Union Budget 2026-27 MCQs
MCQs based on the Union Budget 2026-27 (presented by Finance Minister Nirmala Sitharaman on February 1, 2026). These cover key highlights, allocations, fiscal parameters, schemes, and reforms for quick revision.
1. What is the estimated fiscal deficit as a percentage of GDP for FY 2026-27 (BE) as per the Union Budget 2026-27?
A) 4.0%
B) 4.3%
C) 4.4%
D) 4.8%
Correct Answer: B) 4.3%
Explanation: The Budget targets a fiscal deficit of 4.3% of GDP in BE 2026-27, down from 4.4% in RE 2025-26, continuing the path of fiscal consolidation while aiming for a debt-to-GDP ratio of around 55.6% in FY27 and 50% ±1% by 2030.
2. What is the proposed capital expenditure (capex) allocation for FY 2026-27?
A) ₹11.2 lakh crore
B) ₹12.2 lakh crore
C) ₹13.0 lakh crore
D) ₹10.5 lakh crore
Correct Answer: B) ₹12.2 lakh crore
Explanation: Public capex has been increased to ₹12.2 lakh crore (about 3.1% of GDP) from ₹11.2 lakh crore in the previous year to sustain infrastructure-led growth and economic momentum.
3. Which new scheme was announced with an outlay of ₹10,000 crore over 5 years to position India as a global biopharma hub?
A) India Semiconductor Mission 2.0
B) Biopharma SHAKTI
C) Rare Earth Corridors
D) PM Surya Ghar Muft Bijli Yojana
Correct Answer: B) Biopharma SHAKTI
Explanation: Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) is a key initiative under manufacturing in strategic sectors to boost biopharma production and reduce import dependence.
4. What is the increased outlay for the Electronics Components Manufacturing Scheme in Budget 2026-27?
A) ₹20,000 crore
B) ₹30,000 crore
C) ₹40,000 crore
D) ₹50,000 crore
Correct Answer: C) ₹40,000 crore
Explanation: The scheme’s outlay was raised to ₹40,000 crore to strengthen domestic electronics manufacturing and support the semiconductor and component ecosystem.
5. The Budget 2026-27 is described as a ________-driven Budget, focusing on youth empowerment and inclusive growth.
A) Infrastructure
B) Yuva Shakti
C) Green Energy
D) MSME
Correct Answer: B) Yuva Shakti
Explanation: Presented as a “Yuva Shakti-driven Budget,” it emphasizes converting India’s demographic dividend into productive capacity through skilling, employment, and enterprise creation while focusing on the poor and disadvantaged.
6. What is the allocation provided to States for FY 2026-27 as Finance Commission Grants (as recommended by the 16th Finance Commission)?
A) ₹1.0 lakh crore
B) ₹1.2 lakh crore
C) ₹1.4 lakh crore
D) ₹1.6 lakh crore
Correct Answer: C) ₹1.4 lakh crore
Explanation: ₹1.4 lakh crore has been provisioned for States, including grants for Rural and Urban Local Bodies and Disaster Management, retaining the vertical devolution share at 41%.
7. Which of the following is NOT one of the three “Kartavyas” inspiring the Union Budget 2026-27?
A) Accelerate and sustain economic growth
B) Fulfil aspirations of people and build their capacity
C) Ensure every family has access to resources and opportunities
D) Achieve zero fiscal deficit immediately
Correct Answer: D) Achieve zero fiscal deficit immediately
Explanation: The Budget is guided by three Kartavyas: (1) Accelerate/sustain growth, (2) Fulfil people’s aspirations and build capacity, and (3) Ensure inclusive access (Sabka Saath, Sabka Vikas). Fiscal prudence is maintained but not zero deficit.
8. Under the renewable energy focus, what major allocation continues under PM Surya Ghar: Muft Bijli Yojana in Budget 2026-27?
A) ₹100 billion
B) ₹150 billion
C) ₹220 billion
D) ₹300 billion
Correct Answer: C) ₹220 billion
Explanation: Out of the increased renewable energy allocation (₹329.147 billion, up 30%), ₹220 billion is directed to the flagship PM Surya Ghar scheme for residential rooftop solar deployment.
9. What major tax reform takes effect from April 2026 as announced in the Budget?
A) New income tax slabs
B) New Income Tax Act, 2025
C) Abolition of GST
D) Increase in corporate tax rate
Correct Answer: B) New Income Tax Act, 2025
Explanation: The New Income Tax Act, 2025 replaces the 1961 Act from April 2026 to modernize and simplify tax laws, though no changes were made to income tax slabs/rates in this Budget.
10. Which sector received a significant boost with dedicated chemical parks, container manufacturing scheme, and rare earth corridors?
A) Agriculture
B) Defence
C) Domestic Manufacturing (strategic/frontier sectors)
D) Tourism
Correct Answer: C) Domestic Manufacturing (strategic/frontier sectors)
Explanation: The Budget focuses on scaling manufacturing in 7 strategic/frontier areas, including 3 dedicated chemical parks, a container manufacturing scheme (>₹10,000 crore over 5 years), and rare earth corridors in states like Odisha and Kerala to reduce import dependencies and build self-reliance.