Economy MCQs for UPSC Prelims — June 2026

Q1. Under the GST (Compensation to States) framework, the compensation payable to a State was computed by assuming a guaranteed annual growth in its protected revenue of which one of the following over the base year 2015-16?

  • A. 14%
  • B. 10%
  • C. 12%
  • D. 16%

Q2. Which one of the following entities provides the shared information-technology backbone for GST registration, return filing and the matching of input tax credit?

  • A. Goods and Services Tax Network (GSTN)
  • B. Central Board of Indirect Taxes and Customs (CBIC)
  • C. Central Board of Direct Taxes (CBDT)
  • D. GST Council Secretariat

Q3. GST subsumed a web of 17+ central and state indirect taxes into a single levy with effect from which one of the following dates?

  • A. 1 July 2017
  • B. 16 September 2016
  • C. 1 April 2017
  • D. 1 April 2010

Q4. Which one of the following financial years recorded the highest-ever gross GST collection of about ₹22.08 lakh crore, with a year-on-year growth of 9.4%?

  • A. FY 2024-25
  • B. FY 2023-24
  • C. FY 2022-23
  • D. FY 2021-22

Q5. Under Article 279A, who is the Chairperson of the Goods and Services Tax Council?

  • A. The Union Finance Minister
  • B. The Prime Minister of India
  • C. The Union Minister of State in charge of Revenue
  • D. The Union Finance Secretary

Q6. As per Article 279A, every decision of the GST Council must be taken by a majority of not less than which one of the following of the weighted votes of the members present and voting?

  • A. Three-fourths
  • B. Two-thirds
  • C. A simple majority (more than one-half)
  • D. Five-sixths

Q7. In the rationalized GST rate structure approved in 2025, the 40% rate is best described as which one of the following?

  • A. A special rate applicable to a small set of select sin and luxury goods
  • B. The new standard rate applicable to all services
  • C. The merit rate applicable to essential and mass-consumption items
  • D. A compensation cess levied in addition to the highest GST slab

Q8. The decision to compress the four-tier GST slab structure into two principal rates of 5% and 18% (with a 40% special rate) was approved at which one of the following?

  • A. The 56th GST Council meeting held in September 2025
  • B. The 53rd GST Council meeting
  • C. The 50th GST Council meeting
  • D. The Union Budget 2025-26 presented in Parliament

Q9. The levy and collection of Central GST (CGST) on intra-State supplies of goods and services is governed primarily by which one of the following statutes?

  • A. The Central Goods and Services Tax Act, 2017
  • B. The Central Sales Tax Act, 1956
  • C. The Finance Act, 1994
  • D. The Constitution (101st Amendment) Act, 2016

Q10. Under India's dual GST model, which one of the following is the component levied and collected by the Central Government on inter-State supplies of goods and services and subsequently apportioned between the Union and the States?

  • A. Integrated GST (IGST)
  • B. Central GST (CGST)
  • C. State GST (SGST)
  • D. Union Territory GST (UTGST)

Q11. With reference to the Constitution (101st Amendment) Act, 2016, consider the following pairings of constitutional Articles with their function in the GST framework: 1. Article 246A — simultaneous power of the Union and the States to legislate on GST 2. Article 269A — levy and collection of GST on inter-State trade by the Government of India, with apportionment between the Union and the States 3. Article 279A — constitution of the Goods and Services Tax Council 4. Article 360 — power to declare a 'GST emergency' suspending State GST powers Which of the above are correctly identified?

  1. Article 246A — simultaneous power of the Union and the States to legislate on GST
  2. Article 269A — levy and collection of GST on inter-State trade by the Government of India, with apportionment between the Union and the States
  3. Article 279A — constitution of the Goods and Services Tax Council
  4. Article 360 — power to declare a 'GST emergency' suspending State GST powers
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q12. Which one of the following most precisely describes the provision introduced by Article 246A of the Constitution of India?

  • A. It confers simultaneous power on Parliament and the State legislatures to make laws on the levy of GST on supply of goods and services
  • B. It empowers only the Government of India to levy and collect GST on inter-State supplies and apportion it between the Union and States
  • C. It establishes the Goods and Services Tax Council as a joint forum of the Centre and the States
  • D. It guarantees compensation to the States for any loss of revenue arising from the introduction of GST

Q13. Under the Centrally Sponsored PMKSY-PDMC component, in what ratio are funds shared between the Centre and the State for general (non-North-Eastern, non-Himalayan) States?

  • A. 50:50
  • B. 60:40
  • C. 75:25
  • D. 90:10

Q14. The Economic Survey 2024-25 noted that 'irrigation intensity' rose from 144.2 per cent to 154.5 per cent. In this context, 'irrigation intensity' refers to:

  • A. the ratio of gross irrigated area to net irrigated area, expressed as a percentage
  • B. the ratio of gross irrigated area to gross cropped area, expressed as a percentage
  • C. the ratio of net irrigated area to total geographical area, expressed as a percentage
  • D. the ratio of area under micro-irrigation to total cultivable area, expressed as a percentage

Q15. Consider the following statements regarding PMKSY's financial parameters: 1. PMKSY for the 2021-26 cycle was approved with a total outlay of Rs.93,068 crore. 2. Within this, the central support component to States is Rs.37,454 crore. 3. The Union Budget 2026-27 allocated Rs.6,587 crore to PMKSY. Which of the statements given above is/are correct?

  1. PMKSY for the 2021-26 cycle was approved with a total outlay of Rs.93,068 crore.
  2. Within this, the central support component to States is Rs.37,454 crore.
  3. The Union Budget 2026-27 allocated Rs.6,587 crore to PMKSY.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q16. The Accelerated Irrigation Benefit Programme (AIBP), now a component of PMKSY, was originally launched by the Government of India in which year to provide central assistance for major and medium irrigation projects?

  • A. 1991-92
  • B. 1996-97
  • C. 2004-05
  • D. 2015-16

Q17. In the context of PMKSY, the description of the scheme as an 'umbrella' Centrally Sponsored Scheme most precisely means that it:

  • A. converged and consolidated several pre-existing irrigation programmes (such as AIBP) under a single integrated framework
  • B. is funded entirely by the Central Government with no State contribution
  • C. is confined exclusively to micro-irrigation through drip and sprinkler systems
  • D. provides crop insurance coverage against irrigation failure

Q18. In which year was the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) launched as an umbrella scheme converging pre-existing irrigation programmes?

  • A. 2014-15
  • B. 2015-16
  • C. 2016-17
  • D. 2019-20

Q19. The dedicated fund created to enable States to mobilise resources for providing top-up incentives to farmers for micro-irrigation beyond PMKSY-PDMC provisions was set up with which one of the following institutions?

  • A. National Bank for Agriculture and Rural Development (NABARD)
  • B. Small Industries Development Bank of India (SIDBI)
  • C. Reserve Bank of India (RBI)
  • D. National Water Development Agency (NWDA)

Q20. With reference to the Per Drop More Crop (PDMC) component and micro-irrigation under PMKSY, consider the following: 1. PDMC promotes water-use efficiency mainly through drip and sprinkler irrigation. 2. A Micro Irrigation Fund (MIF) with a corpus of Rs.5,000 crore has been created under NABARD. 3. The Government of India provides a 3% interest subvention on loans extended to State Governments under the MIF. 4. PDMC is implemented by the Ministry of Jal Shakti. Which of the above is/are correctly identified?

  1. PDMC promotes water-use efficiency mainly through drip and sprinkler irrigation.
  2. A Micro Irrigation Fund (MIF) with a corpus of Rs.5,000 crore has been created under NABARD.
  3. The Government of India provides a 3% interest subvention on loans extended to State Governments under the MIF.
  4. PDMC is implemented by the Ministry of Jal Shakti.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q21. The 'Per Drop More Crop' (PDMC) component of PMKSY, focused on enhancing water-use efficiency through micro-irrigation, is operationalised by which one of the following?

  • A. Department of Agriculture and Farmers Welfare
  • B. Ministry of Jal Shakti
  • C. Department of Land Resources
  • D. National Bank for Agriculture and Rural Development (NABARD)

Q22. The 'Har Khet Ko Pani' (HKKP) component of PMKSY, implemented by the Ministry of Jal Shakti, comprises how many sub-components?

  • A. Two
  • B. Three
  • C. Four
  • D. Six

Q23. Apart from India, the founding members of Project Nexus — the BIS-incubated platform to interlink national instant-payment systems — are Malaysia, the Philippines, Singapore and Thailand. Including India, how many countries form this founding cohort?

  • A. 3
  • B. 4
  • C. 5
  • D. 6

Q24. The Reserve Bank of India derives its statutory authority to regulate and supervise payment systems such as UPI primarily from which one of the following?

  • A. The Payment and Settlement Systems Act, 2007
  • B. The Reserve Bank of India Act, 1934
  • C. The Banking Regulation Act, 1949
  • D. The Information Technology Act, 2000

Q25. According to the data cited in recognising UPI's global standing, approximately what share of global real-time payment transaction volume does UPI account for?

  • A. 39%
  • B. 46%
  • C. 49%
  • D. 59%

Q26. In its June 2025 report, the IMF recognised UPI as the world's largest example of which one of the following?

  • A. Retail fast-payment system by transaction volume
  • B. Cross-border remittance corridor by transaction value
  • C. Central bank digital currency (CBDC) platform
  • D. Card-based payment network by number of users

Q27. Eurobank, the institution that partnered with NIPL for the UPI launch in Greece, is best described as which one of the following?

  • A. A major private full-service commercial bank of Greece
  • B. The central bank of Greece
  • C. The European Union's payments regulator
  • D. A European subsidiary of NPCI

Q28. With reference to the UPI launch in Greece, consider the following statements: 1. UPI in Greece was enabled through a partnership between NIPL and Eurobank. 2. The launch was witnessed by the Union Commerce & Industry Minister at Eurobank's headquarters in Athens. 3. Greece is the first country in the world where UPI was made live. 4. The Greece launch extended UPI's live presence to about ten countries. Which of the statements given above is/are NOT correct?

  1. UPI in Greece was enabled through a partnership between NIPL and Eurobank.
  2. The launch was witnessed by the Union Commerce & Industry Minister at Eurobank's headquarters in Athens.
  3. Greece is the first country in the world where UPI was made live.
  4. The Greece launch extended UPI's live presence to about ten countries.
  • A. 3 only
  • B. 1 and 3
  • C. 3 and 4
  • D. 2 only

Q29. With reference to UPI's international expansion, consider the following statements: 1. NIPL was incorporated in 2020 as a wholly-owned subsidiary of NPCI. 2. France was the first Western European country to accept UPI. 3. The UPI–PayNow linkage connects India's UPI with Singapore's instant payment system. 4. NIPL itself is licensed and supervised by the RBI as a scheduled foreign bank. Which of the statements given above is/are correctly identified?

  1. NIPL was incorporated in 2020 as a wholly-owned subsidiary of NPCI.
  2. France was the first Western European country to accept UPI.
  3. The UPI–PayNow linkage connects India's UPI with Singapore's instant payment system.
  4. NIPL itself is licensed and supervised by the RBI as a scheduled foreign bank.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q30. In the context of UPI's global expansion, NPCI International Payments Limited (NIPL) is best described as which one of the following?

  • A. A wholly-owned subsidiary of NPCI created to deploy UPI and RuPay outside India
  • B. A joint venture between the RBI and foreign central banks for cross-border settlement
  • C. A division of MeitY that licenses foreign fintech firms operating in India
  • D. An inter-governmental body under the G20 to standardise digital public infrastructure
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