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?
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✅ General Practice
Q1According 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?Q2The 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?Q3The 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?Q4Consider 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?Q5With reference to the Securities Transaction Tax (STT) changes proposed in the Union Budget 2026-27, which of the following statements is or are correct?Q6The 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?Q7Consider the following regarding the SME Growth Fund announced in Budget 2026-27:Q8Scenario: 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?Q9In 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?Q10The 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?Q11To 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?Q12With reference to the "New Income Tax Act" simplified capital gains structure announced in Budget 2026-27, consider the following statements:Q13Regarding 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?Q14Consider the following regarding the Goods and Services Tax (GST) Compensation Cess:Q15Identify the correct statement regarding the "Angel Tax" provisions in the Union Budget 2026-27.Q16Scenario: 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?Q17The Union Budget 2026-27 has increased the Capital Expenditure (Capex) outlay for infrastructure development to what amount?Q18To 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?Q19The 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?Q20Regarding the Defence Budget allocations for 2026-27, which of the following statements is or are INCORRECT?Q21With reference to the Railways Budget 2026-27, consider the following statements:Q22A 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?Q23Consider the following regarding the National Green Hydrogen Mission in Budget 2026-27:Q24Scenario: 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?Q25In 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?Q26The 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?Q27To 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?Q28With reference to the Digital Rupee (e-Rupee) announcements in Budget 2026-27, consider the following statements:Q29Regarding the "Green Deposits" framework for Banks and NBFCs mentioned in the Budget Strategy 2026-27, which of the following is or are INCORRECT?Q30A 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?Q31Consider the following regarding the Sovereign Gold Bond (SGB) Scheme in 2026-27:Q32Scenario: '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?Q33The 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?Q34The 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?Q35The 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?Q36Regarding the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) allocations in Budget 2026-27, which of the following statements is or are INCORRECT?Q37With reference to the Pradhan Mantri Awas Yojana (PMAY-Rural) targets mentioned in the Budget 2026-27, consider the following statements:Q38Scenario: 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?Q39Consider the following regarding the PM-SHRI (PM Schools for Rising India) scheme in Budget 2026-27:Q40Scenario: 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?Q41Ending 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?Q42The 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?Q43Under 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?Q44Regarding the "Prime Minister’s Internship Scheme" (Phase 2) funded in Budget 2026-27, which of the following statements is or are INCORRECT?Q45With reference to the Constitutional provisions for the Budget, consider the following statements:Q46Scenario: The Finance Minister mentions in the speech that the "Revenue Deficit" has been brought down toQ47Consider the following regarding the Disinvestment targets in recent budgets:Q48Scenario: 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?Q49The Union Budget 2026-27 emphasizes the completion of the "Agri-Stack" Digital Public Infrastructure. Consider the following statements regarding its three core foundational registries:Q50The Deep Ocean Mission received a specific allocation in Budget 2026-27. Which of the following pairs matches the mission component with its correct description?
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Frequently Asked Questions
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.
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