Change set

Pick exam & year, then Go.

Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q23 (CAPF/2026) Economy › Government Finance & Budget

Consider the following statements in the context of the Union Budget, 2026-27 :
1. The Gross Tax Revenue of the Central Government is estimated to be 11.2 percent of the GDP.
2. The Direct Tax Revenue of the Central Government is less than its Indirect Tax Revenue.
3. The Effective Capital Expenditure is lower than the Capital Expenditure.
4. The tariff rate on all dutiable goods imported for personal use will be reduced from 20 percent to 10 percent.
Which of the statements given above is/are correct?

Result
Your answer: —  ·  Correct: D

Explanation

Based on the Union Budget 2026-27 documents and official PIB releases:

  • Statement 1 is correct: The Gross Tax Revenue (GTR) for the financial year 2026-27 (Budget Estimates) is estimated to be 11.2% of the GDP.
  • Statement 2 is incorrect: In the 2026-27 Budget, Direct Tax revenue is estimated at 6.9% of GDP, while Indirect Tax revenue is estimated at 4.3% of GDP. Thus, Direct Tax revenue is higher, not less.
  • Statement 3 is incorrect: Effective Capital Expenditure is defined as the sum of Capital Expenditure and Grants-in-Aid for the creation of capital assets. Consequently, it is higher (₹17.15 lakh crore) than the Capital Expenditure (₹12.22 lakh crore).
  • Statement 4 is correct: To rationalize the customs duty structure and provide relief for personal imports, the tariff rate on all dutiable goods imported for personal use was reduced from 20% to 10%.
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
40%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-II · 2025 · Q76 Relevance score: 4.10

Consider the following statements about Union Government's Expenditure on revenue account and effective capital expenditure : 1. Effective capital expenditure as percentage of GDP has increased from 2020 - 21 to 2023 - 24. 2. Expenditure on revenue account as percentage of GDP has increased from 2020 - 21 to 2023 - 24. Which of the statements given above is/are correct ?

IAS · 2002 · Q87 Relevance score: 2.15

With reference to the Indian Public Finance consider the following statements: 1. External liabilities reported in Union Budget are based on historical exchange rates 2. The continued high borrowing has kept the real interest rates high in the economy 3. The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect to private investments. 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct ?

IAS · 2015 · Q60 Relevance score: 2.07

With reference to the Union Government, consider the following statements : 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. Which of the statements given above is/are correct?

CDS-II · 2020 · Q1 Relevance score: 1.89

As per the Budget Estimates of 2019-20, the following are some of the important sources of tax receipts for the Union Government: 1. Corporation Tax 2. Taxes on Income other than Corporation Tax 3. Goods and Services Tax 4. Union Excise Duties Which one of the following is the correct descending order of the aforesaid tax receipts as a· percentage of GDP?

CAPF · 2024 · Q32 Relevance score: 1.74

Arrange the following sources of revenue of the Central Government in ascending manner in terms of percent- age contribution to the total revenues of the Central Government in 2023-24