UPSC Prelims Practice Questions — Union Budget 2026-27: Rural Transformation through Decentralization

Q1. Under the 16th Finance Commission's grants to Rural Local Bodies for 2026-31 (about ₹4,35,236 crore), which one of the following constitutes the single largest component of the total?

  • A. The basic grant
  • B. The performance-based grant
  • C. The tied grant for water management
  • D. The tied grant for sanitation and solid waste management

Q2. The award period of the 16th Finance Commission, whose grants substantially raise untied transfers to Panchayats, spans how many financial years?

  • A. Four years
  • B. Five years
  • C. Six years
  • D. Ten years

Q3. In the three-tier Panchayati Raj structure institutionalised by the 73rd Constitutional Amendment, which body operates at the apex, i.e. the district level?

  • A. Gram Panchayat
  • B. Panchayat Samiti
  • C. Zilla Parishad
  • D. Gram Sabha

Q4. With reference to the constitutional provisions for local self-government, consider the following statements: 1. The 73rd Amendment inserted Part IX and the Eleventh Schedule, whereas the 74th Amendment inserted Part IX-A and the Twelfth Schedule. 2. The Eleventh Schedule lists 29 functional subjects for Panchayats, while the Twelfth Schedule lists 18 subjects for Municipalities. 3. Both the Eleventh and the Twelfth Schedules were part of the original Constitution as adopted in 1950. Which of the statements given above is/are correct?

  1. The 73rd Amendment inserted Part IX and the Eleventh Schedule, whereas the 74th Amendment inserted Part IX-A and the Twelfth Schedule.
  2. The Eleventh Schedule lists 29 functional subjects for Panchayats, while the Twelfth Schedule lists 18 subjects for Municipalities.
  3. Both the Eleventh and the Twelfth Schedules were part of the original Constitution as adopted in 1950.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In the Union Budget 2026-27, the allocation for Pradhan Mantri Awas Yojana-Gramin (PMAY-G) is closest to which one of the following amounts?

  • A. ₹19,000 crore
  • B. ₹19,200 crore
  • C. ₹54,916.70 crore
  • D. ₹95,692 crore

Q6. The PIB backgrounder cites a 211% rise in the rural development outlay over a decade. This decadal rise is measured against the outlay of which base year?

  • A. 2011-12
  • B. 2014-15
  • C. 2016-17
  • D. 2020-21

Q7. With reference to Pradhan Mantri Awas Yojana-Gramin (PMAY-G), consider the following statements: 1. It is the restructured version of the erstwhile Indira Awas Yojana. 2. It is implemented by the Ministry of Rural Development. 3. It was launched in November 2016. 4. It provides housing assistance exclusively to eligible urban households. Which of the statements given above are correct?

  1. It is the restructured version of the erstwhile Indira Awas Yojana.
  2. It is implemented by the Ministry of Rural Development.
  3. It was launched in November 2016.
  4. It provides housing assistance exclusively to eligible urban households.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 3 and 4 only

Q8. Which one of the following is the Union Government's flagship programme dedicated specifically to providing pucca houses to eligible rural households?

  • A. Pradhan Mantri Awas Yojana-Gramin
  • B. Pradhan Mantri Awas Yojana-Urban
  • C. Pradhan Mantri Gram Sadak Yojana
  • D. Deendayal Antyodaya Yojana-NRLM

Q9. The Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), which has mobilised around 10.05 crore women into Self-Help Groups, is implemented by which Union Ministry?

  • A. Ministry of Rural Development
  • B. Ministry of Panchayati Raj
  • C. Ministry of Women and Child Development
  • D. Ministry of Skill Development and Entrepreneurship

Q10. The Pradhan Mantri Gram Sadak Yojana (PMGSY), launched in 2000, was conceived as a flagship Centrally Sponsored Scheme primarily for which one of the following objectives?

  • A. All-weather single road connectivity to unconnected rural habitations
  • B. Construction of pucca houses for the rural poor
  • C. Guaranteed wage employment in rural areas
  • D. Provision of piped drinking water to rural households

Q11. The Rashtriya Gram Swaraj Abhiyan (RGSA), aimed at strengthening the institutional capacity of Panchayati Raj Institutions, is implemented under the authority of which Union Ministry?

  • A. Ministry of Rural Development
  • B. Ministry of Panchayati Raj
  • C. Ministry of Home Affairs
  • D. Ministry of Housing and Urban Affairs

Q12. In the context of the Budget 2026-27 rural decentralisation strategy, 'Localisation of Sustainable Development Goals (LSDGs)' in Panchayats primarily refers to which one of the following?

  • A. Integrating nine thematic goals into Gram Panchayat Development Plans so that SDGs are pursued at the grassroots level
  • B. Ranking States on a composite SDG index prepared by NITI Aayog
  • C. Channelling international climate finance directly to district administrations
  • D. Reserving one-third of SDG-linked funds for urban local bodies