Budget, Fiscal Policy & Taxation Questions with Solutions

This topic covers the Union Budget and fiscal policy: revenue and capital budgets, types of deficits (fiscal, revenue and primary), the FRBM Act, direct and indirect taxes, the Goods and Services Tax (GST) and the GST Council, and the role of the Finance Commission. Common questions ask how each deficit is defined, which article covers the annual financial statement (Article 112), which taxes GST replaced, and the difference between direct and indirect taxes. GST was introduced on 1 July 2017 through the 101st Constitutional Amendment. Budget figures change every year, so check recent numbers in current affairs. Practise the budget, fiscal policy and taxation questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.