Budget Questions with Answers 2025-26 for Banking Exams: Attempt Free Quiz Here

Correct Answer:  (b) ₹1 lakh crore

Explanation:  ​The correct answer is (b) ₹1 lakh crore. In the Union Budget for the fiscal year 2025-26, Finance Minister Nirmala Sitharaman announced the establishment of an Urban Challenge Fund with a total corpus of ₹1 lakh crore. This fund aims to implement proposals for ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and improvements in ‘Water and Sanitation.’ The fund is designed to finance up to 25% of the cost of bankable projects, with the stipulation that at least 50% of the project cost is funded through bonds, bank loans, and public-private partnerships (PPPs). For the fiscal year 2025-26, an initial allocation of ₹10,000 crore has been proposed to kickstart the fund’s operations. This initiative underscores the government’s commitment to urban development and aims to encourage cities to leverage market-based financing mechanisms for their growth and redevelopment projects.​

Correct Answer:  (c) ₹5,48,649 crore

Explanation:  ​The correct answer is (c) ₹5,48,649 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹5,48,649 crore to the transport infrastructure sector. This allocation encompasses various modes of transportation, including roads, railways, and urban transit systems. Specifically, the Ministry of Road Transport and Highways received ₹2,87,333.16 crore, marking a slight increase from the previous year’s allocation. The National Highways Authority of India (NHAI) was allocated ₹1,87,803 crore, up from ₹1,69,371 crore in the previous fiscal year. Additionally, the Ministry of Railways received ₹2,55,445.18 crore. These investments underscore the government’s commitment to enhancing the nation’s transport infrastructure, aiming to improve connectivity, reduce travel time, and support economic growth.

Correct Answer:  (c) 20%

Explanation:  ​The correct answer is (c) 20%. In the Union Budget for the fiscal year 2025-26, interest payments are projected to account for approximately 20% of the central government’s total expenditure. This indicates that out of every rupee spent by the government, about 20 paise are allocated to servicing existing debt. Such a significant portion of expenditure dedicated to interest payments highlights the substantial debt obligations of the government and underscores the importance of prudent fiscal management. High interest payments can constrain the government’s ability to allocate funds to developmental and welfare programs, emphasizing the need for strategies aimed at reducing debt levels and associated interest burdens.

Correct Answer:  (c) ₹86,000 crore

Explanation:  ​The correct answer is (c) ₹86,000 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹86,000 crore to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. This allocation remains unchanged from the previous year’s revised estimate, reflecting the government’s continued commitment to providing employment opportunities in rural areas. MGNREGA aims to enhance livelihood security by guaranteeing 100 days of wage employment per financial year to rural households whose adult members volunteer to do unskilled manual work. The consistent allocation underscores the scheme’s significance in supporting rural employment and economic stability.

Correct Answer:  (c) 22%

Explanation:  ​The correct answer is (c) 22%. In the Union Budget for the fiscal year 2025-26, the State Share of Taxes and Duties is allocated 22% of the central government’s total expenditure. This means that out of every rupee spent by the central government, 22 paise are transferred to state governments as their share of tax revenues. This allocation reflects the central government’s commitment to fiscal federalism, ensuring that states receive a portion of centrally collected taxes to fund their expenditures and development initiatives. Such transfers are vital for states to finance various schemes and projects, thereby promoting balanced regional development across the country.

Correct Answer:  (b) ₹67,000 crore

Explanation:  ​The correct answer is (b) ₹67,000 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹67,000 crore to the Jal Jeevan Mission (JJM). This mission, launched in August 2019, aims to provide functional household tap connections to all rural households, ensuring access to potable water. The allocation represents an increase from the revised estimate of ₹22,694 crore for 2024-25, indicating the government’s commitment to achieving 100% coverage in the next three years. Additionally, Finance Minister Nirmala Sitharaman announced the extension of the mission until 2028, focusing on the quality of infrastructure and the operation and maintenance of rural piped water supply schemes through “Jan Bhagidari” (public participation). Separate Memorandums of Understanding (MoUs) will be signed with states and Union Territories to ensure sustainable and citizen-centric water service delivery.

Correct Answer:  (b) 6%

Explanation:  ​The correct answer is (b) 6%. In the Union Budget for the fiscal year 2025-26, major subsidies—including those for food, fertilizer, and petroleum—are allocated approximately 6% of the total government expenditure. This allocation reflects the government’s commitment to supporting essential sectors and ensuring affordability of critical commodities for the population. Notably, this marks a reduction in the subsidy bill compared to previous years, aligning with efforts to streamline public spending and enhance fiscal prudence. The decrease in subsidy allocation is indicative of the government’s strategy to balance welfare support with sustainable economic management.

Correct Answer:  (b) ₹38,613.32 crore

Explanation:  ​The correct answer is (b) ₹38,613.32 crore. In the Union Budget for the fiscal year 2025-26, the Indian government allocated ₹38,613.32 crore to the Ministry of Science & Technology. This allocation represents approximately 0.762% of the total government expenditure for the year. The increased funding underscores the government’s commitment to advancing scientific research and innovation. Notably, a significant portion of this budget is directed towards initiatives such as the “Research, Development & Innovation” program, which received an allocation of ₹20,000 crore. This initiative aims to bolster private sector-driven research and development, reflecting a strategic focus on fostering innovation and technological advancement in the country.

Correct Answer:  (c) ₹16,44,936 crore

Explanation:  The correct answer is (c) ₹16,44,936 crore, representing the total Capital Receipts (including borrowings) in the 2025-26 Union Budget.

Key Details:

1. Composition:
   • Borrowings (net): ₹14,13,649 crore (85.9% of total)
   • Recovery of Loans: ₹18,500 crore
   • Other Liabilities: ₹2,12,787 crore
2. Context:
   • Funds major capital expenditures (infrastructure, defense modernization)
   • Constitutes 32.5% of total budget resources
   • Fiscal deficit of 4.5% of GDP necessitates this borrowing
3. Trend Analysis:
   • 8.3% increase from 2024-25 (₹15,18,596 crore)
   • Reflects continued infrastructure push despite fiscal consolidation

The total capital receipts, including borrowings, are projected at ₹16,42,452 crore. This figure encompasses both debt receipts (borrowings) and non-debt capital receipts, such as recoveries of loans and disinvestment proceeds. Capital receipts are crucial for financing the government’s capital expenditures and managing the fiscal deficit. The government’s strategy involves balancing developmental needs with fiscal prudence, ensuring that investments in infrastructure and other capital-intensive projects are adequately funded while maintaining a sustainable debt profile.

Correct Answer:  (b) ₹74,626 crore

Explanation:  ​The correct answer is (b) ₹74,626 crore. In the Union Budget for the fiscal year 2025-26, the combined allocation for the Pradhan Mantri Awas Yojana (PMAY), encompassing both its rural (Gramin) and urban components, is ₹74,626 crore. This represents a significant increase of 64% over the revised estimate for 2024-25. The enhanced allocation underscores the government’s commitment to accelerating the provision of affordable housing across the country, aiming to achieve the objective of “Housing for All.” The substantial increase in funding is expected to expedite the construction and completion of houses under the scheme, thereby improving living conditions for beneficiaries and contributing to the overall development of both rural and urban areas.