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

Correct Answer:  (a) ₹13,416.20 crore

Explanation:  ​The correct answer is (a) ₹13,416.20 crore. In the Union Budget for the fiscal year 2025-26, the Department of Space has been allocated ₹13,416.20 crore. This allocation marks an increase from the revised estimate of ₹11,725.75 crore in the previous fiscal year, reflecting the government’s commitment to advancing India’s space capabilities. The budget includes ₹7,312.57 crore for revenue expenditure and ₹6,103.63 crore for capital outlays. Significant portions are earmarked for various Indian Space Research Organisation (ISRO) centers and projects, including the Vikram Sarabhai Space Centre, UR Rao Satellite Centre, and the Human Spaceflight Centre. This increased funding aims to support ongoing and upcoming space missions, enhance research and development, and bolster India’s position in the global space sector.

Correct Answer:  (a) ₹11,53,834 crore

Explanation:  ​The correct answer is (a) ₹11,53,834 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has projected net market borrowings of ₹11.54 lakh crore (₹11,53,834 crore) to finance its fiscal deficit, which is estimated at 4.4% of GDP. Gross market borrowings are estimated at ₹14.82 lakh crore, with the net figure accounting for repayments of existing debt. The balance of the fiscal deficit is expected to be financed through small savings and other sources. These borrowing figures reflect the government’s strategy to fund its expenditure while aiming to maintain fiscal prudence and support economic growth.

Correct Answer:  (b) 17%

Explanation:  In the Union Budget 2025–26, Corporation Tax is projected to contribute approximately 17% of the government’s total revenue. Corporation Tax is levied on the profits of domestic and foreign companies operating in India and represents a significant portion of the central government’s Gross Tax Revenue. For the fiscal year 2025–26, the estimated collection from Corporation Tax stands at ₹10,82,000 crore out of a Gross Tax Revenue of ₹42,70,233 crore.

This proportion reflects the continued importance of the corporate sector to India’s economy and public finance. Despite global economic uncertainties, robust performance in key industries and improved compliance measures have helped maintain strong corporate tax collections. The government uses these revenues to fund vital sectors such as infrastructure, healthcare, education, and social welfare. Maintaining a stable and predictable corporate tax regime is crucial for ensuring investor confidence and long-term economic growth. The 17% share also highlights the need for diversified revenue sources to support sustainable development while ensuring that the tax burden is equitably distributed.

Correct Answer:  (b) ₹98,311 crore

Explanation:  ​The correct answer is (b) ₹98,311 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹98,311 crore to the healthcare sector, marking a 9.8% increase from the previous year’s allocation of ₹89,287 crore. This enhanced funding reflects the government’s commitment to strengthening the healthcare infrastructure and improving medical services across the country.

Key allocations within this budget include ₹9,406 crore for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), aimed at providing health insurance coverage to economically vulnerable populations. Additionally, ₹4,200 crore has been earmarked for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM), focusing on bolstering health infrastructure. The National Health Mission (NHM) received ₹37,226.92 crore to support various health initiatives. Furthermore, the budget outlines plans to add 10,000 medical seats in the coming year, with a target of 75,000 seats over the next five years, addressing the need for more healthcare professionals. These measures collectively aim to enhance healthcare accessibility and quality for all citizens.

Correct Answer:  (b) ₹25,01,284 crore

Explanation:  The correct answer is (b) ₹25,01,284 crore. In the Union Budget for the fiscal year 2025-26, the Indian government has allocated a total of ₹25,01,284 crore for transfers to States and Union Territories (UTs). This allocation includes:​

• State Devolution: ₹14,22,444 crore​
• Finance Commission Grants: ₹1,32,767 crore​
• Centrally Sponsored Schemes: ₹5,41,850 crore​
• Other Grants & Loans: ₹3,74,725 crore​

This substantial allocation underscores the central government’s commitment to cooperative federalism, ensuring that states and UTs have the necessary financial resources to implement development programs, enhance infrastructure, and provide essential services to their populations. The funds are intended to support various sectors, including education, healthcare, agriculture, and rural development, thereby promoting balanced regional growth and reducing disparities across the country.

Correct Answer:  (d) 0.8%

Explanation:  In the Union Budget for the fiscal year 2025-26, India’s Primary Deficit is projected at 0.8% of Gross Domestic Product (GDP). The Primary Deficit represents the Fiscal Deficit minus interest payments on previous borrowings, effectively indicating the extent to which the government is borrowing to finance its current expenditures, excluding interest obligations. A lower Primary Deficit suggests that a smaller portion of government borrowing is allocated to non-interest expenditures, reflecting improved fiscal discipline. This reduction aligns with the government’s commitment to fiscal consolidation, aiming to decrease overall debt levels and promote sustainable economic growth. The targeted decrease in Primary Deficit from previous years underscores efforts to enhance revenue generation and manage expenditures more effectively.

Correct Answer:  (b) ₹21,960 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹21,960 crore to the Saksham Anganwadi and POSHAN 2.0 programs, which aim to combat malnutrition and enhance early childhood care. This allocation marks an increase from the revised estimate of ₹20,070.90 crore in the previous fiscal year.

The POSHAN 2.0 initiative focuses on providing nutritional support to over 8 crore children, 1 crore pregnant and lactating women, and 20 lakh adolescent girls, particularly in aspirational districts and the northeastern region of India. The program has been restructured into three primary components:​

• Nutrition support for children and adolescent girls
• Early childhood care and education
• Anganwadi infrastructure development

This increased funding underscores the government’s commitment to addressing malnutrition and promoting the well-being of vulnerable populations across the country.

Correct Answer:  (a) ₹2,33,210.68 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Ministry of Home Affairs (MHA) has been allocated ₹2,33,210.68 crore. This represents an increase from the previous year’s allocation of ₹2,19,643.31 crore. ​

• A significant portion of this budget, ₹1,60,391.06 crore, is designated for central police forces such as the Central Reserve Police Force (CRPF), Border Security Force (BSF), and Central Industrial Security Force (CISF), which are responsible for internal security, border protection, and safeguarding critical infrastructure. ​
• Additionally, the budget includes allocations for Union Territories, with ₹41,000.07 crore earmarked for Jammu and Kashmir, ₹6,212.06 crore for Andaman and Nicobar Islands, and ₹6,187.48 crore for Chandigarh. These funds aim to enhance security, infrastructure, and development in these regions.​

Correct Answer:  (c) 9%

Explanation:  In the Union Budget for the fiscal year 2025-26, Non-Tax Revenue accounts for approximately 9% of the government’s total revenue. This category includes income from sources other than taxes, such as dividends from public sector enterprises, interest receipts, and fees for services provided by the government. According to the Budget at a Glance document, the total revenue receipts are estimated at ₹34.20 lakh crore, with non-tax revenue contributing ₹5.83 lakh crore. This proportion underscores the significance of non-tax revenue in diversifying the government’s income streams and reducing reliance on tax collections. Enhancing non-tax revenue is crucial for fiscal sustainability, as it provides additional funds for public expenditure without increasing the tax burden on citizens. Efforts to boost non-tax revenue may include improving the profitability of public sector enterprises, optimizing user charges for public services, and monetizing government assets.

Correct Answer:  (c) ₹7,500 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹7,500 crore to the PM Schools for Rising India (PM SHRI) initiative. This represents an increase from the previous year’s allocation of ₹4,500 crore. ​The PM SHRI scheme aims to develop over 15,000 existing schools across the country into exemplar institutions that showcase the implementation of the National Education Policy (NEP) 2020. These schools will focus on delivering quality education through innovative pedagogy, upgraded infrastructure, and the integration of technology. They are also expected to provide mentorship to other schools in their vicinity, thereby uplifting the overall standard of education. ​ This increased allocation underscores the government’s commitment to enhancing the quality of school education and ensuring that students receive holistic and well-rounded learning experiences.