✅ What is Union Budget 2025-26?
- The Union Budget is the annual financial statement of the Government of India, presented in Parliament, detailing proposed receipts and expenditures for the fiscal year.
- The 2025 budget covers FY 2025-26 — setting policy direction, fiscal framework, tax laws, allocations to sectors (infrastructure, agriculture, states, social welfare, etc.).
📄 Section-wise Notes
1. Fiscal Framework & Key Numbers
| Item | Exact | Easy Approx (for memory) |
|---|---|---|
| Total Expenditure | ₹ 50,65,345 cr | ₹ 50.7 lakh cr ≈ ₹ 51 lakh cr |
| Revenue Receipts | ₹ 34,96,409 cr | ₹ 35 lakh cr |
| Capital Expenditure | ₹ 11,21,090 cr | ₹ 11.2 lakh cr ≈ ₹ 11 lakh cr |
| Net Borrowings | ₹ 15,68,936 cr | ₹ 15.7 lakh cr ≈ ₹ 16 lakh cr |
| Nominal GDP Growth (assumption) | ~10.1% | 10% (approx) |
Simple Mnemonic for Values
“Govt spends 51, earns 35, borrows 16, builds with 11.”
Growth % Numbers
- Total Expenditure ↑ 7.4%
- Revenue Receipts ↑ ~11.1%
- Capital Expenditure ↑ ~10.1%
- Nominal GDP ↑ ~10.1%
“7, 11, 10, 10 – Budget Growth Engine.”
“Spending grows slower (7), income grows faster (11),
investment & GDP move together (10 & 10).”
2. Taxation & Direct-Tax Reforms
Key Proposals:
- Under the new tax regime, income up to ₹ 12 lakh per annum remains tax-free. Wikipedia+2Press Information Bureau+2
- Above ₹ 12 lakh, revised slabs and rates apply as announced in the Budget. Wikipedia+1
- The Budget proposes a comprehensive overhaul of direct tax law: the Income‑tax Act, 2025 — replacing the older 1961 Act. Wikipedia+2Vision IAS+2
- New Act has 536 sections (reduced from over 800), aims for simpler, clearer law, fewer disputes, easier compliance, and a unified “Tax Year” instead of old “Previous Year / Assessment Year” concept. Wikipedia+1
- Features include digital-first and faceless assessments, faster refunds, clarified standard deductions (e.g. home loan interest), and stricter rules on anonymity for certain transactions. Wikipedia+1
Implications for banking/finance aspirants:
- Middle class gets relief → disposable incomes ↑ → potential increase in savings, deposits, demand for loans.
- Simpler tax law → fewer litigations, better compliance.
- Banks may see more formal credit demand, better documentation, increased financial inclusion.
3. Support to States & Infrastructure, Urban & Rural Development
- Govt proposes ₹ 1.5 lakh crore as 50-year interest-free loans to States for capital expenditure and incentivising reforms. Press Information Bureau+1
- New Asset-Monetization Plan (2025–30): target to mobilize ₹ 10 lakh crore from monetizing public assets — to reinvest in new infrastructure/ development projects. Press Information Bureau+1
- Urban focus: announcement of Urban Challenge Fund of ₹ 1 lakh crore — for “Cities as Growth Hubs”, urban redevelopment, water & sanitation, city-level infrastructure. ₹ 10,000 crore earmarked for 2025-26. Press Information Bureau+1
- Rural & Water: Continued funding to water/sanitation programmes, extension of missions (e.g. rural water schemes), rural development allocations increased for livelihood, housing, and livelihoods missions. India Budget+2PRS Legislative Research+2
Significance :
- More state/city-level infrastructure → need for project financing, construction finance, housing loans.
- Rural infrastructure & schemes → rise in rural credit demand, livelihood-based loans, agri-financing.
- Opportunity for banks/NBFCs in financing infrastructure, affordable housing, urban water/sanitation projects.
4. Agriculture, MSME, Investment & Export Push
- The Budget identifies four engines of growth: Agriculture, MSME, Investment & Exports. Press Information Bureau+2EY+2
- Under rural/agriculture: Launch of a comprehensive “Rural Prosperity & Resilience Programme” — aims at tackling under-employment in agriculture via skilling, technology, investments, improving rural income & reducing distress-driven migration. India Budget+1
- For MSMEs, small businesses, start-ups and entrepreneurs (especially women, SC/ST, marginalized) — budget encourages support, credit access, regulatory facilitation. EY+1
- Incentives to boost exports, investments (via tax rationalisation, simplified compliance, better infrastructure) — pushing domestic industry growth, trade finance, working-capital demand (good for banking sector). EY+1
5. Social Welfare, Education, Health & Human Capital
- Emphasis on rural welfare, livelihoods, women & youth employment through rural-development programmes. India Budget+1
- Continued funding to schemes for housing (especially rural), sanitation, water supply — helping social upliftment and inclusive growth. PRS Legislative Research+1
- Education/skill development & youth upliftment via rural-skill programmes as part of “Rural Prosperity & Resilience” — boosting employability, reducing rural-urban migration. India Budget+1
6. Regulatory & Structural Reforms + Signalling
- New direct-tax law (Income-tax Act, 2025) simplifies tax code — favourable to businesses, individuals, reduces disputes. Wikipedia+2Vision IAS+2
- Customs/Indirect tax rationalisation for industrial goods — helps manufacturing, trade, exports. India Budget+1
- Support for Public-Private Partnership (PPP) mode infrastructure development — inviting private participation. Press Information Bureau+1
- Long-term development planning: through asset-monetization, state-loans, urban & rural infrastructure investments — signals stable policy environment and growth orientation. Press Information Bureau+1
🔥 Most Important (Must Memorize)
- No income tax up to ₹ 12 lakh per annum under new tax regime. Wikipedia+1
- Income-tax Act, 2025 enacted (536 sections) — replacing old 1961 law; aims for simplification, unified Tax Year, faceless assessments, faster refunds. Wikipedia+2Vision IAS+2
- ₹ 1.5 lakh crore interest-free loans to states for capital expenditure. Press Information Bureau+1
- Asset Monetization Plan 2025–30 aiming to generate ₹ 10 lakh crore for new development/infrastructure. Press Information Bureau+1
- Budget’s four engines of growth: Agriculture, MSME, Investment, Exports. Press Information Bureau+2EY+2
- Focus on rural prosperity & resilience, social welfare, and inclusive development (rural livelihood, water, housing, youth) — signalling push for rural credit & social sector financing. India Budget+2PRS Legislative Research+2
Mnemonic to remember core thrust: “TAX-ZERO, STATES-CAPEX, ASSETS-MONEY, AG-MSME-INV-EXP” — highlighting tax relief, state support, asset monetization, and main growth engines.
🧮 Visual Table Summary
| Area / Topic | Key Proposals / Changes (Budget 2025) | Significance / Impact |
|---|---|---|
| Direct Tax / Income Tax | No tax up to ₹ 12 lakh; new tax slabs above; Income-tax Act 2025 | Relief to middle class; simpler tax law; reduces litigation |
| Government Spending & Fiscal Policy | Total expenditure ₹ 50.65 lakh cr; revenue & capital outlays ↑; borrowings planned | Macro-fiscal stability; stimulus to infrastructure & social sectors |
| State & Infrastructure Support | ₹ 1.5 lakh cr interest-free loans to states; asset monetization ₹ 10 lakh cr; PPP projects | Capital expenditure in infra; state-led development; boost to construction & related finance |
| Urban & Rural Development | Urban Challenge Fund ₹ 1 lakh cr; rural water, sanitation, livelihood & housing allocations | Improvement in civic / rural amenities; push for inclusive growth; increased demand for housing/ rural credit |
| Agriculture, MSME, Exports & Industry | Emphasis on agri-growth, MSME support, export/industrial incentives | Boost to agri income, MSME growth, working-capital demand, trade finance |
| Social Welfare, Education, Welfare | Rural youth & livelihood programmes; welfare for women/SC-ST; social sector funding | Strengthens social safety net; promotes inclusive financial inclusion & credit absorption |
| Regulatory & Tax Code Reform | New Income-tax Act, customs rationalization, easier compliance, PPP push | Easier business & compliance environment; increases investor confidence; improves formal credit flow |
🧠 Quick Memory Tricks
- Mnemonic for 4 growth engines: A-R-M-I → Agriculture, MSME, Investment, Exports.
- Tax relief phrase: “Zero-to-Twelve” → zero tax up to ₹ 12 lakh.
- Budget’s big push: “CAPEX-STATE + ASSET-MONEY” — easy way to recall state loans + asset monetization.
⏳ Quick Revision Sheet
- No tax for income up to ₹ 12 lakh under new regime.
- New simplified Income-tax Act, 2025 (536 sections) replaces 1961 law; unified Tax Year; faceless assessments.
- ₹ 1.5 lakh crore interest-free loans to states for capital expenditure.
- Asset-Monetization Plan 2025–30: target ₹ 10 lakh crore to fund new infra projects.
- Four engines of growth: Agriculture, MSME, Investment, Exports (A-E-M-I).
- Big allocation to rural/urban development: urban fund, rural welfare, water/sanitation, livelihoods.
- Government spends ₹ 50.65 lakh crore; both revenue & capital outlay rise — indicates fiscal stimulus.
Chapter 1: Basics & Fiscal Numbers (Union Budget 2025-26)
Q1. Union Budget 2025-26 relates to which financial year?
a) 2024-25
b) 2025-26
c) 2026-27
d) Calendar Year 2025
Answer: b) 2025-26
Explanation: Union Budget 2025-26 gives receipts and expenditure for FY 1 April 2025 to 31 March 2026. 👉 (HIGHLY IMPORTANT)
Q2. As per Union Budget 2025-26, total expenditure of the Central Government is estimated at approximately: PRS Legislative Research+1
a) ₹ 45.10 lakh crore
b) ₹ 47.80 lakh crore
c) ₹ 50.65 lakh crore
d) ₹ 55.00 lakh crore
Answer: c) ₹ 50.65 lakh crore
Explanation: Budget Estimates (BE) 2025-26 peg total expenditure at ₹ 50,65,345 crore. 👉 (HIGHLY IMPORTANT)
Q3. “Total receipts other than borrowings” in Budget 2025-26 are estimated at around: Press Information Bureau+1
a) ₹ 24.96 lakh crore
b) ₹ 30.65 lakh crore
c) ₹ 34.96 lakh crore
d) ₹ 40.00 lakh crore
Answer: c) ₹ 34.96 lakh crore
Explanation: Receipts excluding borrowings are estimated at about ₹ 34.96 lakh crore in 2025-26. 👉 (HIGHLY IMPORTANT)
Q4. Capital expenditure for 2025-26 in the Union Budget is closest to: PRS Legislative Research+1
a) ₹ 8.50 lakh crore
b) ₹ 10.00 lakh crore
c) ₹ 11.21 lakh crore
d) ₹ 13.00 lakh crore
Answer: c) ₹ 11.21 lakh crore
Explanation: Total capital expenditure is budgeted at ₹ 11,21,090 crore for 2025-26. 👉 (HIGHLY IMPORTANT)
Q5. In Union Budget 2025-26, which of the following is TRUE regarding growth of expenditure? PRS Legislative Research
a) Revenue and capital expenditure both decline
b) Revenue expenditure grows faster than capital expenditure
c) Capital expenditure grows faster than revenue expenditure
d) Both are unchanged
Answer: c) Capital expenditure grows faster than revenue expenditure
Explanation: RE is estimated to grow by about 6.7%, while capital expenditure grows by about 10.1% over 2024-25 (RE).
Q6. In the Budget 2025-26 “Rupee Comes From” chart, the largest share of receipts comes from: India Budget
a) Union Excise Duties
b) Income Tax
c) Borrowings and other liabilities
d) Goods and Services Tax and other taxes
Answer: c) Borrowings and other liabilities
Explanation: Borrowings & other liabilities contribute about 24% of total receipts, the largest single share.
Q7. In the “Rupee Goes To” breakup, the highest share of expenditure is towards: India Budget
a) Pensions
b) Defence
c) States’ share of taxes and duties
d) Major subsidies
Answer: c) States’ share of taxes and duties
Explanation: States’ share of taxes and duties take about 22% of expenditure—the largest component.
Q8. Which of the following correctly matches the share of “Interest Payments” in total expenditure (Budget 2025-26)? India Budget
a) 10%
b) 16%
c) 20%
d) 24%
Answer: c) 20%
Explanation: Interest payments account for about 20% of total expenditure in the “Rupee Goes To” chart.
Q9. Which four sectors are explicitly described as “engines of development” in the Key Features of Budget 2025-26? India Budget
a) Agriculture, MSME, Investment, Exports
b) Industry, Services, Tourism, Defence
c) Banking, Insurance, NBFC, Fintech
d) IT, Telecom, Pharma, Real Estate
Answer: a) Agriculture, MSME, Investment, Exports
Explanation: The budget document lists Agriculture, MSME, Investment and Exports as development engines. 👉 (HIGHLY IMPORTANT)
Q10. The guiding spirit mentioned in Key Features of Budget 2025-26 is: India Budget
a) Protectionism
b) Inclusivity
c) Privatization
d) Austerity
Answer: b) Inclusivity
Explanation: The budget highlights “Inclusivity” as the guiding spirit on the journey to Viksit Bharat.
Q11. Which mission related to drinking water is extended till 2028 with enhanced outlay in Budget 2025-26? India Budget+1
a) Swachh Bharat Mission
b) Jal Jeevan Mission
c) Atal Bhujal Yojana
d) Namami Gange
Answer: b) Jal Jeevan Mission
Explanation: Jal Jeevan Mission is extended till 2028 with higher funding to achieve full coverage. 👉 (HIGHLY IMPORTANT)
Q12. The broad macro aim of Union Budget 2025-26 is to move towards which long-term objective? India Budget
a) Digital Bharat
b) Make in India 2.0
c) Viksit Bharat
d) Swachh Bharat 2.0
Answer: c) Viksit Bharat
Explanation: The budget explicitly states “Destination: Viksit Bharat” as its long-term goal. 👉 (HIGHLY IMPORTANT)
Chapter 2: Direct Tax & Personal Tax Changes
Q13. Under the new tax regime announced in Union Budget 2025-26, NIL tax is payable (after rebate) on total income up to: Press Information Bureau+1
a) ₹ 5 lakh
b) ₹ 7 lakh
c) ₹ 10 lakh
d) ₹ 12 lakh
Answer: d) ₹ 12 lakh
Explanation: Rebate under the new regime has been raised so that income up to ₹ 12 lakh results in zero tax if ITR is filed. 👉 (HIGHLY IMPORTANT)
Q14. For salaried taxpayers under the new regime, NIL tax is available for gross income up to ₹ 12.75 lakh because of a standard deduction of: Press Information Bureau
a) ₹ 50,000
b) ₹ 60,000
c) ₹ 75,000
d) ₹ 1,00,000
Answer: c) ₹ 75,000
Explanation: The PIB note states that income up to ₹ 12.75 lakh is nil for salaried taxpayers after ₹ 75,000 standard deduction. 👉 (HIGHLY IMPORTANT)
Q15. Before Union Budget 2025, the NIL tax limit under the new regime (with rebate) was: Income Tax India
a) ₹ 5 lakh
b) ₹ 6 lakh
c) ₹ 7 lakh
d) ₹ 10 lakh
Answer: c) ₹ 7 lakh
Explanation: The rebate earlier gave nil tax up to ₹ 7 lakh; Budget 2025 raised it to ₹ 12 lakh.
Q16. As per Budget 2025-26, the rebate amount under Section 87A (new regime) can go up to: cleartax+1
a) ₹ 12,500
b) ₹ 25,000
c) ₹ 50,000
d) ₹ 60,000
Answer: d) ₹ 60,000
Explanation: The maximum rebate has been increased to ₹ 60,000 for incomes up to ₹ 12 lakh in the new regime. 👉 (HIGHLY IMPORTANT)
Q17. Which of the following is the correct new slab rate structure (new regime) for FY 2025-26 as per Budget 2025-26? India Budget+1
a) 0–3L Nil; 3–6L 5%; 6–9L 10%; 9–12L 15%; above 12L 30%
b) 0–4L Nil; 4–8L 5%; 8–12L 10%; 12–16L 15%; 16–20L 20%; 20–24L 25%; >24L 30%
c) 0–5L Nil; 5–10L 10%; 10–15L 20%; above 15L 30%
d) 0–2.5L Nil; 2.5–5L 5%; 5–10L 20%; above 10L 30%
Answer: b) 0–4L Nil; 4–8L 5%; 8–12L 10%; 12–16L 15%; 16–20L 20%; 20–24L 25%; >24L 30%
Explanation: Budget 2025 provides this detailed new slab structure under the new regime. 👉 (HIGHLY IMPORTANT)
Q18. Under the new slab rates of Budget 2025-26, income above which amount is taxed at 30%? India Budget+1
a) ₹ 16 lakh
b) ₹ 20 lakh
c) ₹ 24 lakh
d) ₹ 30 lakh
Answer: c) ₹ 24 lakh
Explanation: The top slab of 30% applies on income above ₹ 24 lakh under the new regime.
Q19. As per Budget 2025-26, the time limit to file an updated return has been extended from 2 years to: India Budget
a) 3 years from end of tax year
b) 4 years from end of tax year
c) 5 years from end of tax year
d) 6 years from end of tax year
Answer: b) 4 years from end of tax year
Explanation: The limit to file updated returns is extended from 2 years to 4 years to encourage voluntary compliance.
Q20. How many self-occupied house properties can now be claimed without notional rent, as per direct tax proposals in Budget 2025-26? India Budget
a) Only one
b) Two
c) Three
d) Four
Answer: b) Two
Explanation: Taxpayers are now allowed to claim annual value of two self-occupied houses as nil.
Q21. The TDS deduction limit for interest income of senior citizens (under certain provisions) has been increased from ₹ 50,000 to: India Budget
a) ₹ 60,000
b) ₹ 75,000
c) ₹ 1,00,000
d) ₹ 1,20,000
Answer: c) ₹ 1,00,000
Explanation: Budget 2025-26 doubles the threshold to ₹ 1 lakh for deduction of tax on specified interest for senior citizens.
Q22. The annual limit for TDS on rent has been increased in Budget 2025-26 from ₹ 2.40 lakh to: India Budget
a) ₹ 3.00 lakh
b) ₹ 4.80 lakh
c) ₹ 5.00 lakh
d) ₹ 6.00 lakh
Answer: d) ₹ 6.00 lakh
Explanation: TDS on rent will now apply only if annual rent exceeds ₹ 6 lakh, easing compliance for small tenants/landlords. 👉 (HIGHLY IMPORTANT)
Q23. For small charitable trusts and institutions, the registration period has been increased from 5 years to: India Budget
a) 7 years
b) 8 years
c) 10 years
d) 12 years
Answer: c) 10 years
Explanation: The period of registration is doubled to 10 years to reduce frequent renewals.
Q24. Which of the following is a key objective of personal income tax reforms in Budget 2025-26? India Budget+1
a) Increase litigation
b) Complicate slab structure
c) Provide relief to middle class and boost consumption
d) Eliminate all exemptions and deductions immediately
Answer: c) Provide relief to middle class and boost consumption
Explanation: PIB notes highlight substantial tax relief for middle class to enhance consumption and investment. 👉 (HIGHLY IMPORTANT)
Q25. The Income Tax Act, 2025 and related proposals aim to introduce which new time concept replacing “Previous Year” and “Assessment Year”? cleartax+1
a) Financial Year
b) Accounting Year
c) Tax Year
d) Compliance Year
Answer: c) Tax Year
Explanation: The new law uses “Tax Year” (1 April–31 March) to simplify understanding and remove dual year terminology.
Chapter 3: Expenditure, States, Infrastructure & Sector Measures
Q26. How much outlay has been proposed for 50-year interest-free loans to States for capital expenditure and reforms in 2025-26? Press Information Bureau+1
a) ₹ 1.00 lakh crore
b) ₹ 1.25 lakh crore
c) ₹ 1.50 lakh crore
d) ₹ 2.00 lakh crore
Answer: c) ₹ 1.50 lakh crore
Explanation: Budget 2025-26 provides ₹ 1.5 lakh crore as special 50-year interest-free loans to States for capex and reforms. 👉 (HIGHLY IMPORTANT)
Q27. Under Asset Monetization Plan 2025-30, the government aims to plough back capital of: Press Information Bureau+1
a) ₹ 5 lakh crore
b) ₹ 7.5 lakh crore
c) ₹ 10 lakh crore
d) ₹ 15 lakh crore
Answer: c) ₹ 10 lakh crore
Explanation: The second Asset Monetization Plan 2025-30 targets ₹ 10 lakh crore to fund new projects. 👉 (HIGHLY IMPORTANT)
Q28. What is the size of the Urban Challenge Fund announced to implement “Cities as Growth Hubs” and related urban initiatives? India Budget
a) ₹ 50,000 crore
b) ₹ 75,000 crore
c) ₹ 1 lakh crore
d) ₹ 1.5 lakh crore
Answer: c) ₹ 1 lakh crore
Explanation: Key Features mention an Urban Challenge Fund of ₹ 1 lakh crore for city redevelopment and water/sanitation.
Q29. SWAMIH Fund-2 announced in the Budget 2025-26 has a corpus of: India Budget
a) ₹ 10,000 crore
b) ₹ 15,000 crore
c) ₹ 20,000 crore
d) ₹ 25,000 crore
Answer: b) ₹ 15,000 crore
Explanation: SWAMIH Fund-2 will have ₹ 15,000 crore to complete about one lakh dwelling units through blended finance.
Q30. The Maritime Development Fund announced in Budget 2025-26 will have a corpus of: India Budget
a) ₹ 10,000 crore
b) ₹ 15,000 crore
c) ₹ 20,000 crore
d) ₹ 25,000 crore
Answer: d) ₹ 25,000 crore
Explanation: Maritime Development Fund will have ₹ 25,000 crore for long-term financing with up to 49% government contribution.
Q31. Under UDAN in Budget 2025-26, regional connectivity is planned to be expanded to how many new destinations over the next 10 years? India Budget
a) 60 new destinations
b) 80 new destinations
c) 100 new destinations
d) 120 new destinations
Answer: d) 120 new destinations
Explanation: UDAN is targeted to cover 120 new destinations and carry 4 crore passengers in 10 years.
Q32. How many dwelling units are targeted for expeditious completion under SWAMIH Fund-2? India Budget
a) 50,000 units
b) 75,000 units
c) 1 lakh units
d) 2 lakh units
Answer: c) 1 lakh units
Explanation: SWAMIH Fund-2 aims to complete about one lakh dwelling units.
Q33. Budget 2025-26 allocates ₹ 20,000 crore for which of the following major initiatives? India Budget
a) Rural roads programme
b) Private sector-driven Research, Development and Innovation initiative
c) Crop insurance scheme
d) Defence modernisation
Answer: b) Private sector-driven Research, Development and Innovation initiative
Explanation: ₹ 20,000 crore is earmarked for a private sector-led R&D and innovation initiative. 👉 (HIGHLY IMPORTANT)
Q34. Under Kisan Credit Card (KCC) related measures, short-term loans will be facilitated for how many beneficiaries (farmers, fishermen and dairy farmers) with enhanced limit of ₹ 5 lakh? India Budget
a) 5 crore
b) 6.5 crore
c) 7.7 crore
d) 10 crore
Answer: c) 7.7 crore
Explanation: The Key Features mention facilitating short-term loans for 7.7 crore farmers, fishermen and dairy farmers with ₹ 5 lakh limit.
Q35. The 6-year pulses mission launched in Budget 2025-26 puts special focus on which three pulses? India Budget
a) Arhar, Chana, Moong
b) Tur, Urad, Masoor
c) Urad, Chana, Rajma
d) Masoor, Moong, Kabuli Chana
Answer: b) Tur, Urad, Masoor
Explanation: The mission aims at Aatmanirbharta in pulses with focus on Tur, Urad and Masoor and climate-resilient seeds.
Q36. Budget 2025-26 revises the MSME classification. For Micro Enterprises, the revised investment limit (plant & machinery/equipment) is up to: India Budget
a) ₹ 1 crore
b) ₹ 1.5 crore
c) ₹ 2 crore
d) ₹ 2.5 crore
Answer: d) ₹ 2.5 crore
Explanation: The MSME table shows Micro enterprises’ investment limit revised from ₹ 1 crore to ₹ 2.5 crore.
Q37. For Micro Enterprises registered on the Udyam portal, the new customised Credit Cards announced in Budget 2025-26 will have a limit of: India Budget
a) ₹ 2 lakh
b) ₹ 3 lakh
c) ₹ 5 lakh
d) ₹ 10 lakh
Answer: c) ₹ 5 lakh
Explanation: Budget proposes customised credit cards with a ₹ 5 lakh limit for micro enterprises on Udyam.
Q38. The scheme for first-time entrepreneurs (including women and SC/ST) will provide term loans up to what amount over the next 5 years? India Budget
a) ₹ 50 lakh
b) ₹ 1 crore
c) ₹ 2 crore
d) ₹ 5 crore
Answer: c) ₹ 2 crore
Explanation: A new scheme will give term loans up to ₹ 2 crore to around 5 lakh first-time entrepreneurs.
Chapter 4: Financial Sector, Banking-Specific & Regulatory Reforms
Q39. As per Key Features of Budget 2025-26, the FDI limit for the insurance sector is proposed to be raised from 74% to: India Budget
a) 80%
b) 90%
c) 100%
d) 49% (no change)
Answer: c) 100%
Explanation: Budget proposes increasing FDI cap in insurance from 74% to 100% to attract more foreign capital. 👉 (HIGHLY IMPORTANT)
Q40. NaBFID (National Bank for Financing Infrastructure and Development) is tasked in Budget 2025-26 to set up which facility? India Budget
a) Deposit Insurance Fund
b) Partial Credit Enhancement Facility for corporate bonds for infrastructure
c) Asset Reconstruction Fund
d) NBFC Liquidity Support Fund
Answer: b) Partial Credit Enhancement Facility for corporate bonds for infrastructure
Explanation: NaBFID will set up a Partial Credit Enhancement Facility to deepen the bond market for infra projects.
Q41. The “Grameen Credit Score” framework in Budget 2025-26 aims to serve mainly which segment? India Budget
a) Large corporates
b) High Net Worth Individuals
c) SHG members and rural borrowers
d) Foreign portfolio investors
Answer: c) SHG members and rural borrowers
Explanation: The Grameen Credit Score is designed to help assess creditworthiness of SHG members and rural population.
Q42. A revamped Central KYC registry is proposed to be rolled out in which year as per Budget 2025-26? India Budget
a) 2024
b) 2025
c) 2026
d) 2027
Answer: b) 2025
Explanation: The budget states that a revamped Central KYC registry will be rolled out in 2025, aiding easier KYC across entities. 👉 (HIGHLY IMPORTANT)
Q43. Budget 2025-26 proposes to revamp PM SVANidhi with which of the following key features? India Budget
a) Only grant-based support, no loans
b) Enhanced loans from banks, UPI-linked credit cards, capacity building
c) Cash subsidies only for vendors
d) Restrict scheme to rural areas
Answer: b) Enhanced loans from banks, UPI-linked credit cards, capacity building
Explanation: PM SVANidhi will be upgraded with higher credit, UPI-linked cards and skill support for street vendors.
Q44. “BharatTradeNet (BTN)” announced in the Budget 2025-26 is best described as: India Budget
a) A retail UPI app for citizens
b) A digital public infrastructure for trade documentation and financing solutions
c) A payment bank for exports
d) A new RTGS system
Answer: b) A digital public infrastructure for trade documentation and financing solutions
Explanation: BTN is a unified digital platform for international trade documents and trade finance, integrating with global supply chains.
Q45. The Export Promotion Mission under Budget 2025-26 focuses on all of the following EXCEPT: India Budget
a) Easy access to export credit
b) Cross-border factoring support
c) Support to MSMEs on non-tariff measures
d) Free foreign exchange for all tourists
Answer: d) Free foreign exchange for all tourists
Explanation: Export Promotion Mission targets export credit, factoring and MSME support, not free forex for tourists.
Q46. Which of the following bodies will use a strengthened mechanism to evaluate impact of current financial regulations, as mentioned in Budget 2025-26? India Budget
a) GST Council
b) Financial Stability and Development Council (FSDC)
c) SEBI Advisory Council
d) Finance Commission
Answer: b) Financial Stability and Development Council (FSDC)
Explanation: The Key Features mention FSDC mechanism to review regulatory impact and responsiveness of financial sector rules.
Q47. “Jan Vishwas Bill 2.0” announced in Budget 2025-26 aims to: India Budget
a) Increase criminal penalties in economic laws
b) Decriminalize more than 100 provisions in various laws
c) Introduce new banking offences
d) Abolish all monetary penalties
Answer: b) Decriminalize more than 100 provisions in various laws
Explanation: Jan Vishwas Bill 2.0 is meant to reduce criminal provisions and promote ease of doing business. 👉 (HIGHLY IMPORTANT)
Q48. Under indirect tax proposals, Budget 2025-26 seeks to rationalise customs tariff structure for industrial goods mainly by: India Budget+1
a) Adding more surcharge and cess
b) Introducing many new tariff rates
c) Removing 7 tariff rates and keeping limited tariff slabs with at most one cess
d) Eliminating customs duty fully
Answer: c) Removing 7 tariff rates and keeping limited tariff slabs with at most one cess
Explanation: Customs structure is simplified by removing 7 tariff rates and limiting cess/surcharge to improve trade facilitation.
Q49. Which sector is specifically mentioned for extension of the tonnage tax scheme in Budget 2025-26? India Budget
a) International airlines
b) Inland vessels
c) Telecom operators
d) Large IT companies
Answer: b) Inland vessels
Explanation: The budget talks about extending the tonnage tax scheme to inland vessels as part of tax certainty for shipping-related activities.
Q50. Under credit guarantee enhancements shown in the MSME section of Budget 2025-26, the credit guarantee cover for MSEs is proposed to be increased from ₹ 5 crore to: India Budget
a) ₹ 7 crore
b) ₹ 8 crore
c) ₹ 10 crore
d) ₹ 12 crore
Answer: c) ₹ 10 crore
Explanation: The MSME table in the Key Features shows credit guarantee cover for MSEs revised from ₹ 5 crore to ₹ 10 crore to improve credit flow. 👉 (HIGHLY IMPORTANT)