Union Budget 2026–27 Summary & Polity MCQs(40) for UPSC and State PSCs Prelims.

 

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Q1. Consider the following regarding the Union Budget:

1. Budget is constitutionally termed as Annual Financial Statement.

2. It includes only revenue receipts and revenue expenditure.

3. It is presented under Article 112.

4. It is prepared by the Ministry of Finance.

Which are correct?

A) 1 and 3 only

B) 1, 3 and 4 only

C) 2 and 4 only

D) 1, 2, 3 and 4

Answer: B

---

 Q2. With reference to Revenue Deficit:

1. It is excess of revenue expenditure over revenue receipts.

2. It indicates dissaving of the government.

3. It includes capital expenditure.

4. It is always equal to fiscal deficit.

Which are correct?

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2 and 4 only

D) 1, 2, 3 and 4

Answer: A

---

 Q3. Consider the following about Finance Bill:

1. It contains taxation proposals.

2. It is introduced in Lok Sabha.

3. It is classified as a Money Bill.

4. Rajya Sabha can amend it freely.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q4. With reference to Public Account of India:

1. It is mentioned under Article 266.

2. Government acts as a banker.

3. Parliamentary approval is required for withdrawal.

4. It includes provident fund deposits.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q5. Consider the following about Fiscal Responsibility and Budget Management (FRBM) Act:

1. It aims to ensure fiscal discipline.

2. It mandates fiscal policy statements.

3. It completely prohibits fiscal deficit.

4. It applies only to state governments.

Which are correct?

A) 1 and 2 only

B) 1, 2 and 4 only

C) 3 and 4 only

D) 1, 2 and 3 only

Answer: A

---

 Q6. With reference to Appropriation Bill:

1. It authorizes withdrawal from Consolidated Fund of India.

2. It is a Money Bill.

3. Rajya Sabha can amend it.

4. It is introduced after Demands for Grants are voted.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q7. Consider the following regarding Capital Receipts:

1. They create liability or reduce assets.

2. Borrowings are capital receipts.

3. Disinvestment proceeds are capital receipts.

4. They always increase government revenue permanently.

Which are correct?

A) 1, 2 and 3 only

B) 2 and 4 only

C) 1 and 4 only

D) 1, 2, 3 and 4

Answer: A

---

 Q8. With reference to Primary Deficit:

1. It is fiscal deficit minus interest payments.

2. It indicates current year’s borrowing burden.

3. If interest payment is zero, fiscal deficit equals primary deficit.

4. It always remains positive.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q9. Consider the following about Securities Transaction Tax (STT):

1. It is a direct tax.

2. It is levied on stock exchange transactions.

3. It is collected by stock exchanges.

4. It applies only to equity shares.

Which are correct?

A) 1, 2 and 3 only

B) 2 and 4 only

C) 1 and 4 only

D) 1, 2, 3 and 4

Answer: A

---

 Q10. With reference to Safe Harbour Rules:

1. They provide tax certainty.

2. They reduce transfer pricing disputes.

3. They automatically exempt all foreign companies from tax.

4. They prescribe acceptable profit margins.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q11. Consider the following regarding Vote on Account:

1. It allows government to withdraw money temporarily.

2. It is passed before full budget.

3. It is valid for the entire financial year.

4. It is mentioned under Article 116.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q12. With reference to Contingency Fund of India:

1. It is mentioned under Article 267.

2. It is operated by the President.

3. It requires prior parliamentary approval for withdrawal.

4. It is used for unforeseen expenditure.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q13. Consider the following about Non-Tax Revenue:

1. It includes dividends from PSUs.

2. It includes interest receipts.

3. It includes borrowings.

4. It includes spectrum fees.

Which are correct?

A) 1, 2 and 4 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q14. With reference to Consolidated Fund of India:

1. It is mentioned in Article 266.

2. All government revenues are credited into it.

3. Withdrawal requires parliamentary approval.

4. It includes public provident fund deposits.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q15. Consider the following regarding Demands for Grants:

1. They are voted only in Lok Sabha.

2. Each ministry presents separate demand.

3. Rajya Sabha votes on them.

4. They precede Appropriation Bill.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

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---

 Q16. With reference to Capital Expenditure:

1. It leads to creation of assets.

2. It reduces liabilities.

3. It includes loans given by government.

4. It always results in immediate revenue generation.

Which are correct?

A) 1 and 3 only

B) 1, 2 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q17. Consider the following about Debt-to-GDP ratio:

1. It measures sustainability of government debt.

2. Higher ratio always means default.

3. It compares public debt with GDP.

4. It is used in fiscal analysis.

Which are correct?

A) 1, 3 and 4 only

B) 1 and 2 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q18. With reference to Buyback of shares:

1. Company purchases its own shares.

2. It usually happens below market price.

3. It reduces number of outstanding shares.

4. It is always tax-free.

Which are correct?

A) 1 and 3 only

B) 1, 2 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q19. Consider the following about Basic Customs Duty (BCD):

1. It is levied under Customs Act, 1962.

2. It is imposed on import of goods.

3. It is a direct tax.

4. It is part of indirect taxes.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q20. With reference to Medium-Term Fiscal Policy Statement:

1. It is mandated under FRBM Act.

2. It is part of budget documents.

3. It lays down fiscal targets.

4. It is presented by RBI.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A    

 Polity Prelims MCQs:

Q1. Consider the following regarding the Preamble:

1. It is part of the Constitution.

2. It is enforceable in a court of law.

3. It can be amended under Article 368.

4. It grants power to the legislature.

Which are correct?

A) 1 and 3 only

B) 1, 2 and 4 only

C) 2 and 3 only

D) 1, 3 and 4 only

 Answer: A

---

 Q2. With reference to Fundamental Rights:

1. They are available only against State action.

2. They can be suspended during National Emergency.

3. Parliament can amend them.

4. They are absolute in nature.

Which are correct?

A) 1, 2 and 3 only

B) 2 and 4 only

C) 1 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q3. Consider the following about Article 32:

1. It is itself a Fundamental Right.

2. It can be suspended during National Emergency.

3. It empowers the Supreme Court to issue writs.

4. It can be invoked only after exhausting all other remedies.

Which are correct?

A) 1 and 3 only

B) 1, 2 and 3 only

C) 2 and 4 only

D) 1, 3 and 4 only

 Answer: B

---

 Q4. With reference to the Vice-President of India:

1. He is ex-officio Chairman of Rajya Sabha.

2. He is elected by an electoral college including State Legislatures.

3. He acts as President when vacancy occurs.

4. He continues in office until successor assumes charge.

Which are correct?

A) 1, 3 and 4 only

B) 1 and 2 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q5. Consider the following regarding Money Bills:

1. They can be introduced only in Lok Sabha.

2. Rajya Sabha must pass them within 14 days.

3. Speaker’s decision is final.

4. President can return a Money Bill for reconsideration.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q6. With reference to the Attorney General of India:

1. He is appointed by the President.

2. He must be qualified to be a Supreme Court judge.

3. He has right to vote in Parliament.

4. He holds office during pleasure of the President.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q7. Consider the following about the Supreme Court:

1. It is a court of record.

2. It has advisory jurisdiction.

3. It can review its own judgments.

4. It can transfer High Court judges.

Which are correct?

A) 1, 2 and 3 only

B) 1, 2, 3 and 4

C) 2 and 4 only

D) 1 and 3 only

 Answer: B

---

 Q8. With reference to the Governor:

1. He is appointed by the President.

2. He holds office for a fixed five-year term.

3. He can reserve bills for President.

4. He is an agent of the Union.

Which are correct?

A) 1, 3 and 4 only

B) 1 and 2 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q9. Consider the following about Constitutional Amendments:

1. All amendments require ratification by states.

2. Amendment bill can be introduced in either House.

3. President must give assent.

4. Joint sitting is allowed.

Which are correct?

A) 2 and 3 only

B) 1, 2 and 4 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q10. With reference to Fundamental Duties:

1. They are enforceable by courts.

2. They were added by the 42nd Amendment.

3. They apply only to citizens.

4. Parliament can impose penalties for violation.

Which are correct?

A) 2, 3 and 4 only

B) 1 and 2 only

C) 3 and 4 only

D) 1, 2, 3 and 4Answer: A

---

 Q11. Consider the following regarding National Emergency:

1. Proclaimed under Article 352.

2. Grounds include armed rebellion.

3. Automatically suspends all Fundamental Rights.

4. Requires parliamentary approval.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q12. With reference to Rajya Sabha:

1. It is a permanent House.

2. One-third members retire every two years.

3. It can initiate Money Bills.

4. It represents states.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q13. Consider the following about Lok Sabha Speaker:

1. Decides Money Bill status.

2. Presides over joint sitting.

3. Can vote only in case of tie.

4. Is subordinate to the Prime Minister.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q14. With reference to the Finance Commission:

1. It is a constitutional body.

2. Constituted every five years.

3. Recommends tax distribution.

4. Its recommendations are binding.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

Answer: A

---

 Q15. Consider the following about Public Interest Litigation:

1. Can be filed by any public-spirited person.

2. Only Supreme Court can entertain it.

3. It relaxes locus standi.

4. It is mentioned in the Constitution.

Which are correct?

A) 1 and 3 only

B) 1, 2 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q16. With reference to the Comptroller and Auditor General (CAG):

1. Appointed by the President.

2. Removed like Supreme Court judge.

3. Audits government accounts.

4. Works under Ministry of Finance.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q17. Consider the following regarding Ordinances:

1. Issued by the President.

2. Have same force as law.

3. Must be approved within six weeks of reassembly.

4. Can amend the Constitution.

Which are correct?

A) 1, 2 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q18. With reference to the Election Commission:

1. It is a constitutional body.

2. Chief Election Commissioner enjoys security of tenure.

3. It conducts local body elections.

4. It decides election schedules.

Which are correct?

A) 1, 2 and 4 only

B) 1 and 3 only

C) 2 and 3 only

D) 1, 2, 3 and 4

 Answer: A

---

 Q19. Consider the following about the Prime Minister:

1. Appointed by the President.

2. Must be member of Lok Sabha only.

3. Head of Council of Ministers.

4. Holds office during pleasure of President.

Which are correct?

A) 1 and 3 only

B) 1, 3 and 4 only

C) 2 and 4 only

D) 1, 2, 3 and 4

 Answer: B

---

 Q20. With reference to Directive Principles:

1. They are non-justiciable.

2. They aim at welfare state.

3. They override Fundamental Rights.

4. They are enforceable by courts.

Which are correct?

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2 and 4 only

D) 1, 2, 3 and 4

 Answer: A