MCQ on the Union Budget 2025-26

Union Budget 2025-26

Here are high-quality
multiple-choice questions (MCQs) based on the Union Budget 2025-26, designed to
align with the UPSC Civil Services Exam pattern. These questions cover key
concepts, facts, and analytical aspects relevant to the UPSC Prelims:

 
High Quality MCQs on the Union Budget 2025-26:

1. Which of
the following is NOT a key principle of ‘Viksit Bharat’ as per the Union Budget
2025-26?

(a) Zero Poverty
(b) 100% Renewable Energy Usage
(c) 100% Quality School Education
(d) 70% Women in Economic Activities

Answer: (b) 100% Renewable Energy Usage
Explanation: The key principles of ‘Viksit Bharat’ include
zero poverty, quality education, affordable healthcare, skilled labor, women’s
economic participation, and farmers’ empowerment. Renewable energy is important
but not explicitly listed as a principle.

2. The
‘Mission for Aatmanirbharta in Pulses’ focuses on which of the following crops?

(a) Wheat and Rice
(b) Cotton and Jute
(c) Tur, Urad, and Masoor
(d) Sugarcane and Maize

Answer: (c) Tur, Urad, and Masoor
Explanation: The 6-year mission aims to enhance
self-sufficiency in pulses like Tur, Urad, and Masoor, reducing dependence on
imports.

3. What is
the new loan limit for the Kisan Credit Card as per Budget 2025-26?

(a) ₹2 lakh
(b) ₹3 lakh
(c) ₹5 lakh
(d) ₹7 lakh

Answer: (c) ₹5 lakh
Explanation: The government has increased the loan limit under
the Kisan Credit Card from ₹3 lakh to ₹5 lakh to provide better financial
support to farmers.

4. The
‘National Manufacturing Mission’ is aimed at strengthening which sectors?

(a) Only Small Enterprises
(b) Only Large Enterprises
(c) Small, Medium, and Large Industries
(d) Only Export-Oriented Units

Answer: (c) Small, Medium, and Large
Industries
Explanation: The National Manufacturing Mission aims to boost
manufacturing across industries of all sizes to promote economic growth and
self-reliance.

5. What is
the allocated budget for setting up Artificial Intelligence Centres of
Excellence?

(a) ₹100 crore
(b) ₹250 crore
(c) ₹500 crore
(d) ₹750 crore

Answer: (c) ₹500 crore
Explanation: The government has allocated ₹500 crore for
setting up AI Centres of Excellence to integrate AI into education and
innovation.

6.
‘BharatTradeNet (BTN)’ is a digital platform for which sector?

(a) Agriculture
(b) MSMEs
(c) Exports and Trade Documentation
(d) Banking and Finance

Answer: (c) Exports and Trade Documentation
Explanation: BharatTradeNet (BTN) is designed to streamline
trade documentation and financing, boosting India’s global trade
competitiveness.

7. As per
the new income tax slabs, what is the tax rate for individuals earning between
₹8–12 lakh per annum?

(a) 5%
(b) 10%
(c) 15%
(d) 20%

Answer: (b) 10%
Explanation: According to the new tax slabs, individuals
earning between ₹8–12 lakh per annum will be taxed at 10%.

8. What is
the revised fiscal deficit target for 2025-26?

(a) 3.8% of GDP
(b) 4.0% of GDP
(c) 4.4% of GDP
(d) 4.8% of GDP

Answer: (c) 4.4% of GDP
Explanation: The government has set a fiscal deficit target of
4.4% of GDP for 2025-26 to maintain fiscal discipline.

9. Which of
the following taxation reforms was introduced in Union Budget 2025-26?

(a) TDS/TCS Rationalization
(b) Abolition of GST
(c) Higher Import Duties on Agricultural Goods
(d) Introduction of Cryptocurrency Tax

Answer: (a) TDS/TCS Rationalization
Explanation: The government has rationalized TDS/TCS
thresholds, particularly benefiting senior citizens and rental payments.

10. What is
the new standard deduction for salaried individuals?

(a) ₹50,000
(b) ₹60,000
(c) ₹75,000
(d) ₹1,00,000

Answer: (c) ₹75,000
Explanation: The standard deduction for salaried individuals
has been increased to ₹75,000 to provide additional tax relief.

 

11. Which scheme in
the Union Budget 2025-26 aims to enhance productivity and crop diversification?

a) PM Kisan Samman Nidhi
b) Prime Minister Dhan-Dhaanya Krishi Yojana
c) Rashtriya Krishi Vikas Yojana
d) National Food Security Mission

Answer: b) Prime Minister Dhan-Dhaanya Krishi
Yojana

Explanation: The Prime Minister Dhan-Dhaanya
Krishi Yojana is introduced in the Union Budget 2025-26 to boost productivity,
crop diversification, and rural prosperity.

12. Which initiative
under the MSME sector aims to promote ‘Made in India’ products globally?

a) National Manufacturing
Mission
b) New Scheme for Women Entrepreneurs
c) Global Hub for Toys
d) MSME Credit Support Scheme

Answer: c) Global Hub for Toys

Explanation: The ‘Global Hub for Toys’ initiative
is aimed at promoting India’s toy manufacturing sector on a global scale.

13. The Atal
Tinkering Labs initiative aims to set up how many labs in government schools?

a) 25,000
b) 30,000
c) 50,000
d) 75,000

Answer: c) 50,000

Explanation: The Atal Tinkering Labs initiative
plans to establish 50,000 labs in government schools to encourage innovation
among students.

14. The government
has increased the FDI limit in which sector to 100% in the budget?

a) Banking
b) Insurance
c) Retail
d) Healthcare

Answer: b) Insurance

Explanation: The Union Budget 2025-26 proposes
increasing the FDI limit in the insurance sector from 74% to 100% to attract
more investment.

15. What is the main
objective of the Urban Challenge Fund introduced in the budget?

a) Promote affordable housing
b) Fund smart city projects
c) Support city redevelopment and sanitation
d) Strengthen urban transport networks

Answer: c) Support city redevelopment and
sanitation

Explanation: The Urban Challenge Fund, with an
outlay of ₹1 lakh crore, focuses on city redevelopment and improving water
sanitation infrastructure.

16. Which scheme
under the budget provides term loans of up to ₹2 crore to first-time women and
marginalized entrepreneurs?

a) Mudra Yojana
b) New Scheme for Women and Marginalized Groups
c) Stand-Up India Scheme
d) Startup India Seed Fund

Answer: b) New Scheme for Women and
Marginalized Groups

Explanation: The budget introduces a new scheme
that provides term loans of up to ₹2 crore to 5 lakh first-time women and
marginalized entrepreneurs.

17. The Asset
Monetization Plan 2025-30 aims to raise how much capital for reinvestment?

a) ₹5 lakh crore
b) ₹7.5 lakh crore
c) ₹10 lakh crore
d) ₹15 lakh crore

Answer: c) ₹10 lakh crore

Explanation: The Asset Monetization Plan 2025-30
aims to generate ₹10 lakh crore, which will be reinvested in new infrastructure
projects.

18. Which sector
benefits from customs duty exemptions on 36 lifesaving drugs?

a) Agriculture
b) Pharmaceuticals
c) Textile
d) Manufacturing

Answer: b) Pharmaceuticals

Explanation: The budget provides customs duty
exemptions on 36 lifesaving drugs and 37 medicines for cancer, rare diseases,
and chronic conditions.

19. The taxation
reform in the budget has rationalized TDS/TCS thresholds primarily for which
group?

a) Corporate firms
b) Middle-class taxpayers
c) Senior citizens
d) Freelancers

Answer: c) Senior citizens

Explanation: The budget increases the TDS/TCS
threshold for senior citizens and rent payments to ease their tax burden.

20. Which mission in
the budget focuses on boosting high-yielding seeds and cotton productivity?

a) National Mission on
Agricultural Productivity
b) High-Yielding Seed Initiative
c) National Mission on High-Yielding Seeds and Cotton Productivity
d) Agricultural Modernization Programme

Answer: c) National Mission on High-Yielding
Seeds and Cotton Productivity

Explanation: The budget introduces this mission to
enhance agricultural output through better seeds and increased cotton
productivity.

21. What is the main
goal of the Vivad Se Vishwas Scheme mentioned in the budget?

a) Resolving tax disputes
b) Enhancing financial literacy
c) Digitalizing banking services
d) Promoting MSMEs

Answer: a) Resolving tax disputes

Explanation: The Vivad Se Vishwas Scheme aims to
settle tax disputes amicably, with over 33,000 taxpayers having already availed
of its benefits.

 

22. With reference to the Union
Budget, consider the following statements:

1. The Annual Financial Statement is presented under Article 112 of
   the Indian Constitution.
2. No demand for a grant can be made without the recommendation of
   the President of India.

Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c) Both 1 and 2

 

23. Which constitutional provision
ensures that taxes can only be levied with the approval of Parliament?
a) Article 112
b) Article 265
c) Article 266
d) Article 360

Answer: b) Article 265

 

Also Read:
Summary of Union Budget 2025-26