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Union Budget 2026-27 – Top 50 Most Expected Exam MCQs ⏳ Updated: Feb 2026 | 🎯 50 MCQs
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According to the Union Budget 2026-27 presented by the Finance Minister,
what is the estimated Fiscal Deficit target for the financial year 2026-27 as a percentage of GDP?
what is the estimated Fiscal Deficit target for the financial year 2026-27 as a percentage of GDP?
Explanation:
Correct: B
The Fiscal Deficit for the financial year 2026-27 (Budget Estimate) is estimated at 4.3% of GDP. The government has continued its path of fiscal consolidation. The Revised Estimate for the preceding year, 2025-26, was maintained at 4.4%. This marks a consistent decline from the post-pandemic highs, adhering to the glide path announced in previous Union Budget 2026-27 documents to bring the deficit below 4.5% by FY26.
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The Union Budget 2026-27 announced the implementation of a comprehensive new legislation to replace the existing Income Tax Act, 1961. On which date will the "New Income Tax Act" formally come into effect?
Explanation:
Correct: A
The New Income Tax Act is scheduled to come into effect from April 1, 2026. The Finance Minister announced that the new Act is designed to simplify tax compliance, reduce litigation, and modernize the direct tax code. This replaces the Income Tax Act, 1961, which has governed Indian taxation for over six decades. The Union Budget 2026-27 aims to make the tax structure more "assessee-friendly" with simplified language.
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The Budget 2026-27 proposed the establishment of "Rare Earth Corridors" to support strategic mineral availability.
Which of the following states was NOT explicitly mentioned as a beneficiary of this specific corridor scheme?
Which of the following states was NOT explicitly mentioned as a beneficiary of this specific corridor scheme?
Explanation:
Correct: D
Karnataka was NOT explicitly mentioned in the specific proposal for "Rare Earth Corridors" in this budget speech. The Finance Minister announced support for setting up dedicated Rare Earth Corridors in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh. The Union Budget 2026-27 focuses on these states due to their coastal reserves of heavy mineral sands like monazite.
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Consider the following statements regarding the Capital Expenditure (Capex) and Debt estimates in the Union Budget 2026-
27.
Which of the following is or are INCORRECT?
The Capital Expenditure outlay has been increased to Rupees 15.5 Lakh Crore.
The Central Government's Debt-to-GDP ratio is estimated to be 55.6% in BE 2026-
27. The Net Market Borrowings for 2026-27 are estimated at Rupees 11.7 Lakh Crore.
27.
Which of the following is or are INCORRECT?
The Capital Expenditure outlay has been increased to Rupees 15.5 Lakh Crore.
The Central Government's Debt-to-GDP ratio is estimated to be 55.6% in BE 2026-
27. The Net Market Borrowings for 2026-27 are estimated at Rupees 11.7 Lakh Crore.
Explanation:
Correct: A
Statement 1 is INCORRECT. The Capital Expenditure (Capex) outlay for 2026-27 is budgeted at Rupees 12.2 Lakh Crore, not 15.5 Lakh Crore. This represents a significant increase over the previous year's Revised Estimate. Statement 2 is Correct: The Debt-to-GDP ratio for the Centre is estimated at 55.6%. Statement 3 is Correct: The Net Market Borrowings are pegged at Rupees 11.7 Lakh Crore. These figures are central to the Union Budget 2026-27 analysis.
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With reference to the Securities Transaction Tax (STT) changes proposed in the Union Budget 2026-27,
which of the following statements is or are correct?
The STT on the sale of Futures has been increased from 0.02% to 0.05%.
The STT on the sale of Options has been increased from 0.1% to 0.15%.
The government stated the primary objective is to encourage long-term investment over speculative trading.
which of the following statements is or are correct?
The STT on the sale of Futures has been increased from 0.02% to 0.05%.
The STT on the sale of Options has been increased from 0.1% to 0.15%.
The government stated the primary objective is to encourage long-term investment over speculative trading.
Explanation:
Correct: D
All statements are CORRECT. The STT on the sale of Futures in securities was raised from 0.02% to 0.05%. The STT on the sale of Options in securities was raised from 0.1% to 0.15%. The Finance Minister explicitly stated that the intent of the Union Budget 2026-27 is to discourage speculative tendencies in the derivative markets (F&O segment) and shift focus to capital formation.
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The Budget 2026-27 allocated Rupees 20,000 Crore for a specific "Green Growth" intervention targeting high-emission industries. Which sectors are the primary targets of this Carbon Capture, Utilization, and Storage (CCUS) outlay?
Explanation:
Correct: B
The Rupees 20,000 Crore outlay for Carbon Capture, Utilization, and Storage (CCUS) specifically targets the Steel and Cement sectors. These are considered "hard-to-abate" sectors. This funding is a key component of the Capital Expenditure 2026 strategy to meet climate goals. The Union Budget 2026-27 aligns with India's "Net Zero by 2070" commitment and the need to remain competitive against global carbon border taxes.
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Consider the following regarding the SME Growth Fund announced in Budget 2026-27:
Assertion
Assertion
Explanation:
Correct: A
The Assertion is True: The Union Budget 2026-27 announced a Rupees 10,000 Crore SME Growth Fund. The Reason is True and Links: The explicit purpose of this fund is to provide equity or risk capital to Small and Medium Enterprises (SMEs). By providing equity, the government aims to solve the "dwarfism" or "missing middle" issue where firms remain small to avoid compliance or due to lack of growth capital.
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Scenario: A Central Public Sector Enterprise (CPSE) is procuring goods worth Rupees 50 Lakh from a registered Micro Enterprise. Under the new mandatory provisions announced in Budget 2026-27 to ensure timely payments, which platform must the CPSE utilize for the transaction settlement?
Explanation:
Correct: B
The Union Budget 2026-27 has mandated the use of TReDS for all procurements by CPSEs from MSMEs. To solve the issue of delayed payments, CPSEs are now legally required to settle transactions via the Trade Receivables Discounting System (TReDS) platform. This allows MSMEs to auction their invoices to financiers and receive immediate cash, improving liquidity.
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In the Union Budget 2026-27, the limit for Standard Deduction for salaried employees under the New Income Tax Regime has been increased to which amount?
Explanation:
Correct: C
The Standard Deduction has been raised to Rupees 1,00,000. To further incentivize the shift to the New Tax Regime Slabs, the Finance Minister proposed increasing the Standard Deduction from the previous Rupees 75,000. This change in the Union Budget 2026-27 implies that salaried individuals with an income up to Rupees 8.5 Lakh will effectively pay zero tax due to the Rebate under section 87A.
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The Budget 2026-27 announced an extension of the "Sunset Clause" for concessional corporate tax (15%) for new manufacturing units under Section 115BAB.
What is the new deadline for commencing manufacturing to avail this benefit?
What is the new deadline for commencing manufacturing to avail this benefit?
Explanation:
Correct: B
The deadline has been extended to March 31, 2028. Section 115BAB offers a concessional corporate tax rate of 15% to new domestic manufacturing companies. Originally set to expire in 2024, this extension in the Union Budget 2026-27 aims to further boost the "Make in India" initiative and attract global supply chains diversifying away from other regions.
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To promote domestic value addition in the electronics sector, the Budget 2026-27 proposed reducing Basic Customs Duty (BCD) on several mobile phone components.
Which of the following items did NOT receive a duty reduction in this specific proposal?
Which of the following items did NOT receive a duty reduction in this specific proposal?
Explanation:
Correct: D
Finished Imported Handsets did NOT receive a duty reduction; in fact, duties on finished goods are maintained to discourage imports. The Union Budget 2026-27 reduced BCD on components like PCBA of chargers, Connectors, and Camera Modules to lower production costs for domestic manufacturers, following the Phased Manufacturing Programme (PMP) logic.
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With reference to the "New Income Tax Act" simplified capital gains structure announced in Budget 2026-27, consider the following statements:
There are now only two holding periods for classifying assets as Long Term or Short Term: 12 months (Listed) and 24 months (Unlisted/Others).
The indexation benefit for Real Estate has been fully restored for properties bought before 2026.
Short Term Capital Gains (STCG) on listed equity are taxed at 20%.
There are now only two holding periods for classifying assets as Long Term or Short Term: 12 months (Listed) and 24 months (Unlisted/Others).
The indexation benefit for Real Estate has been fully restored for properties bought before 2026.
Short Term Capital Gains (STCG) on listed equity are taxed at 20%.
Explanation:
Correct: B
Statements 1 and 3 are Correct. The Union Budget 2026-27 Act has rationalized holding periods: Listed assets are Long Term after 12 months; all others (Unlisted/Real Estate) after 24 months. STCG on listed equity remains at 20%. Statement 2 is Incorrect: The budget did not restore indexation fully; it maintained the nominal rate reduction (LTCG at 12.5% without indexation). This is a critical aspect of the Fiscal Consolidation Path involving revenue rationalization.
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Regarding the rationalization of TDS (Tax Deducted at Source) norms in Budget 2026-27,
which of the following sectors saw a reduction in the TDS rate for e-commerce operators to improve working capital flow for small sellers?
which of the following sectors saw a reduction in the TDS rate for e-commerce operators to improve working capital flow for small sellers?
Explanation:
Correct: B
The TDS rate under Section 194-O for E-Commerce Operators was reduced from 1% to 0.1%. This applies to platforms like Amazon or Flipkart when they make payments to sellers. The 1% rate was locking up significant working capital. The Union Budget 2026-27 lowered this to 0.1% to create the audit trail without hurting liquidity, while TDS on gaming remains high.
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Consider the following regarding the Goods and Services Tax (GST) Compensation Cess:
Assertion
Assertion
Explanation:
Correct: C
Assertion is True: The GST Compensation Cess is indeed continuing beyond March 2026. Reason is False: The Cess is not being repurposed for Green Energy yet. The Union Budget 2026-27 clarifies it is continuing solely because the repayment of the interest and principal on the COVID-era borrowing is scheduled to go on until at least March 2027 or 2028.
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Identify the correct statement regarding the "Angel Tax" provisions in the Union Budget 2026-27.
Explanation:
Correct: C
The abolition remains in force. The controversial "Angel Tax" (Section 56(2)(vii b)) was abolished in the Budget 2025-26. The Union Budget 2026-27 reiterated that the government is committed to a "vibrant startup ecosystem" and confirmed that the tax remains abolished. No new "valuation" taxes were introduced this year.
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Scenario: Mr. Sharma, a senior citizen (aged 65), has a total income of Rupees 6,00,000 comprising only of pension and interest income. He did not file any form to opt out of the default tax regime. What is his tax liability for Assessment Year 2027-28?
Explanation:
Correct: C
His tax liability is Nil. The Union Budget 2026-27 makes the New Tax Regime the default. Calculation: Income is 6,00,000. Less Standard Deduction of 1,00,000 (New Limit) = Net Taxable 5,00,000. Tax on 5 Lakh is 5,000 (0-4L Nil, 4L-5L at 5%). Rebate under section 87A covers this 5,000. Thus, Final Tax Payable is Zero.
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The Union Budget 2026-27 has increased the Capital Expenditure (Capex) outlay for infrastructure development to what amount?
Explanation:
Correct: B
The Capital Expenditure target for 2026-27 is Rupees 12.2 Lakh Crore. This represents a significant increase from the previous year's Budget Estimate of 11.11 Lakh Crore. The Union Budget 2026-27 continues its strategy of "Capex-led growth" to crowd in private investment, with major funds going to Railways, Roads, and Defence.
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To reduce logistics costs and dependency on foreign shipping gear, the Budget 2026-27 announced a new "Container Manufacturing Scheme."
What is the total financial outlay allocated for this scheme over a 5-year period?
What is the total financial outlay allocated for this scheme over a 5-year period?
Explanation:
Correct: B
The outlay is Rupees 10,000 Crore over 5 years. The Union Budget 2026-27 aims to create a globally competitive ecosystem for producing shipping containers within India to counter Chinese dominance. This aligns with the Maritime India Vision 2030 and aims to support the export sector by ensuring container availability.
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The Finance Minister announced the development of seven new High-Speed Rail Corridors to function as "growth connectors."
Which of the following routes was NOT included in this specific announcement?
Which of the following routes was NOT included in this specific announcement?
Explanation:
Correct: C
Delhi – Ahmedabad was NOT in the list of the seven new corridors announced in the Union Budget 2026-27. The announced list focuses heavily on the "Southern Triangle" (Hyderabad, Bangalore, Chennai) and Eastern connectivity. The Delhi-Ahmedabad/Mumbai-Ahmedabad High-Speed Rail is an ongoing project, not a new announcement.
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Regarding the Defence Budget allocations for 2026-27,
which of the following statements is or are INCORRECT?
The total Defence Outlay has been set at Rupees 7.85 Lakh Crore.
The Capital Outlay for modernization (aircraft, ships) has decreased compared to the previous year's Revised Estimates.
Basic Customs Duty (BCD) has been exempted on components for aircraft manufacturing to boost the MRO sector.
which of the following statements is or are INCORRECT?
The total Defence Outlay has been set at Rupees 7.85 Lakh Crore.
The Capital Outlay for modernization (aircraft, ships) has decreased compared to the previous year's Revised Estimates.
Basic Customs Duty (BCD) has been exempted on components for aircraft manufacturing to boost the MRO sector.
Explanation:
Correct: B
Statement 2 is INCORRECT. The Capital Outlay for modernization has increased to Rupees 2.19 Lakh Crore in the Union Budget 2026-27, not decreased. Statement 1 is Correct: The total Defence Budget is Rupees 7.85 Lakh Crore. Statement 3 is Correct: BCD on specific aircraft components and raw materials has been exempted to promote the domestic MRO industry.
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With reference to the Railways Budget 2026-27, consider the following statements:
The Ministry of Railways received its highest-ever capital expenditure allocation of Rupees 2.93 Lakh Crore.
A new Dedicated Freight Corridor was announced connecting Dankuni (East) to Surat (West).
The operating ratio of Indian Railways has been targeted to improve to 95%.
The Ministry of Railways received its highest-ever capital expenditure allocation of Rupees 2.93 Lakh Crore.
A new Dedicated Freight Corridor was announced connecting Dankuni (East) to Surat (West).
The operating ratio of Indian Railways has been targeted to improve to 95%.
Explanation:
Correct: A
Statements 1 and 2 are CORRECT. The Union Budget 2026-27 allocated a record Rupees 2.93 Lakh Crore to Railways for safety (Kavach) and new tracks. It also announced the planning of a new East-West Dedicated Freight Corridor linking Dankuni to Surat. Statement 3 is not a headline announcement in this speech.
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A domestic airline company imports raw materials to manufacture aircraft parts for its in-house Maintenance, Repair, and Overhaul (MRO) unit. Following the Budget 2026-27, how will this import be treated by Customs?
Explanation:
Correct: B
The import will be exempt from Basic Customs Duty. The Union Budget 2026-27 announced a full waiver of duties on inputs for the manufacture of aircraft parts used in MRO activities. The objective is to make India a global hub for MRO services and reduce the outflow of foreign exchange for repairs.
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Consider the following regarding the National Green Hydrogen Mission in Budget 2026-27:
Assertion
Assertion
Explanation:
Correct: A
The Assertion is True: The Union Budget 2026-27 increased the specific annual disbursement for the mission to Rupees 600 Crore. The Reason is True: The funding increase is timed to support the payout of incentives for the SIGHT Programme (Electrolyzer Manufacturing) which is now reaching the execution stage.
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Scenario: Under the "Coastal Cargo Promotion Scheme" announced in Budget 2026-27, a logistics company plans to shift its cement transport from road to coastal shipping.
What is the government's stated long-term quantitative target for coastal shipping's share in the modal mix by 2047?
What is the government's stated long-term quantitative target for coastal shipping's share in the modal mix by 2047?
Explanation:
Correct: B
The target is to increase the share of inland and coastal shipping to 12% by 2047. The Union Budget 2026-27 emphasizes this shift under the Maritime India Vision. The scheme provides Viability Gap Funding (VGF) to shippers who shift cargo to waterways, which are significantly cheaper and greener than road transport.
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In a major boost to entrepreneurship, the Union Budget 2026-27 announced the enhancement of the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) for the 'Tarun Plus' category.
What is the new maximum loan limit?
What is the new maximum loan limit?
Explanation:
Correct: A
The limit has been formalized at Rupees 20 Lakh. The Union Budget 2026-27 confirmed the operationalization of the 'Tarun Plus' category, doubling the limit from the previous 10 Lakh. This is for borrowers who have successfully repaid previous loans, aiding small businesses in expansion.
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The Budget 2026-27 announced amendments to the Banking Regulation Act, 1949 regarding "Unclaimed Deposits." The "DEAF Scheme" mentioned in this context refers to which fund maintained by the RBI?
To develop GIFT City (IFSCA) as a "Global Finance Hub," the Budget 2026-27 delegated several powers to the IFSCA.
Which of the following powers was NOT delegated to IFSCA in this specific budget?
Which of the following powers was NOT delegated to IFSCA in this specific budget?
With reference to the Digital Rupee (e-Rupee) announcements in Budget 2026-27, consider the following statements:
Programmability features (for example, earmarked for specific agricultural inputs) will be introduced in the Retail CBDC.
Offline functionality will be tested to enable transactions in areas with poor internet connectivity.
The Wholesale CBDC will be opened up for non-bank financial institutions (NBFCs).
Programmability features (for example, earmarked for specific agricultural inputs) will be introduced in the Retail CBDC.
Offline functionality will be tested to enable transactions in areas with poor internet connectivity.
The Wholesale CBDC will be opened up for non-bank financial institutions (NBFCs).
Regarding the "Green Deposits" framework for Banks and NBFCs mentioned in the Budget Strategy 2026-27,
which of the following is or are INCORRECT?
Funds raised via Green Deposits can be used for any lending activity provided the bank pays a "Green Premium."
Deposits are denominated in Indian Rupees only.
Banks must furnish an independent Third-Party Verification/Assurance report on the utilization of these proceeds.
which of the following is or are INCORRECT?
Funds raised via Green Deposits can be used for any lending activity provided the bank pays a "Green Premium."
Deposits are denominated in Indian Rupees only.
Banks must furnish an independent Third-Party Verification/Assurance report on the utilization of these proceeds.
A foreign university wishes to set up a campus in India free from domestic UGC regulations to offer courses in Financial Management and Fintech. Under the Budget 2026-27 "International Education" provisions, where can they set up this campus to avail full regulatory exemption?
Consider the following regarding the Sovereign Gold Bond (SGB) Scheme in 2026-27:
Assertion
Assertion
Scenario: 'FinTech X', a payment aggregator, has been facilitating cross-border payments for freelance workers. The Budget 2026-27 introduces a new "Net-Settle" reporting norm. To whom must FinTech X now report these high-value cross-border transactions directly to prevent money laundering?
The Union Budget 2026-27 reaffirmed the government's commitment to women-led development by setting the final target for the "Lakhpati Didi" scheme.
What is the enhanced target for the number of women to be empowered under this initiative?
What is the enhanced target for the number of women to be empowered under this initiative?
The Anusandhan National Research Foundation (ANRF) was operationalized to boost private sector research. The Budget 2026-27 highlighted the "RDI Fund" under ANRF.
What is the total corpus of this specific fund designed to provide long-term financing?
What is the total corpus of this specific fund designed to provide long-term financing?
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) was expanded to cover all senior citizens aged 70 years and above.
Which of the following statements regarding this specific expansion is NOT correct?
Which of the following statements regarding this specific expansion is NOT correct?
Regarding the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) allocations in Budget 2026-27,
which of the following statements is or are INCORRECT?
The scheme targets the 75 Particularly Vulnerable Tribal Groups (PVTGs).
The total outlay for the mission is Rupees 50,000 Crore.
It focuses on 11 critical interventions including housing, connectivity, and mobile medical units.
which of the following statements is or are INCORRECT?
The scheme targets the 75 Particularly Vulnerable Tribal Groups (PVTGs).
The total outlay for the mission is Rupees 50,000 Crore.
It focuses on 11 critical interventions including housing, connectivity, and mobile medical units.
With reference to the Pradhan Mantri Awas Yojana (PMAY-Rural) targets mentioned in the Budget 2026-27, consider the following statements:
The government has set a target to construct an additional 2 Crore houses over the next 5 years.
74% of the houses sanctioned under PMAY-G are owned solely or jointly by women.
The unit assistance for a house in plain areas is Rupees 2.50 Lakh.
The government has set a target to construct an additional 2 Crore houses over the next 5 years.
74% of the houses sanctioned under PMAY-G are owned solely or jointly by women.
The unit assistance for a house in plain areas is Rupees 2.50 Lakh.
Scenario: Mr. Das (aged 72) and Mrs. Das (aged 68) belong to a family already covered under the standard Ayushman Bharat PM-JAY scheme. Following the 2026 guidelines, how is the health cover structured for them?
Consider the following regarding the PM-SHRI (PM Schools for Rising India) scheme in Budget 2026-27:
Assertion
Assertion
Scenario: A rural artisan specializing in traditional carpentry wants to upgrade his tools and access collateral-free credit. He applies for the "PM Vishwakarma" scheme. Under the 2026 provisions,
which of the following benefits is he eligible for immediately after basic training?
which of the following benefits is he eligible for immediately after basic training?
Ending the long delay, the Union Budget 2026-27 allocated Rupees 6,000 Crore for the "Census 2027". According to the announcement,
what is the Reference Date for the population count in most of the country, excluding snow-bound areas?
what is the Reference Date for the population count in most of the country, excluding snow-bound areas?
The Budget 2026-27 is the first Union Budget to incorporate the recommendations of the 16th Finance Commission. Who is the Chairman of this Commission, whose award period covers the years 2026 to 2031?
Under the "Purvodaya 2.0" initiative for the Eastern Region, the Finance Minister proposed a new "East Coast Industrial Corridor." The specific industrial node mentioned for this corridor is located in which city?
Regarding the "Prime Minister’s Internship Scheme" (Phase 2) funded in Budget 2026-27,
which of the following statements is or are INCORRECT?
The scheme is open to youth aged 21 to 24 years.
Interns receive a monthly allowance of Rupees 5,000, fully paid by the participating company.
Candidates with qualifications like CA, MBA, or Master's degrees are eligible to apply.
which of the following statements is or are INCORRECT?
The scheme is open to youth aged 21 to 24 years.
Interns receive a monthly allowance of Rupees 5,000, fully paid by the participating company.
Candidates with qualifications like CA, MBA, or Master's degrees are eligible to apply.
With reference to the Constitutional provisions for the Budget, consider the following statements:
The term "Budget" is not mentioned in the Constitution of India; it is referred to as the "Annual Financial Statement."
The Budget must be presented under Article 112 of the Constitution.
No demand for a grant can be made except on the recommendation of the President.
The term "Budget" is not mentioned in the Constitution of India; it is referred to as the "Annual Financial Statement."
The Budget must be presented under Article 112 of the Constitution.
No demand for a grant can be made except on the recommendation of the President.
Scenario: The Finance Minister mentions in the speech that the "Revenue Deficit" has been brought down to 1.8%. What does a Revenue Deficit of 1.8% imply for the government's finances?
Consider the following regarding the Disinvestment targets in recent budgets:
Assertion
Assertion
Scenario: A start-up in the Space Sector (SpaceTech) is looking for funding. The Budget 2026-27 mentions a specific Venture Capital Fund of Rupees 1,000 Crore. Under whose aegis is this fund operationalized?
The Union Budget 2026-27 emphasizes the completion of the "Agri-Stack" Digital Public Infrastructure. Consider the following statements regarding its three core foundational registries:
The Farmer Registry assigns a unique "Farmer ID" linked dynamically to land records.
The Crop Sown Registry utilizes mobile-based Digital Crop Surveys to record crop data in real-time.
The Geo-Referenced Village Maps registry links geographic data with physical land records.
The Farmer Registry assigns a unique "Farmer ID" linked dynamically to land records.
The Crop Sown Registry utilizes mobile-based Digital Crop Surveys to record crop data in real-time.
The Geo-Referenced Village Maps registry links geographic data with physical land records.
The Deep Ocean Mission received a specific allocation in Budget 2026-
27.
Which of the following pairs matches the mission component with its correct description?
27.
Which of the following pairs matches the mission component with its correct description?
Completed!
Final Score: 0/50
Union Budget 2026-27 is the cornerstone topic for aspirants aiming for government recruitment this year. In this guide, we cover the 50 most important questions derived from the Finance Minister’s speech. This critical mock test is specifically designed for UPSC Civil Services, SSC CGL, Judicial Services, RBI Grade B, and IBPS PO to help you master the new data points, tax amendments, and scheme allocations quickly.
Why This Union Budget 2026-27 Test Matters?
Exam Weightage: For UPSC aspirants, this Union Budget 2026-27 MCQ test covers crucial dynamic portions of GS Paper 3 (Economic Development). For Banking and SSC candidates, 4-5 direct questions on allocations, new schemes and tax slabs are expected in the General Awareness section.
Difficulty: Moderate to Hard (Data & Concept-based).
Practice Union Budget 2026-27 (Live Mock Test)
Quick Revision: Key Facts for Union Budget 2026-27
Fiscal Deficit: Target set at 4.3% of GDP for FY 2026-27.
Capex Outlay: Record allocation of Rupees 12.2 Lakh Crore.
New Tax Act: Comes into effect from April 1, 2026.
Standard Deduction: Raised to Rupees 1 Lakh for salaried employees.
Railways: Highest ever capex of Rupees 2.93 Lakh Crore.
Mudra Loan: ‘Tarun Plus’ limit increased to Rupees 20 Lakh.
Green Hydrogen: Allocation doubled to Rupees 600 Crore.
Defence: Capital outlay increased to Rupees 2.19 Lakh Crore.
Census: Reference date set for March 1, 2027.
Frequently Asked Questions: Union Budget 2026-27
Why is Union Budget 2026-27 critical for UPSC, RBI, IBPS, SBI and other exams?
It is a high-scoring area in GS Paper 3. Mastering Union Budget 2026-27 ensures better performance in the economy section and essay paper. Also, for all bank exams 2-3 MCQs are asked from budget.
Does this test cover the full syllabus?
Yes, these Union Budget 2026-27 questions cover the most repeated concepts found in previous years’ papers including tax slabs and schemes.
What is the new income tax slab for 2026-27?
The new regime is the default. Income up to 4 Lakh is Nil; 4-8 Lakh is 5%. Standard deduction is now Rs 1 Lakh.
Is the Old Tax Regime still available?
Yes, but you must explicitly opt-out of the New Regime to use the Old Regime. The New Regime is the default in Union Budget 2026-27.
What are the key infrastructure announcements?
Key highlights include 7 new High-Speed Rail Corridors, East Coast Industrial Corridor (Durgapur), and 12.2 Lakh Crore Capex.
Read Also: Priority Sector Lending – Top 37 Vital Bank Promotion MCQs