONOMIC GROWTH, CAPACITY BUILDING AND SABKA SATH, SABKA VIKAS

Q1. The 'Three Kartavyas' framework that structures the Union Budget 2026-27 was articulated by, and is institutionally anchored in, which one of the following?

  • A. Ministry of Finance
  • B. NITI Aayog
  • C. Ministry of Corporate Affairs
  • D. Ministry of Commerce and Industry

Q2. What is the fiscal deficit for BE 2026-27, expressed as a percentage of GDP, in the Union Budget 2026-27?

  • A. 4.3%
  • B. 4.4%
  • C. 4.5%
  • D. 5.1%

Q3. With reference to the fiscal indicators presented in the Union Budget 2026-27, consider the following statements: 1. The fiscal deficit for BE 2026-27 is estimated at 4.3% of GDP. 2. The debt-to-GDP ratio for BE 2026-27 is estimated at 55.6% of GDP. 3. Public capital expenditure is to be raised to ₹12.2 lakh crore in FY 2026-27. 4. The total expenditure for 2026-27 is estimated at ₹49.6 lakh crore. Which of the statements given above are correctly identified?

  1. The fiscal deficit for BE 2026-27 is estimated at 4.3% of GDP.
  2. The debt-to-GDP ratio for BE 2026-27 is estimated at 55.6% of GDP.
  3. Public capital expenditure is to be raised to ₹12.2 lakh crore in FY 2026-27.
  4. The total expenditure for 2026-27 is estimated at ₹49.6 lakh crore.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q4. Comparing the Union Budget 2026-27 sectoral outlays with the corresponding Budget Estimates of FY 2025-26, consider the following statements: 1. The Defence allocation of ₹7.85 lakh crore for FY 2026-27 is about 15% higher than the BE of FY 2025-26. 2. The Ministry of Education outlay of ₹1,39,289.48 crore marks an 8.27% increase over BE 2025-26. 3. The DRDO allocation for FY 2026-27 has been reduced relative to FY 2025-26. Which of the statements given above are correct?

  1. The Defence allocation of ₹7.85 lakh crore for FY 2026-27 is about 15% higher than the BE of FY 2025-26.
  2. The Ministry of Education outlay of ₹1,39,289.48 crore marks an 8.27% increase over BE 2025-26.
  3. The DRDO allocation for FY 2026-27 has been reduced relative to FY 2025-26.
  • A. 1 and 3 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In the Union Budget 2026-27, which Union Ministry received the single largest budgetary allocation among all ministries?

  • A. Ministry of Defence
  • B. Ministry of Education
  • C. Ministry of Health and Family Welfare
  • D. Ministry of Road Transport and Highways

Q6. With reference to the new funds and schemes announced in the Union Budget 2026-27, consider the following statements: 1. Biopharma SHAKTI has been proposed with an outlay of ₹10,000 crore over five years. 2. The SME Growth Fund has been announced with a corpus of ₹10,000 crore. 3. The Self-Reliant India Fund received an additional allocation of ₹10,000 crore. Which of the statements given above are correct?

  1. Biopharma SHAKTI has been proposed with an outlay of ₹10,000 crore over five years.
  2. The SME Growth Fund has been announced with a corpus of ₹10,000 crore.
  3. The Self-Reliant India Fund received an additional allocation of ₹10,000 crore.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Under the Biopharma SHAKTI initiative announced in the Union Budget 2026-27, how many NEW National Institutes of Pharmaceutical Education and Research (NIPERs) are to be established?

  • A. 3
  • B. 5
  • C. 7
  • D. 10

Q8. The 'Saptarishi' that guided the Union Budget 2023-24 comprised how many priorities?

  • A. 6
  • B. 7
  • C. 9
  • D. 3

Q9. The framework of 'nine priorities' for achieving Viksit Bharat was first articulated in which Union Budget?

  • A. Union Budget 2023-24
  • B. Union Budget 2024-25
  • C. Union Budget 2025-26
  • D. Union Budget 2026-27

Q10. With reference to the macroeconomic estimates cited in the Union Budget 2026-27 context, consider the following statements: 1. India's real GDP is estimated to grow by 7.4% in FY 2025-26. 2. India's nominal GDP growth for FY 2025-26 is estimated at 8.0%. 3. India's nominal GDP for FY 2025-26 is estimated at ₹357.14 lakh crore. 4. India's real GDP grew by 6.4% in Q2 of FY 2025-26. Which of the statements given above are correctly identified?

  1. India's real GDP is estimated to grow by 7.4% in FY 2025-26.
  2. India's nominal GDP growth for FY 2025-26 is estimated at 8.0%.
  3. India's nominal GDP for FY 2025-26 is estimated at ₹357.14 lakh crore.
  4. India's real GDP grew by 6.4% in Q2 of FY 2025-26.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q11. Consider the following statements relating to the poverty-reduction claim and fiscal legislation invoked around the Union Budget: 1. About 24.82 crore Indians escaped multidimensional poverty over a nine-year period, as estimated by the Reserve Bank of India. 2. The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003. 3. The FRBM Act originally set a target of reducing the fiscal deficit to 3% of GDP. Which of the statements given above are correct?

  1. About 24.82 crore Indians escaped multidimensional poverty over a nine-year period, as estimated by the Reserve Bank of India.
  2. The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003.
  3. The FRBM Act originally set a target of reducing the fiscal deficit to 3% of GDP.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3