SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 3 · Challenge
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Overall deficit 12 − 20 − 1 = −9 is met from reserves.
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SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 3 · Challenge – 8 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.
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1.
Budget at a Glance 2026-27 (BE, ₹ crore): revenue expenditure 41,25,494 and revenue receipts 35,33,150. The revenue deficit is:
Correct Answer: B [₹ 5,92,344 crore]
Explanation:
41,25,494 − 35,33,150 = 5,92,344 (1.5% of GDP).
2.
Same document (BE 2026-27): fiscal deficit ₹ 16,95,768 crore; interest payments ₹ 14,03,972 crore. Primary deficit is:
Correct Answer: A [₹ 2,91,796 crore]
Explanation:
16,95,768 − 14,03,972 = 2,91,796 (0.7% of GDP).
3.
Same document, RE 2025-26 column: revenue deficit ₹ 5,26,764 crore and effective revenue deficit ₹ 2,18,613 crore. Grants for creation of capital assets are:
Correct Answer: C [₹ 3,08,151 crore]
Explanation:
ERD = RD − grants for capital assets → 5,26,764 − 2,18,613 = 3,08,151.
4.
True/false countHow many statements are true?
(i) Recovery of loans is a non-debt capital receipt.
(ii) Grants to States are capital expenditure even if States build schools with them.
(iii) Fiscal deficit equals the government's net borrowing requirement.
(iv) Dividends from PSUs are revenue receipts.
(i) Recovery of loans is a non-debt capital receipt.
(ii) Grants to States are capital expenditure even if States build schools with them.
(iii) Fiscal deficit equals the government's net borrowing requirement.
(iv) Dividends from PSUs are revenue receipts.
Correct Answer: D [Three]
Explanation:
(ii) false – in the Union accounts such grants are revenue expenditure (hence the idea of 'effective' revenue deficit).
5.
Debt-to-GDP 50%; nominal interest rate 7%; nominal GDP growth 11%; primary deficit 1% of GDP. Next year's debt-to-GDP is about:
Correct Answer: A [49.1%]
Explanation:
(0.50 × 1.07 + 0.01)/1.11 = 0.4910.
6.
Arrange in orderArrange the deficits of the Budget 2026-27 (BE, % of GDP) from largest to smallest:
1. Revenue deficit 2. Fiscal deficit 3. Primary deficit 4. Effective revenue deficit
1. Revenue deficit 2. Fiscal deficit 3. Primary deficit 4. Effective revenue deficit
Correct Answer: D [2, 1, 3, 4]
Explanation:
Answer: 2, 1, 3, 4. 4.3 > 1.5 > 0.7 > 0.3.
7.
If a government has a primary surplus (primary deficit below zero), then:
Correct Answer: C [Fiscal deficit is less than interest payments]
Explanation:
FD = PD + interest; with PD < 0, FD < interest.
8.
Imaginary BoP: CA balance +12, capital account −20, errors and omissions −1. Foreign exchange reserves:
Correct Answer: B [Fall by 9]
Explanation:
Overall deficit 12 − 20 − 1 = −9 is met from reserves.
➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics
📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
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