Prelims Mantra (Practice Questions) (02/02/2026)

Question 1 of 11

1. Question

Consider the following proposals made in Union Budget 2026–27:

1. Introduction of “Education to Employment and Enterprise” Standing Committee

2. Safe Harbour threshold for IT services enhanced significantly

3. Cap on fiscal deficit at 3.5% of GDP

Which of the statements given above are correct?

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

Question 2 of 11

2. Question

Which of the following reflects the Government of India’s intent in Budget 2026–27?

I. Boosting human capital through targeted education-industry linkages

II. Reducing capital expenditure to lower fiscal pressure

III. Promoting India as a global hub for AI Data Centres

Select correct answer using the code below:

a) I only
b) I & III only
c) II & III only
d) I, II & III

Question 3 of 11

3. Question

In the context of Budget 2026–27, what does raising the threshold for Safe Harbour provisions primarily aim to do?

a) Protect agriculture from import competition
b) Attract and formalize IT services sector investments
c) Expand public procurement in defence manufacturing
d) Increase tax on speculative financial transactions

Question 4 of 11

4. Question

With reference to Budget 2026–27, the term ‘Semiconductor Mission 2.0’ refers to initiatives aimed at:

a) Enhancing semiconductor imports
b) Subsidizing consumer electronics imports
c) Regulating semiconductor prices domestically
d) Building a global fabrication ecosystem in India

Question 5 of 11

5. Question

Which of these is a direct application of the ‘Bharat-VISTAAR’ initiative announced in the Budget 2026–27?

a) Universal basic income for farmers
b) AI-based farm advisory for productivity
c) Crop insurance premium subsidy
d) Direct electricity subsidy for irrigation

Question 6 of 11

6. Question

Under India’s disaster management framework, classifying heatwaves and lightning as national disasters would primarily help in which of the following?

1. Direct release of mitigation funds from National Disaster Response Fund (NDRF)

2. Standardise early warning dissemination at district level

3. Inclusion in national risk atlas and planning

Select the correct answer using the code given below:

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

Question 7 of 11

7. Question

Which Article of the Indian Constitution provides for the establishment of the Finance Commission that recommended including heatwaves and lightning as disasters?

a) Article 280
b) Article 256
c) Article 300A
d) Article 142

Question 8 of 11

8. Question

One of the features of the new Income Tax Act, 2025, is a special disclosure scheme (FAST DS). Its primary objective is to:

a) Facilitate taxation of offshore companies
b) Encourage voluntary disclosure of small foreign assets
c) Reduce domestic tax rates for startups
d) Impose penalty on undeclared income

Question 9 of 11

9. Question

Under the new Income Tax Act, 2025 which of the following statements is correct?

a) Filing revised returns closes on 31st December of the assessment year
b) Decriminalisation applies only to tax evasion cases
c) Different deadlines for filing returns based on taxpayer category
d) Foreign assets disclosure is mandatory

Question 10 of 11

10. Question

The Biopharma Shakti initiative aims primarily at:

a) Expanding import of pharmaceutical raw materials
b) Increasing patent protection for foreign firms in India
c) Strengthening domestic biopharmaceutical research and manufacturing
d) Subsidising traditional medicine exports exclusively

Question 11 of 11

11. Question

If the RBI keeps the policy repo rate unchanged when inflation is within the target band, the likely aim is to:

a) Restrict growth drastically
b) Increase fiscal deficit
c) Lower foreign exchange reserves
d) Support economic growth while maintaining inflation stability

Prelims Mantra (Practice Questions) (02/02/2026)