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