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Daily-mcqs 03 Feb 2026

Current Affairs MCQs for UPSC & State PSC Exams 03 Feb 2026

Current Affairs MCQs for UPSC & State PSC Exams

Q1:

With reference to the Union Budget 2026–27, consider the following statements:

1.   The fiscal deficit for FY 2026–27 is projected at 4.3% of GDP.

2.   The debt-to-GDP ratio is estimated to increase compared to Revised Estimates of 2025–26.

3.   Gross market borrowings are estimated at ₹17.2 lakh crore.

Which of the statements given above are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: C

Explanation:

Statement 1: Correct — Fiscal deficit is projected at 4.3% of GDP.

Statement 2: Incorrect — Debt-to-GDP ratio declines from 56.1% (RE 2025–26) to 55.6%.

Statement 3: Correct — Gross market borrowings are ₹17.2 lakh crore.

Q2:

The three “Kartavyas” articulated in Union Budget 2026–27 include:

1.   Accelerating and sustaining economic growth

2.   Ensuring cooperative federalism

3.   Fulfilling aspirations and building capacities

4.   Ensuring inclusive growth

Select the correct answer using the code below:

A: 1 and 2 only

B: 1,3 and 4 only

C: 1, 2 and 3 only

D: 1, 2, 3 and 4

Show

Answer: B

Explanation:

The three Kartavyas are:

Growth acceleration

Aspirations & capacity building

Inclusive growth (Sabka Sath, Sabka Vikas)
Cooperative federalism is not listed as a Kartavya here.

Q3:

With reference to capital expenditure (capex) in Budget 2026–27, consider the following statements:

1. Capex is increased to ₹12.2 lakh crore.

2. Capex constitutes about 4.4% of GDP.

Which of the statements given above are correct?

A: 1 only

B: 2 only

C: Both 1 and 2

D: None

Show

Answer: C

Explanation:

Statement 1 is correct: In the Union Budget 2026–27 increase the capital expenditure (capex) to ₹12.2 lakh crore (or ₹12.22 lakh crore). This marks an increase of approximately 9% over the previous year's allocation.

Statement 2 is correct: The proposed capex of ₹12.2 lakh crore constitutes about 4.4% of the GDP for the fiscal year 2026–27. This is noted as one of the highest levels of public capital expenditure as a percentage of GDP in recent decades.

Q4:

The Income Tax Act, 2025 announced in Budget 2026–27 aims to:

1.   Replace the six-decade-old Income Tax Act

2.   Reduce litigation and compliance burden

3.   Change existing income tax slabs substantially

Which of the above are correct?

A: 1 and 2 only

B: 2 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

The Income Tax Act, 2025, announced in Budget 2026–27 to be effective from April 1, 2026, replaces the 1961 Act to simplify laws and reduce litigation. While it streamlines compliance, it does not substantively change tax slabs for FY 2026-27, making statements 1 and 2 correct.

Q5:

Reduction in Tax Collected at Source (TCS) to 2% under the Liberalised Remittance Scheme applies to:

1.   Overseas tour packages

2.   Education remittances

3.   Medical remittances

4.   Capital account investments abroad

Select the correct answer:

A: 1 and 2 only

B: 1,3 and 4 only

C: 1, 2 and 3 only

D: 1, 2, 3 and 4

Show

Answer: C

Explanation:

As per the Union Budget 2026 announcement, the provision to reduce TCS to 2% under the Liberalised Remittance Scheme (LRS) specifically applies to—

· Overseas tour packages

· Education remittances

· Medical remittances

However, this concession does not apply to capital account investments abroad (such as purchasing shares or property), which continue to be subject to 20% TCS.

Q6:

Which of the following infrastructure initiatives were announced in Budget 2026–27?

1.   Seven new high-speed rail corridors

2.   Operationalisation of 20 national waterways

3.   Bharat Mala Phase III exclusively for border roads

Select the correct answer:

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Seven high-speed rail corridors were announced in Union Budget 2026–27 to act as growth connectors (e.g., Mumbai–Pune, Delhi–Varanasi, Hyderabad–Bengaluru).

The Budget proposed operationalisation of 20 national waterways over five years to enhance multimodal logistics and reduce transport costs.

Bharat Mala Phase III (border roads) was not announced in Budget 2026–27. The focus remained on connectivity for Tier II/III cities and logistics efficiency, not a border-specific phase.

Q7:

Which of the following are part of manufacturing and strategic industry initiatives in Budget 2026–27?

1.   Biopharma SHAKTI Programme

2.   Rare Earth Corridors

3.   National Textile Mission 2.0

Select the correct answer:

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Statement 1 is correct: Biopharma SHAKTI Programme with an outlay of ₹10,000 crore was announced to promote domestic biologics and biosimilars manufacturing.

Statement 2 is correct: Rare Earth Corridors were proposed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to support rare earth mining, processing and manufacturing.

Statement 3 is incorrect: National Textile Mission 2.0 was not announced; instead, an Integrated Textile Programme with multiple components was proposed.