SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Exam-Level Drill

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SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Exam-Level Drill – 12 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.  
One-line fact recallAs per PIB (1 February 2026), the Government's debt-to-GDP ratio is estimated at 55.6% in BE 2026-27 and the target is:

Correct Answer: D [50 ± 1 per cent by 2030-31]

Explanation:

PIB release title: on track to reach debt-to-GDP of 50±1% by 2030-31.

2.  
The FRBM Act was amended in 2018 to adopt debt as the main anchor. The target for the Central Government's debt was:

Correct Answer: B [40% of GDP by 2024-25]

Explanation:

2018: Central Government debt 40%, general government debt 60% by 2024-25; fiscal deficit 3% by 31 March 2021.

3.  
In BE 2026-27 (₹ crore), total expenditure is 53,47,315 and borrowings and other liabilities 16,95,768. Roughly what share of expenditure is financed by borrowing?

Correct Answer: A [About 32%]

Explanation:

16,95,768 ÷ 53,47,315 ≈ 31.7%.

4.  
BE 2026-27: interest payments ₹ 14,03,972 crore and revenue receipts ₹ 35,33,150 crore. Interest takes about what share of revenue receipts?

Correct Answer: C [About 40%]

Explanation:

14,03,972 ÷ 35,33,150 ≈ 39.7%.

5.  
Statements laid before Parliament with the Budget under Section 3 of the FRBM Act include:

Correct Answer: C [Macro-Economic Framework Statement and Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement]

Explanation:

Key to Budget Documents 2026: both statements are presented under Section 3 of the FRBM Act.

6.  
One-line fact recallThe Indian rupee was made convertible on the current account in:

Correct Answer: A [August 1994]

Explanation:

Current-account convertibility (IMF Article VIII status) from August 1994; market-determined exchange rate from March 1993.

7.  
As per RBI data released on 1 September 2026, India's current account deficit for Q1 (April–June) 2026-27 was:

Correct Answer: D [0.5% of GDP (US$ 4.2 billion)]

Explanation:

CAD US$ 4.2 billion, 0.5% of GDP, in Q1:2026-27 (0.4% of GDP a year earlier) (as on 20-10-2026, RBI).

8.  
Assertion–Reason
A: Effective revenue deficit is smaller than revenue deficit.
R: Grants given for creation of capital assets are subtracted from revenue deficit to get ERD.

Correct Answer: B [Both A and R are true and R explains A]

Explanation:

ERD = RD − grants for capital assets (positive grants make ERD smaller).

9.  
Match the followingMatch the BoP item with its account:
P. Software services exports Q. External commercial borrowings R. Gifts from relatives abroad
1. Capital (financial) account 2. Current account – services 3. Current account – transfers

Correct Answer: D [P-2, Q-1, R-3]

Explanation:

Services and transfers are invisibles in the current account; ECB is a capital flow.

10.  
Debt-to-GDP 70%; interest rate 9%; nominal growth 12%; primary deficit zero. The debt ratio next year is about:

Correct Answer: B [68.1%]

Explanation:

Answer: 68.1%. 0.70 × 1.09/1.12 = 0.6813.

11.  
Fiscal deficit is ₹ 16,95,768 crore and it is 4.3% of GDP (BE 2026-27). The implied nominal GDP is about:

Correct Answer: C [₹ 394 lakh crore]

Explanation:

16,95,768 ÷ 0.043 ≈ 3,94,36,000 crore ≈ 394 lakh crore.

12.  
Reverse questionA government has fiscal deficit ₹ 840 crore and primary deficit ₹ 210 crore. Interest payments are:

Correct Answer: A [₹ 630 crore]

Explanation:

Answer: ₹ 630 crore. Interest = FD − PD = 630.

➤ 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)
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