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MCQs 2026

1171.
The achievement of a lower fiscal deficit underscores the government's commitment to:
A Fiscal imprudence and unsustainable growth
B Fiscal prudence and sustainable economic growth
C Increased government debt and short-term stimulus
D Reduced investment in essential services
1172.
What is the primary implication of 'tax buoyancy'?
A Tax revenues are not increasing with economic growth
B Tax revenues are increasing proportionally or more than proportionally with economic growth
C Tax rates are being reduced
D Tax collection efficiency is declining
1173.
The government's focus on 'rationalizing subsidies' means:
A Increasing the amount of subsidies provided
B Making subsidies more efficient and targeted
C Eliminating all subsidies
D Increasing subsidies for non-essential goods
1174.
What does 'fiscal consolidation' refer to?
A Increasing government spending without regard to revenue
B Reducing the government's budget deficit and debt
C Increasing taxes to fund new government programs
D Borrowing more money to stimulate the economy
1175.
The RBI has acknowledged the fiscal improvements, which contribute to:
A A more volatile financial environment
B A more stable financial environment
C Increased uncertainty in the markets
D Reduced investor confidence
1176.
A lower fiscal deficit enhances India's:
A Macroeconomic instability and creditworthiness
B Macroeconomic stability and creditworthiness
C Dependence on foreign aid
D Vulnerability to external shocks
1177.
What is a potential consequence of a lower fiscal deficit on interest rates?
A Increased pressure on interest rates
B Easing pressure on interest rates
C No impact on interest rates
D Guaranteed increase in interest rates
1178.
Which factors contributed to the narrowing fiscal deficit?
A Declining revenue growth and increased expenditure
B Robust revenue growth and prudent expenditure management
C Increased subsidies and reduced tax buoyancy
D Higher government borrowing and reduced economic activity
1179.
What does a narrowing fiscal deficit indicate?
A Increased government borrowing requirements
B Improved fiscal discipline and effective management of government finances
C A decline in economic activity
D Rising inflation rates
1180.
What was India's fiscal deficit as a percentage of GDP in FY 2025-26?
A 4.5%
B 5.1%
C 5.8%
D 6.0%