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MCQs 2026

1191.
What does 'fiscal consolidation' refer to in this context?
A Increasing government debt
B Reducing the fiscal deficit and public debt
C Increasing government spending
D Raising taxes significantly
1192.
The reduction in fiscal deficit is a sign of:
A Fiscal indiscipline
B Fiscal consolidation and responsible economic management
C Increased government debt
D Reduced economic growth
1193.
What is a potential challenge to achieving the fiscal deficit targets?
A Stable global economic conditions
B Global economic uncertainties and potential revenue shortfalls
C Increased tax compliance
D Reduced government spending
1194.
The government remains committed to adhering to the:
A Fiscal deficit roadmap
B Increased borrowing plan
C Revenue expenditure increase
D Disinvestment halt
1195.
A lower fiscal deficit enhances India's:
A Credit risk
B Creditworthiness
C Dependence on foreign aid
D Fiscal vulnerability
1196.
Successful disinvestment of public sector undertakings (PSUs) contributes to:
A Reducing government revenues
B Bolstering government revenues
C Increasing fiscal deficit
D Decreasing private investment
1197.
What is a benefit of a lower fiscal deficit for the economy?
A Increased government borrowing requirements
B Reduced pressure on interest rates
C Decreased private investment
D Lowered creditworthiness
1198.
The government's expenditure management strategy prioritizes:
A Increasing non-essential revenue expenditure
B Capital expenditure for infrastructure development
C Reducing tax compliance
D Disinvestment of all PSUs
1199.
What are the key drivers for the reduction in the fiscal deficit?
A Reduced economic activity and increased expenditure
B Robust revenue growth and prudent expenditure management
C Decreased tax compliance and increased borrowing
D Disinvestment of profitable PSUs
1200.
What is the projected trend for India's fiscal deficit in FY 2025-26?
A Increase
B Narrowing
C Stagnation
D Unpredictable