UPSC Prelims Practice Questions — HIGHLIGHTS OF UNION BUDGET 2026-27

Question 1

In the context of the Union Budget 2026-27, what does 'Kartavya Bhawan' refer to?

Accepted Answer

The new Common Central Secretariat complex that replaced North Block as the venue where the budget was prepared

Answer

The three-fold thematic framework anchoring the budget to the Viksit Bharat 2047 vision

Answer

The paperless digital platform through which the budget was tabled in Parliament

Answer

The redesigned central hall of the new Parliament building where the budget speech was delivered

Question 2

Within the Ministry of Finance, the preparation and presentation of the Union Budget (Annual Financial Statement) is coordinated by which one of the following?

Accepted Answer

Budget Division of the Department of Economic Affairs

Answer

Department of Expenditure

Answer

Department of Revenue

Answer

Department of Financial Services

Question 3

The 'fiscal deficit' pegged at 4.3% of GDP in the Union Budget 2026-27 is best defined as which one of the following?

Accepted Answer

The excess of the government's total expenditure over its total receipts excluding borrowings

Answer

The excess of the government's total expenditure over its total receipts including borrowings

Answer

The excess of revenue expenditure over revenue receipts

Answer

The fiscal deficit reduced by interest payments on past borrowings

Question 4

The Government's fiscal deficit in 2026-27 is financed largely through market borrowings. The management of the Central Government's public debt and market borrowing programme is carried out by which one of the following?

Accepted Answer

Reserve Bank of India

Answer

Securities and Exchange Board of India

Answer

Department of Financial Services

Answer

NITI Aayog

Question 5

With reference to new initiatives announced in the Union Budget 2026-27, consider the following:
1. Biopharma SHAKTI carries an outlay of ₹10,000 crore over five years.
2. The SME Growth Fund is a ₹10,000 crore fund to create future 'Champion' enterprises.
3. AVGC Content Creator Labs are to be established exclusively in 500 colleges and in no schools.
4. Five Regional Medical Hubs are proposed to boost medical tourism.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 4

Answer

1 and 2 only

Answer

2, 3 and 4

Answer

1, 2, 3 and 4

Question 6

The AVGC Content Creator Labs announced in the Union Budget 2026-27 are to be anchored by which one of the following institutions?

Accepted Answer

Indian Institute of Creative Technologies, Mumbai

Answer

Indian Institute of Chemical Technology, Hyderabad

Answer

Indian Institute of Craft and Design, Jaipur

Answer

National Institute of Design, Ahmedabad

Question 7

The total expenditure estimated in the Union Budget 2026-27 (Budget Estimate) is closest to which one of the following?

Accepted Answer

₹53.5 lakh crore

Answer

₹47.7 lakh crore

Answer

₹50.7 lakh crore

Answer

₹56.1 lakh crore

Question 8

In the Union Budget, the 'non-debt receipts' (estimated at ₹36.5 lakh crore in 2026-27) comprise which one of the following?

Accepted Answer

Revenue receipts plus non-debt capital receipts such as recoveries of loans and disinvestment proceeds

Answer

Revenue receipts plus the Government's market borrowings for the year

Answer

Only tax and non-tax revenue receipts of the Government

Answer

Total receipts minus total revenue expenditure

Question 9

With reference to how the present Union Budget process differs from earlier practice, consider the following statements:
1. Since 2017, the Union Budget has been presented on 1 February, advanced from the last working day of February.
2. The Railway Budget, formerly presented separately, was merged with the Union (General) Budget from 2017.
3. The Union Budget has been presented in paperless form since 2021 through the Union Budget Mobile App.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Question 10

The 'Annual Financial Statement' laid before Parliament along with the Union Budget is mandated under which one of the following Articles of the Constitution?

Accepted Answer

Article 112

Answer

Article 110

Answer

Article 265

Answer

Article 266

Question 11

The Union Budget 2026-27 raises public capital expenditure to about ₹12.2 lakh crore. Among the following, which sector accounts for the largest single share of the Centre's capital outlay and leads this capex push?

Accepted Answer

Roads and transport

Answer

Railways

Answer

Defence

Answer

Telecommunications

UPSC Prelims Practice Questions — HIGHLIGHTS OF UNION BUDGET 2026-27

Q1. In the context of the Union Budget 2026-27, what does 'Kartavya Bhawan' refer to?

Q2. Within the Ministry of Finance, the preparation and presentation of the Union Budget (Annual Financial Statement) is coordinated by which one of the following?

Q3. The 'fiscal deficit' pegged at 4.3% of GDP in the Union Budget 2026-27 is best defined as which one of the following?

Q4. The Government's fiscal deficit in 2026-27 is financed largely through market borrowings. The management of the Central Government's public debt and market borrowing programme is carried out by which one of the following?

Q6. The AVGC Content Creator Labs announced in the Union Budget 2026-27 are to be anchored by which one of the following institutions?

Q7. The total expenditure estimated in the Union Budget 2026-27 (Budget Estimate) is closest to which one of the following?

Q8. In the Union Budget, the 'non-debt receipts' (estimated at ₹36.5 lakh crore in 2026-27) comprise which one of the following?

Q10. The 'Annual Financial Statement' laid before Parliament along with the Union Budget is mandated under which one of the following Articles of the Constitution?

Q11. The Union Budget 2026-27 raises public capital expenditure to about ₹12.2 lakh crore. Among the following, which sector accounts for the largest single share of the Centre's capital outlay and leads this capex push?