Union Budget 2026: Mid-Year Review Shows 15% Increase in Capital Expenditure
A mid-year review of the Union Budget 2026 reveals a significant 15% surge in capital expenditure, focusing on infrastructure and green energy.
Key Points for Quick Revision
- 15% increase in capital expenditure reported.
- Fiscal deficit target maintained at 4.2% of GDP.
- Focus on high-speed rail and renewable energy.
- Tax collections exceeded initial budget 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. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section. |
| State PCS / PSC | High | 4–8 | State budget, MSME, agriculture policy, and banking data are common in state PCS papers. |
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 fiscal deficit target mentioned in the mid-year budget review?
- 3.5%
- 4.2%
- 5.0%
- 5.5%
Explanation: The government aims to maintain a fiscal deficit target of 4.2% of GDP.
Q2. Which framework is credited with streamlining infrastructure project approvals?
- PM-Kisan
- Gati Shakti
- Digital India
- Make in India
Explanation: The Gati Shakti framework is used to streamline and integrate infrastructure planning.
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.