Union Budget 2026-27: Mid-Term Economic Review
The Finance Ministry released a mid-term review of the 2026-27 budget, highlighting a fiscal deficit of 4.2% and robust GDP growth.
2-Minute Summary (TL;DR)
- Fiscal deficit contained at 4.2% of GDP.
- Projected GDP growth rate for FY27 is 7.5%.
- Capital expenditure increased by 15% year-on-year.
- Tax collections exceeded initial budgetary estimates.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| UPSC / State PCS | High | 10–20 | Economy is a core UPSC subject. Economic Survey, budget, and policy changes are heavily tested. |
| Banking (IBPS / SBI) | Very High | 6–10 | RBI policy, inflation, CRR/SLR, monetary committee decisions — banking exams test the full spectrum. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section. |
What to Memorize from This Topic
- Key budget figures: fiscal deficit %, GDP growth projection, key scheme allocations
- RBI rate decisions: Repo rate, CRR, SLR, Reverse Repo — current values
- Rankings: India's position in ease of doing business, hunger index, HDI
- Abbreviations: FRBM, NBFC, MPC, PMGSY, PMGKAY — full forms and purpose
- Trade data: import-export balance, major trading partners
Practice Questions
Q1. What is the projected fiscal deficit for FY27 according to the mid-term review?
- 4.0%
- 4.2%
- 4.5%
- 5.0%
Explanation: The mid-term review highlights that the fiscal deficit has been contained at 4.2% of the GDP.
Q2. Which sector saw a 15% increase in expenditure according to the review?
- Social Welfare
- Capital Expenditure
- Defense
- Agriculture
Explanation: Capital expenditure grew by 15% due to investments in infrastructure projects like railways and highways.
How to Prepare Economy & Finance for Government Exams
Track current Repo Rate, Inflation rate, and GDP growth. These three numbers appear in almost every banking exam.
Keep a running note of new schemes with their ministry, launch date, and target beneficiary group.
Focus on the Economic Survey and Union Budget highlights — these single documents generate dozens of exam questions.
Related Current Affairs
Test Your Knowledge on Today's Current Affairs
10 questions · 10 minutes · Based on today's GK updates. See how prepared you really are.
Start Daily Quiz