Q170. Which initiative announced in Union Budget 2026–27 aimed to transform the sports ecosystem over the next decade?
[RRB Group D, 18 August 2026, Shift 1]
(A) Sports Talent Nurturing
(B) Khelo India Mission
(C) Youth Skilling Campaign
(D) National Sports Excellence Programme
Answer: (B) Khelo India Mission
Explanation: The Khelo India Mission was presented as a long-term approach to developing India’s sports ecosystem. Budget-funded initiatives can support infrastructure, talent identification and training. The question concerns the named budget announcement rather than the accounting classification of expenditure.
Q169. Which small-business support measure with an outlay of ₹10,000 crore was announced in Union Budget 2026?
[RRB Group D, 18 August 2026, Shift 1]
(A) Direct-tax slab revision for salaried employees
(B) Export incentives restricted to large corporations
(C) Higher GST on service providers
(D) SME Growth Fund
Answer: (D) SME Growth Fund
Explanation: The SME Growth Fund announcement targeted support for smaller businesses through a dedicated ₹10,000-crore facility. Such budget interventions seek to address funding constraints for enterprises. Its named instrument, rather than changes to employee tax slabs, is the tested fact.
Q168. Which constitutional Article establishes the Finance Commission?
[DSSSB MTS, 1 August 2026, Shift 1]
(A) Article 280
(B) Article 19
(C) Article 324
(D) Article 51A
Answer: (A) Article 280
Explanation: Article 280 authorises the President to constitute a Finance Commission. It recommends sharing of Union tax proceeds and principles for grants-in-aid to States. Article 324 concerns the Election Commission, while Articles 19 and 51A address rights and duties.
Q167. Which policy tool directly influences aggregate demand through government spending?
[SSC Selection Post, Higher Secondary, 19 September 2026, Shift 2]
(A) Monetary policy
(B) Fiscal policy
(C) Industrial policy
(D) Trade policy
Answer: (B) Fiscal policy
Explanation: Fiscal policy changes public spending and taxation to affect total demand, output and employment. Government purchases directly create demand for goods and services. Monetary policy, by contrast, chiefly alters borrowing conditions and liquidity through central-bank instruments such as interest rates.
Q166. What is fiscal policy primarily related to?
[DSSSB Court Attendant, 28 June 2026, Shift 2]
(A) Determination of foreign exchange rates
(B) Regulation of stock markets
(C) Control of money supply
(D) Management of government expenditure and taxation
Answer: (D) Management of government expenditure and taxation
Explanation: Fiscal policy involves decisions on how much government spends, the taxes it collects and the borrowing needed to meet expenditure. Its effect is transmitted through public demand, household disposable income and investment incentives rather than direct central-bank control of money supply.
Q165. Which fiscal-policy statements are correct?
I. It is formulated by the Central Government.
II. It deals with government revenue and expenditure.
III. It is implemented by the RBI.
[UPHESC Assistant Professor (Commerce), 19 April 2026, Shift 2]
(A) I and III only
(B) I and II only
(C) II and III only
(D) I, II and III
Answer: (B) I and II only
Explanation: The elected government frames fiscal choices through the budget and associated legislation. These cover taxes, public expenditure and borrowing. The Reserve Bank manages monetary-policy operations rather than implementing the central government’s fiscal policy, so the third statement is incorrect.
Q164. Who appoints the Chairperson of the Finance Commission of India?
[MP Police Sub-Inspector, 18 January 2026, Shift 1]
(A) Vice-President
(B) Prime Minister
(C) Council of Ministers
(D) President of India
Answer: (D) President of India
Explanation: Article 280 empowers the President to constitute the Finance Commission, including its chairperson and other members. The Commission advises on divisible taxes and grants between the Union and States. Its recommendations inform fiscal transfers but are not an independent power to levy tax.
Q163. What total expenditure was estimated in the Union Budget 2025–26?
[RRB NTPC Undergraduate CBT-I, 19 June 2026, Shift 2]
(A) ₹40 lakh crore
(B) ₹55 lakh crore
(C) ₹45 lakh crore
(D) ₹50.65 lakh crore
Answer: (D) ₹50.65 lakh crore
Explanation: The Union Budget 2025–26 put total estimated expenditure at approximately ₹50.65 lakh crore. This comprises both revenue and capital spending, including substantial infrastructure allocations. Budget estimates are prospective allocations, so they can differ from revised estimates and eventual audited expenditure.
Q162. Under which framework were State governments urged in December 2025 to keep their borrowing within prescribed fiscal limits?
[RRB NTPC Graduate CBT-I, 16 March 2026, Shift 1]
(A) FRBM framework
(B) Monetary Policy framework
(C) NITI Aayog framework
(D) GST framework
Answer: (A) FRBM framework
Explanation: Fiscal Responsibility and Budget Management rules and corresponding State legislation support prudent deficit and borrowing policies. States receive fiscal-deficit and borrowing guidance through constitutional and financial arrangements. Monetary policy and GST serve different purposes and are not debt-limit frameworks.
Q161. Which of these statements about capital receipts are true?
I. They create a liability or reduce government assets.
II. Borrowing and disinvestment are capital receipts.
III. Interest received on government loans creates a government liability.
[UPSC CSE Prelims 2025]
(A) I and II only
(B) II and III only
(C) I and III only
(D) I, II and III
Answer: (A) I and II only
Explanation: Borrowing increases liabilities, while selling equity in public enterprises reduces financial assets; both are capital receipts. Interest earned on advances represents non-tax revenue and does not create a repayment obligation. Consequently, statements I and II alone hold.
