Union Budget 2026: Most Important MCQs for Bank & Govt Exams

If you are preparing for competitive exams, Union Budget 2026: Most Important MCQs for Bank & Govt Exams is a crucial topic for scoring high marks in the General Awareness and Economy section. This article compiles the exact MCQs discussed in the session, along with answers and explanations, to help you revise important budget provisions quickly and effectively.

Union Budget 2026: Most Important MCQs for Bank & Govt Exams

Here are the most important MCQs on the Union Budget 2026 by Sushmita Ma’am to boost your preparation for bank and other government exams:

1. Who has presented the Union Budget continuously for the highest number of times under the same Prime Minister?

Answer: Nirmala Sitharaman
Explanation: The Finance Minister presents the Union Budget. Nirmala Sitharaman has presented it consecutively for 9 years under the same Prime Minister. The budget is prepared by the Department of Economic Affairs, but presented by the Finance Minister.

2. The term “Budget” is referred to as what in the Constitution of India? Under which Article?

Answer: Annual Financial Statement - Article 112
Explanation: The word “Budget” is not mentioned in the Constitution. Instead, it is called the Annual Financial Statement under Article 112.

3. As per the Union Budget 2026, what is the largest source of government funds?

Answer: Borrowing and Other Liabilities
Explanation: Around 24% of total receipts come from Borrowing and Other Liabilities, making it the largest source.

4. Where does the highest government expenditure go as per the budget?

Answer: State Share of Taxes
Explanation: The highest expenditure is allocated to the devolution of taxes to states (State Share of Taxes).

5. Which statements regarding Union Budget 2026–27 are correct?

• Presented at Kartavya Bhavan.

• Inspired by three Kartavyas (economic growth, people’s aspirations, inclusive access)

• Focus on youth-driven approach and disadvantaged sections.

Answer: All three statements are correct.

6. What is the estimated Fiscal Deficit target for FY 2026-27?

Answer: 4.3% of GDP
Explanation: Last year’s target was 4.4%, achieved successfully. The new target is 4.3%.

Formula of Fiscal Deficit:
Total Expenditure – Total Revenue (excluding borrowings)

7. What is the total expenditure estimated for FY 2026-27?

Answer: ₹53.5 lakh crore
Explanation: This includes defence, pensions, state share, infrastructure, etc.

8. What is the Gross Market Borrowing for FY 2026-27?

Answer: ₹17.2 lakh crore

9. What is the Net Market Borrowing for FY 2026-27?

Answer: ₹11.7 lakh crore
Explanation: Net Market Borrowing = Gross Market Borrowing - Old Debt Repayments

10. Under Bio-Pharma Shakti, how much allocation has been made?

Answer: ₹10,000 crore for 5 years
Full Form of SHAKTI: Strategy for Health Care Advancement Through Knowledge, Technology and Innovation

11. What is the allocation for the SME Growth Fund?

Answer: ₹10,000 crore

12. How many legacy industrial clusters will be revived?

Answer: 200 clusters

13. What is the Capital Expenditure (Capex) for infrastructure?

Answer: ₹12.2 lakh crore
Explanation: Capex leads to asset creation, such as highways, hospitals, and institutions.

14. How many new National Waterways are proposed in the next 5 years?

Answer: 20

15. Allocation for Carbon Capture, Utilization and Storage (CCUS)?

Answer: ₹20,000 crore for 5 years

16. Allocation for each City Economic Region (7 regions)?

Answer: ₹5,000 crore for 5 years

17. How many new All India Institute of Ayurveda (AIIA) will be established?

Answer: Total 3

18. What will be established in every district through VGF and capital support?

Answer: Girls’ Hostel

19. Which initiative will transform the sports sector?

Answer: Khelo India Mission

20. In “Bharat Vistar”, what does the second ‘A’ stand for?

Answer: Agricultural
Full Form: Virtually Integrated System to Access Agricultural Resources

21. Which initiative provides task-oriented roles for Divyangjans?

Answer: Divyangjan Kaushal Yojana

22. Finance Commission Grant to states (recommended by 16th FC)?

Answer: ₹1.4 lakh crore

23. When will the New Income Tax Act become effective?

Answer: April 2026

24. TCS under Liberalised Remittance Scheme reduced to?

Answer: 2% (from 5%)

25. Immunity for non-disclosure of foreign immovable assets up to?

Answer: ₹20 lakh

26. Dividend tax exemption for the cooperative sector is for how many years?

Answer: 3 years

27. Safe Harbour threshold for IT services enhanced to?

Answer: ₹2000 crore

28. Tax holiday for foreign companies providing cloud services using Indian data centres until?

Answer: 2047

29. Tax exemption for non-residents supplying capital goods to toll manufacturers for how many years?

Answer: 5 years

30. Duty-free import limit for specified inputs for seafood exports increased to?

Answer: 3%