UPSC Prelims Practice Questions — Defence in Union Budget 2026–27
Q1. In the Union Budget 2026-27, the Ministry of Defence allocation of ₹7.85 lakh crore constitutes what share of the total Central Government expenditure — the highest among all Ministries?
- A. 11.4%
- B. 12.9%
- C. 14.67%
- D. 16.2%
Q2. The single largest allocation among all Ministries in the Union Budget 2026-27, at ₹7.85 lakh crore, was made to which Ministry?
- A. Ministry of Finance
- B. Ministry of Home Affairs
- C. Ministry of Defence
- D. Ministry of Road Transport and Highways
Q3. The defence outlay of ₹7.85 lakh crore, being expenditure not 'charged' on the Consolidated Fund of India, is submitted to and voted by the Lok Sabha in the form of ministry-wise Demands for Grants under which Article of the Constitution?
- A. Article 110
- B. Article 112
- C. Article 113
- D. Article 114
Q4. Capital acquisition proposals funded from the defence capital budget receive 'Acceptance of Necessity' (AoN) from which apex body chaired by the Raksha Mantri?
- A. Cabinet Committee on Security
- B. Defence Acquisition Council
- C. Defence Procurement Board
- D. Defence Planning Committee
Q5. The policy of reserving 75% of the defence capital procurement budget for domestic industry — carried forward in Budget 2026-27 — was first announced by the Raksha Mantri (at Aero India) for which financial year?
- A. FY 2021-22
- B. FY 2022-23
- C. FY 2023-24
- D. FY 2025-26
Q6. In the Union Budget 2026-27, what amount out of the Capital Acquisition budget has been earmarked specifically for procurement from domestic industries?
- A. ₹1.39 lakh crore
- B. ₹1.85 lakh crore
- C. ₹2.19 lakh crore
- D. ₹1.71 lakh crore
Q7. The Budget documents that record the year-on-year defence allocations from 2023-24 to 2026-27 (the Annual Financial Statement and the Demands for Grants) are compiled and presented in Parliament by which Ministry?
- A. Ministry of Defence
- B. Ministry of Finance
- C. NITI Aayog
- D. Prime Minister's Office
Q8. Among the following, which financial year recorded the highest year-on-year percentage increase in the Ministry of Defence Budget Estimates?
- A. 2024-25 (Interim)
- B. 2024-25 (Regular)
- C. 2025-26
- D. 2026-27
Q9. With reference to the allocation to the Defence Research and Development Organisation (DRDO) in the Union Budget 2026-27, consider the following:
1. The total allocation to DRDO is ₹29,100.25 crore.
2. Of this, ₹17,250.25 crore is earmarked for capital expenditure.
3. The allocation has been raised from ₹26,816.82 crore in FY 2025-26.
4. DRDO's total allocation is lower than that of the Ex-Servicemen Contributory Health Scheme (ECHS).
Which of the above is/are correctly identified?
- The total allocation to DRDO is ₹29,100.25 crore.
- Of this, ₹17,250.25 crore is earmarked for capital expenditure.
- The allocation has been raised from ₹26,816.82 crore in FY 2025-26.
- DRDO's total allocation is lower than that of the Ex-Servicemen Contributory Health Scheme (ECHS).
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q10. With reference to the Ex-Servicemen Contributory Health Scheme (ECHS) in the Union Budget 2026-27, consider the following statements:
1. Its allocation of ₹12,100 crore is 45.49% higher than the FY 2025-26 Budget Estimates.
2. The allocation funds the Medical Treatment Related Expenditure (MTRE) of veterans.
3. ECHS is the sole component of veterans' welfare spending and covers only serving personnel.
Which of the statements given above is/are correct?
- Its allocation of ₹12,100 crore is 45.49% higher than the FY 2025-26 Budget Estimates.
- The allocation funds the Medical Treatment Related Expenditure (MTRE) of veterans.
- ECHS is the sole component of veterans' welfare spending and covers only serving personnel.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q11. With reference to the Innovations for Defence Excellence (iDEX) scheme, consider the following:
1. It is implemented through the Defence Innovation Organisation (DIO).
2. DIO is a Section 8 (not-for-profit) company floated by the Defence PSUs BEL and HAL.
3. The scheme was formulated by the Department of Defence Production.
4. Under iDEX, financial support is provided exclusively to foreign Original Equipment Manufacturers (OEMs).
Which of the above is/are correctly identified?
- It is implemented through the Defence Innovation Organisation (DIO).
- DIO is a Section 8 (not-for-profit) company floated by the Defence PSUs BEL and HAL.
- The scheme was formulated by the Department of Defence Production.
- Under iDEX, financial support is provided exclusively to foreign Original Equipment Manufacturers (OEMs).
- A. 1, 2 and 3
- B. 1, 2, 3 and 4
- C. 2 and 4 only
- D. 1 and 4 only
Q12. The Annual Financial Statement, which embodies the estimated receipts and expenditure of the Government — including the 2026-27 defence outlay — is laid before both Houses of Parliament for every financial year in pursuance of which Article of the Constitution?
- A. Article 112
- B. Article 113
- C. Article 265
- D. Article 266