Union Budget 2025 MCQ for Banking, SSC and Railway Exams: Attempt Free Quiz Here

Correct Answer:  (a) ₹1,37,756.55 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government allocated ₹1,37,756.55 crore to the Ministry of Agriculture & Farmers Welfare. This allocation represents a 2.5% decrease compared to the revised estimate of ₹1,41,352 crore for the previous fiscal year. ​ The majority of this budget is directed towards key schemes aimed at supporting farmers and enhancing agricultural productivity. Notably, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, which provides direct income support to farmers, has been allocated ₹63,500 crore, maintaining the same level as the previous year. Additionally, the Modified Interest Subvention Scheme (MISS) received ₹22,600 crore to provide concessional credit to farmers. However, the allocation for the Crop Insurance Scheme has been reduced by 23% to ₹12,242 crore. ​ These budgetary provisions underscore the government’s ongoing commitment to supporting the agricultural sector, focusing on income support, credit facilitation, and risk mitigation for farmers.​

Correct Answer:  (b) ₹167,887 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹167,887 crore for fertilizer subsidies. This allocation includes ₹118,000 crore for urea subsidies and ₹49,000 crore for Nutrient-Based Subsidy (NBS) for phosphatic and potassic (P&K) fertilizers. This represents a slight decrease from the revised estimate of ₹171,000 crore in the previous fiscal year. The reduction reflects the government’s efforts to manage fiscal expenditures while continuing to support the agricultural sector. Fertilizer subsidies are crucial for ensuring that farmers have access to affordable fertilizers, thereby promoting agricultural productivity and food security in the country.​

Correct Answer:  (c) 0.3%

Explanation:  In the Union Budget for the fiscal year 2025-26, India’s Effective Revenue Deficit (ERD) is projected at 0.3% of the Gross Domestic Product (GDP). This marks a significant reduction from the previous fiscal year’s ERD of 0.5% of GDP. The ERD represents the shortfall in revenue accounts after accounting for grants-in-aid used for capital asset creation. The decline in ERD reflects the government’s commitment to fiscal consolidation and improved expenditure management. By reducing the ERD, the government aims to enhance the quality of public spending, directing more resources towards productive capital investments that can stimulate economic growth. This fiscal strategy aligns with broader efforts to maintain macroeconomic stability and promote sustainable development.​

Correct Answer:  (c) 16%

Explanation:  In the Union Budget for the fiscal year 2025-26, 16% of the total government expenditure is allocated to Central Sector Schemes, excluding Defence and Major Subsidies. This allocation underscores the government’s commitment to directly funded programs aimed at various sectors such as agriculture, education, health, and infrastructure development. Central Sector Schemes are fully financed by the central government and implemented by central agencies, distinguishing them from Centrally Sponsored Schemes, which involve shared funding with state governments. The 16% allocation reflects a strategic focus on initiatives that can drive national development objectives and deliver targeted benefits across the country.

Correct Answer:  (b) ₹13,560 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government has significantly increased funding for skill development and apprenticeship programs. The Ministry of Skill Development and Entrepreneurship’s budget has nearly doubled, rising from ₹3,241 crore in the previous fiscal year to ₹6,017 crore in 2025-26. Additionally, the Ministry of Labour and Employment has received an allocation of ₹38,746.3 crore, marking an 80% increase from the previous year’s ₹21,608 crore. These allocations underscore the government’s commitment to enhancing vocational training, upgrading Industrial Training Institutes (ITIs), and expanding apprenticeship opportunities to equip the youth with industry-relevant skills, thereby addressing employment challenges and fostering economic growth.​

Correct Answer:  (b) ₹20,516.61 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government allocated ₹20,516.61 crore to the Ministry of External Affairs (MEA). This allocation represents a 15.45% increase compared to the previous year’s budget, excluding provisions for the Export-Import (EXIM) Bank. ​ A significant portion of this budget is directed towards India’s “Neighbourhood First” policy, emphasizing aid and development partnerships with neighboring countries. For instance, Bhutan continues to be the largest recipient of India’s foreign aid, with an allocation of ₹2,150 crore, up from the previous year’s ₹2,068 crore. Additionally, the Maldives’ allocation increased to ₹600 crore from ₹400 crore, reflecting India’s commitment to strengthening regional ties. ​ However, it’s noteworthy that the MEA’s allocation as a percentage of the total government budget has declined from 0.46% in FY 2024-25 to 0.41% in FY 2025-26, prompting discussions about aligning resources with India’s expanding global engagements.

Correct Answer:  (d) 5.6%

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government’s gross tax revenue is projected at ₹42,70,233 crore, with customs duty collections estimated at ₹2,40,000 crore. This means that customs duties account for approximately 5.6% of the total gross tax revenue. When considering the government’s net tax revenue (after devolution to states) of ₹28,37,409 crore, customs duties represent about 8.5% of this amount. ​

These figures highlight the significant role of customs duties in India’s tax structure, contributing notably to the government’s revenue. The government has been focusing on rationalizing customs tariffs to promote domestic manufacturing and facilitate trade, as evidenced by recent reductions in customs tariff rates and exemptions for certain goods.

Correct Answer:  (a) ₹5,850.37 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Ministry of Law and Justice has been allocated ₹5,850.37 crore. This represents a 23% reduction from the previous year’s allocation of ₹7,604 crore. ​ The decreased funding is expected to impact various programs under the ministry, including the Gram Nyayalaya scheme, which aims to establish village courts to provide accessible justice at the grassroots level. This scheme has been allocated ₹2 crore for the 2025-26 fiscal year. ​

The reduction in budget has raised concerns among legal professionals and stakeholders about potential challenges in addressing issues such as legal aid rates, court infrastructure, and the backlog of cases in the judicial system. Ensuring adequate resources for the justice system is crucial for maintaining the rule of law and providing timely justice to citizens.​

Correct Answer:  (c) ₹12,100 crore

Explanation:  In the Union Budget for the fiscal year 2025-26, the Indian government has allocated ₹12,100 crore for petroleum subsidies. This allocation is primarily intended to provide financial support for liquefied petroleum gas (LPG) subsidies to oil marketing companies (OMCs). Notably, this represents a reduction from the previous fiscal year’s revised estimate of ₹14,700 crore. ​

The decrease in LPG subsidy allocation reflects the government’s ongoing efforts to rationalize subsidy expenditures and promote more market-aligned pricing mechanisms. Additionally, the budget includes provisions to enhance India’s energy security, such as the allocation of ₹5,876 crore for the development of strategic petroleum reserves. These initiatives aim to bolster the country’s resilience against global energy supply disruptions while managing fiscal prudence.​

Correct Answer:  (b) 8%

Explanation:  In the Union Budget for the fiscal year 2025-26, Finance Commission transfers and other grants are allocated 8% of the total government expenditure. This allocation reflects the central government’s commitment to supporting state governments through financial devolution and grants-in-aid, enabling them to fund various development projects and meet their fiscal needs. Such transfers are essential for maintaining fiscal federalism and ensuring balanced regional development across the country.