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50 Important Budget Questions [2021] | Most Expected MCQs

Tripti Mishra

The Finance Minister, Smt. Nirmala Sitharaman presented the Union Budget for the fiscal year 2021-22 in the Parliament on 1 February 2021 and here we are with the Important Union Budget Questions 2021.

Important Union Budget Questions are very important for the upcoming competitive examination and knowing all the important questions and their correct answers is a must, as it will help you in scoring good marks in the examination.

To help you in your exam preparation we have brought you 50 Most Expected MCQs on Union Budget 2021-22. Read all the questions mentioned below and first try to solve on your own and then go for correct answers. Want to Test Your budget knowledge? Test Here

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Union budget 2021 facts and figures will be extremely important for all the upcoming exams in 2021. Check the key highlights of Budget 2021-22 and make notes for revision.

50 Important Budget Questions [2021]

Expected Important Union Budget Questions

Q1) Who presents Budget in Parliament?

  1. Prime Minister
  2. Finance Minister
  3. Home Minister
  4. President of India
  5. Defence Minister

Correct Answer: “2”

Q2) How many times Nirmala Sitharaman presented the budget in parliament?

  1. 5
  2. 1
  3. 3
  4. 4
  5. 2

Correct Answer: “3”

Q3) Who presented India’s first-ever budget?

  1. James Wilson
  2. Jawaharlal Nehru
  3. Lord Mountbatten
  4. C Rajagopalachari
  5. None of the above

Correct Answer: “1”

Q4) Budget 2021-22 proposals to rest on six pillars. Which of the following is not among them?

  1. Health & well being
  2. Minimum Government, Maximum Governance
  3. Innovation and R&D
  4. Inclusive Development for Aspirational India
  5. Agricultural Development

Correct Answer: “5”

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Q5) What is the total budget outlay for health & well being?

  1. 3.21 lakh crore
  2. 2.23 lakh crore
  3. 5.06 lakh crore
  4. 1.89 lakh crore
  5. 4.35 lakh crore

Correct Answer: “2”

Q6) According to the budget, how much amount is allocated for Covid Vaccine?

  1. 20,000 crore
  2. 15,000 crore
  3. 35,000 crore
  4. 30,000 crore
  5. 25,000 crore

Correct Answer: “3”

Q7) How much amount is allocated for PM Atmanirbhar Swasth Bharat Yojana?

  1. 64,180 crore
  2. 89,634 crore
  3. 70,000 crore
  4. 65,000 crore
  5. 72,237 crore

Correct Answer: “1”

Q8) In Union Budget 2021, how much amount is allocated for Railways?

  1. 1,00,000 crore
  2. 3,25,000 crore
  3. 1,10,055 crore
  4. 2,30,345 crore
  5. 30,55,000 crore

Correct Answer: “3”

Q9) A national rail plan has been prepared by Indian Railways for India. The plan is to create a future-ready railway system by

  1. 2030
  2. 2025
  3. 2035
  4. 2040
  5. 2050

Correct Answer: “1”

Q10) Ujjawala Scheme has been extended to how many more districts?

  1. 150
  2. 110
  3. 120
  4. 160
  5. 100

Correct Answer: “5”

Q11) How much amount is allocated for tea workers in Assam & West Bengal?

  1. 2000 crore
  2. 1000 crore
  3. 3000 crore
  4. 2500 crore
  5. 1500 crore

Correct Answer: “2”

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Q12) How much custom duty on cotton and auto parts increased respectively?

  1. 20% & 10%
  2. 10% & 25%
  3. 10% & 15%
  4. 25% & 30%
  5. 15% & 20%

Correct Answer: “3”

Q13) According to Union Budget 2021, gross borrowing from the market for the next year would be around

  1. 12 lakh crore
  2. 15 lakh crore
  3. 10 lakh crore
  4. 16 lakh crore
  5. 13 lakh crore

Correct Answer: “1”

Q14) The forthcoming census would be the first digital census in the history of India. How much amount is allocated for this in 2021-22?

  1. 2,654 crore
  2. 4,973 crore
  3. 2,872 crore
  4. 3,768 crore
  5. 4,675 crore

Correct Answer: “4”

Q15) How much custom duty on solar lantern has been reduced?

  1. 4%
  2. 7%
  3. 6%
  4. 5%
  5. 3%

Correct Answer: “4”

Q16) Which company’s IPO will be launched in 2021-22 as a part of the Government’s disinvestment strategy?

  1. IDBI
  2. LIC
  3. Air India
  4. SBI
  5. IOCL

Correct Answer: “2”

Q17) As per Union Budget 2021, the fiscal deficit is estimated to be how much percent of GDP?

  1. 9.5%
  2. 7.4%
  3. 8%
  4. 8.9%
  5. 7.8%

Correct Answer: “1”

Q18) Union Budget for 2020-21 announced an increase in Foreign Direct Investment (FDI) limit in insurance from 49% to ________.

  1. 71%
  2. 72%
  3. 73%
  4. 74%
  5. 75%

Correct Answer: “4”

Q19) Budget for 2021-22 announced voluntary vehicle scrapping policy to phase out old and polluting vehicles. After how many years fitness of commercial vehicles will be checked for the same?

  1. 20
  2. 10
  3. 15
  4. 12
  5. 8

Correct Answer: “3”

Q20) In Budget 2021, National Infrastructure Pipeline was expanded to cover 7400 projects. What is the capital expenditure announced to fund the same?

  1. Rs 2.54 lakh crore
  2. Rs 3.54 lakh crore
  3. Rs 4.54 lakh crore
  4. Rs 5.54 lakh crore
  5. Rs 6.54 lakh crore

Correct Answer: “4”

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Q21) How many mega-investment textile parks will be established over 3 years?

  1. 10
  2. 5
  3. 7
  4. 9
  5. 13

Correct Answer: “3”

Q22) In which state, multi a seaweed park will be setup?

  1. Chhattisgarh
  2. Tamil Nadu
  3. Punjab
  4. Haryana
  5. Telangana

Correct Answer: “2”

Q23) How much amount has been allocated for roads, transport, and highways?

  1. 2.18 lakh crore
  2. 3.18 lakh crore
  3. 5.18 lakh crore
  4. 4.18 lakh crore
  5. 1.18 lakh crore

Correct Answer: “5”

Q24) FM Nirmala Sitharaman proposes to setup an ARC for NPA Management. What does ‘R’ refers to in ARC?

  1. Recapitalization
  2. Retail
  3. Reconstruction
  4. Reforms
  5. Rupee-denominated

Correct Answer: “3”

Q25) How much amount is allocated for PSB recapitalization?

  1. 10,000 crore
  2. 20,000 crore
  3. 30,000 crore
  4. 40,000 crore
  5. 50,000 crore

Correct Answer: “2”

Q26) How much amount was paid to farmers for wheat procurement in 2020-21?

  1. 60,000 crore
  2. 85,000 crore
  3. 70,000 crore
  4. 75,000 crore
  5. 80,000 crore

Correct Answer: “4”

Q27) What is the disinvestment target for FY22?

  1. 1.75 lakh crore
  2. 1.60 lakh crore
  3. 2 lakh crore
  4. 1.90 lakh crore
  5. 1.85 lakh crore

Correct Answer: “1”

Q28) FM Nirmala Sitharaman announced to protect whom from double taxation in Union Budget 2021?

  1. Indian Citizens
  2. Foreigners
  3. NRIs
  4. All of the above
  5. None of the above

Correct Answer: “3”

Q29) As per Union Budget 2021, how many fishing hubs to be developed?

  1. 8
  2. 5
  3. 3
  4. 7
  5. 6

Correct Answer: “5”

Q30) How many Sainik schools will be setup in partnership with private schools, NGOs and states?

  1. 75
  2. 100
  3. 50
  4. 125
  5. 80

Correct Answer: “2”

Q31) As per the budget, central university to be set up in which of the following state/UT?

  1. Kerala
  2. J&K
  3. Tamil Nadu
  4. Ladakh
  5. Karnataka

Correct Answer: “4”

Q32) How much amount is allocated for Jal Jeevan Mission over 5 years?

  1. 3.45 lakh crore
  2. 1.98 lakh crore
  3. 2.87 lakh crore
  4. 3.79 lakh crore
  5. 2.34 lakh crore

Correct Answer: “2”

Q33) How much amount is allocated for MSME this year?

  1. 15,700 crore
  2. 16,245 crore
  3. 14,500 crore
  4. 16,800 crore
  5. 17,400 crore

Correct Answer: “1”

Q34) As per Union Budget 2021, how many schools to be quantitatively strengthened under NEP (National Education Policy)?

  1. 20,000
  2. 10,000
  3. 25,000
  4. 15,000
  5. 30,000

Correct Answer: “4”

Q35) The re-opening time limit for direct tax assessment has been reduced to how many years from the current 6 years?

  1. 2 years
  2. 4 years
  3. 1 year
  4. 5 years
  5. 3 years

Correct Answer: “5”

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Q36) How much amount is allocated for Urban Swachh Bharat Mission 2.0 over 5 years?

  1. 1,00,000 crore
  2. 1,41,678 crore
  3. 2,24,300 crore
  4. 1,21,264 crore
  5. 2,53,000 crore

Correct Answer: “2”

Q37) As per Union Budget 2021, how many roads have been constructed in Bharatmala Pariyojana so far?

  1. 4000 km
  2. 4800 km
  3. 2600 km
  4. 2800 km
  5. 3800 km

Correct Answer: “5”

Q38) FM Nirmala Sitharaman announced setting up of a DFI. What does ‘F’ refers to in DFI?

  1. Financial
  2. Finance
  3. Funds
  4. Federal
  5. Foreign

Correct Answer: “1”

Q39) As per the budget, the government aims to reach a fiscal deficit below 4.5% by

  1. FY24-25
  2. FY25-26
  3. FY26-27
  4. FY27-28
  5. FY28-29

Correct Answer: “2”

Q40) What is the age limit for senior citizens who are abolished from the need to file IT returns?

  1. Above 65 years
  2. Above 70 years
  3. Above 60 years
  4. Above 75 years
  5. Above 80 years

Correct Answer: “4”

Q41) As per the budget, how much agri infra cess has been imposed on alcoholic beverages?

  1. 75%
  2. 60%
  3. 80%
  4. 90%
  5. 100%

Correct Answer: “5”

Q42) How much amount is allocated for the 60th Goa Liberation anniversary?

  1. 300 crore
  2. 200 crore
  3. 400 crore
  4. 500 crore
  5. 100 crore

Correct Answer: “1”

Q43) As per the budget 2021, total expenditure pegged for FY22?

  1. 30.83 lakh crore
  2. 31.83 lakh crore
  3. 32.83 lakh crore
  4. 33.83 lakh crore
  5. 34.83 lakh crore

Correct Answer: “5”

Q44) As per the budget, total capital expenditure pegged for FY22?

  1. 3.54 lakh crore
  2. 5.54 lakh crore
  3. 6.54 lakh crore
  4. 4.54 lakh crore
  5. 1.54 lakh crore

Correct Answer: “2”

Q45) As per the budget, how many farmers are registered on e-NAM markets?

  1. 2 crore
  2. 1.68 crore
  3. 2.35 crore
  4. 2.86 crore
  5. 1 crore

Correct Answer: “2”

Q46) As per the budget, which of the following has been designated as a regulator for gold exchanges?

  1. RBI
  2. SEBI
  3. SIDBI
  4. FMC
  5. NHB

Correct Answer: “2”

Q47) As per the budget, 1.97 lakh crore is allocated in the next 5 years for the PLI scheme in 13 sectors to create and nurture manufacturing global champions for Atmanirbhar Bharat. What does ‘L’ refers to in PLI?

  1. Linked
  2. Leverage
  3. Lease
  4. Ledger
  5. Legal

Correct Answer: “1”

Q48) How much amount is allocated for the creation of the National Research Foundation (NRF) over 5 years?

  1. 10,000 crore
  2. 20,000 crore
  3. 30,000 crore
  4. 40,000 crore
  5. 50,000 crore

Correct Answer: “5”

Q49) How much amount is allocated for the agriculture & rural sector for FY21-22?

  1. 16.5 lakh crore
  2. 15 lakh crore
  3. 17.5 lakh crore
  4. 14 lakh crore
  5. 17 lakh crore

Correct Answer: “1”

Q50) As per budget, broad gauge to be 100% electrified by

  1. December 2022
  2. December 2023
  3. December 2024
  4. December 2025
  5. December 2026

Correct Answer: “2”

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Union Budget MCQs For Financial Year 2020-21

Q1) Who presented the Union Budget 2020 in Parliament?

  1. Krishnamurthy V Subramanian
  2. Nirmala Sitharaman
  3. Nitin Gadkari
  4. Smriti Zubin Irani
  5. Narendra Modi

Correct Answer: “2”

Q2) How much fund is allocated for Swachh Bharat Mission in 2020-21?

  1. 12,300 crore
  2. 11,110 crore
  3. 13,000 crore
  4. 13,900 crore
  5. 10,450 crore

Correct Answer: “1”

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Q3) How much fund is allocated for the power and renewable energy sector?

  1. 22,000 crore
  2. 27,000 crore
  3. 18,000 crore
  4. 24,000 crore
  5. 20,000 crore

Correct Answer: “1”

Q4) When will India host G20 presidency?

  1. 2022
  2. 2020
  3. 2024
  4. 2025
  5. 2021

Correct Answer: “1”

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Q5) How much fund is allocated for National Textile Mission?

  1. 2,000 crore
  2. 2,200 crore
  3. 1,480 crore
  4. 1,385 crore
  5. 1,550 crore

Correct Answer: “3”

Q6) How much fund is allocated for senior citizens and Divayang?

  1. 8,500 crore
  2. 10,000 crore
  3. 9,000 crore
  4. 8,000 crore
  5. 10,110 crore

Correct Answer: “3”

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Q7) As per the Budget 2020, five archaeological sites to be developed at iconic sites with on-site museum. Which one of the following is not among them?

  1. Rakhigarhi, Haryana
  2. Khajuraho, Madhya Pradesh
  3. Sivasagar, Assam
  4. Dholavira, Gujarat
  5. Adichanallur, Tamil Nadu

Correct Answer: “2”

Q8) How much fund is allocated for Cultural Ministry?

  1. 4,575 crore
  2. 5,000 crore
  3. 3,725 crore
  4. 2,450 crore
  5. 3,150 crore

Correct Answer: “5”

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Q9) As per Budget 2020, how many airports to be developed by 2024 to support UDAAN scheme?

  1. 100
  2. 50
  3. 200
  4. 150
  5. 300

Correct Answer: “1”

Q10) How much fund is allocated for transport infrastructure in 2020-21?

  1. 1,00,000 crore
  2. 1,70,000 crore
  3. 2,00,000 crore
  4. 2,30,000 crore
  5. 1,50,000 crore

Correct Answer: “2”

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Q11) How much fund is allocated for the development and promotion of industry and commerce in 2020-21?

  1. 25,000 crore
  2. 29,600 crore
  3. 27,300 crore
  4. 25,250 crore
  5. 26,400 crore

Correct Answer: “3”

Q12) How much fund is allocated for Jal Jeevan Mission?

  1. 2.6 lakh crore
  2. 4 lakh crore
  3. 4.2 lakh crore
  4. 3.6 lakh crore
  5. 5 lakh crore

Correct Answer: “4”

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Q13) How much fund is allocated for the health care sector?

  1. 69,000 crore
  2. 72,000 crore
  3. 63,350 crore
  4. 80,000 crore
  5. 75,000 crore

Correct Answer: “1”

Q14) How much fund is allocated for National Mission on Quantum Computing and Technology?

  1. 7,900 crore
  2. 9,000 crore
  3. 9,500 crore
  4. 10,500 crore
  5. 8,000 crore

Correct Answer: “5”

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Q15) According to Budget 2020, what is the fiscal deficit target for FY21?

  1. 3.2% of GDP
  2. 3.5% of GDP
  3. 3% of GDP
  4. 3.8% of GDP
  5. None of the above

Correct Answer: “2”

Q16) Who presented the first Union Budget of Independent India?

  1. Morarji Desai
  2. Yashwant Sinha
  3. C.D. Deshmukh
  4. R.K. Shanmukham Chetty
  5. T.T. Krishnamachari

Correct Answer: “4”

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Q17) How much fund is allocated for skill development?

  1. 3,000 crore
  2. 4,500 crore
  3. 5,000 crore
  4. 3,200 crore
  5. 4,000 crore

Correct Anwer: “1”

Q18) How much fund is allocated for the welfare and development of Scheduled Tribes?

  1. 52,000 crore
  2. 53,700 crore
  3. 61,200 crore
  4. 60,000 crore
  5. 80,000 crore

Correct Answer: “2”

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Q19) How much fund is allocated for welfare and development of schedule class and other backward classes?

  1. 81,900 crore
  2. 72,200 crore
  3. 70,000 crore
  4. 85,000 crore
  5. 65,000 crore

Correct Answer: “4”

Q20) According to Budget 2020, how much insurance cover increased per depositor?

  1. 10 lakh
  2. 8 lakh
  3. 5 lakh
  4. 2 lakh
  5. 6 lakh

Correct Answer: “3”

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Q21) How much fund is allocated for Bharat net program in 2021?

  1. 6,000 crore
  2. 7,500 crore
  3. 5,000 crore
  4. 8,000 crore
  5. 5,500 crore

Correct Answer: “1”

Q22) According to budget 2020, fibre to home connections through Bharat net will link how many panchayats this year?

  1. 1,50,000
  2. 1,00,000
  3. 80,000
  4. 2,00,000
  5. 95,000

Correct Answer: “2”

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Q23) According to Budget 2020, India is set to become $5 trillion economy by the end of?

  1. 2025
  2. 2028
  3. 2022
  4. 2030
  5. 2024

Correct Answer: “5”

Q24) According to Budget 2020, the role of Government is to double farmers’ income by?

  1. 2020
  2. 2024
  3. 2021
  4. 2025
  5. 2022

Correct Answer: “5”

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Q25) According to Budget 2020, how much is the agriculture credit target?

  1. 10 lakh crore
  2. 12 lakh crore
  3. 15 lakh crore
  4. 18 lakh crore
  5. 20 lakh crore

Correct Answer: “3”

Q26) Who among the following was the first female presented budget in the parliament?

  1. Amrit Kaur
  2. Sucheta Kriplani
  3. Indira Gandhi
  4. Sarojini Naidu
  5. Vijaya Lakshmi Pandit

Correct Answer: “3”

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Q27) Who presented the Budget the maximum number of times?

  1. Yashwant Sinha
  2. C.D. Deshmukh
  3. Morarji Desai
  4. T.T. Krishnamachari
  5. R.K. Shanmukham Chetty

Correct Answer: “3”

Q28) Which rail will be set up by the government for agriculture so that goods can be quickly transported across the country?

  1. Kisan Rail
  2. Farmer’s Rail
  3. Krishi Rail
  4. Krishi Kalyan Rail
  5. None of the above

Correct Answer: “1”

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Q29) How much amount is allocated for irrigation and rural development?

  1. 2.83 lakh crore
  2. 3.51 lakh crore
  3. 1.67 lakh crore
  4. 3.79 lakh crore
  5. 4.2 lakh crore

Correct Answer: “1”

Q30) The government announced the introduction of which exam for Asian and African countries to help make India a higher education destination?

  1. Ind-MAT
  2. Ind-SAT
  3. Ind-CAT
  4. Ind-XAT
  5. Ind-GSAT

Correct Answer: “2”

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Q31) The government proposed to expand the national gas grid from present 16,200 km to?

  1. 25,000 km
  2. 32,000 km
  3. 27,000 km
  4. 30,000 km
  5. 36,000 km

Correct Answer: “3”

Q32) In the next how many years, Government energy meters to be replaced by prepaid ‘smart meters’?

  1. 2
  2. 6
  3. 4
  4. 5
  5. 3

Correct Answer: “5”

Q33) Which of the following will be launched by civil aviation ministry for exports in agriculture?

  1. Kisan UDAAN
  2. Farmer UDAAN
  3. Kisan Kalyan UDAAN
  4. Krishi UDAAN
  5. Farmer Seva UDAAN

Correct Answer: “4”

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Q34) According to budget, the use of which type of energy to be promoted in the farming sector?

  1. Chemical energy
  2. Solar energy
  3. Light energy
  4. Heat energy
  5. Nuclear energy

Correct Answer: “2”

Q35) How much concessional tax rate extended to power generation companies?

  1. 15%
  2. 10%
  3. 25%
  4. 20%
  5. 5%

Correct Answer: “1”

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Q36) According to budget, people with income 5 lakh to 7.5 lakh will have to pay how much tax?

  1. 15%
  2. 5%
  3. 10%
  4. 7.5%
  5. 8.5%

Correct Answer: “3”

Q37) According to Budget, people between what income will pay taxes of 25%?

  1. 11 lakh to 14.5 lakh
  2. 12 lakh to 15 lakh
  3. 11.5 lakh to 15 lakh
  4. 12.5 lakh to 15 lakh
  5. Above 15 lakh

Correct Answer: “4”

Q38) How much tax people will pay with the income above 15 lakh?

  1. 35%
  2. 37.5%
  3. 30%
  4. 35.5%
  5. 32.5%

Correct Answer: “3”

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Q39 In order to boost MSMEs, the turnover threshold for audit raised to how much from 1 crore?

  1. 5 crore
  2. 3 crore
  3. 7 crore
  4. 10 crore
  5. 8 crore

Correct Answer: “1”

Q40) By which year Delhi Mumbai expressways and two other corridors will be completed?

  1. 2024
  2. 2022
  3. 2025
  4. 2021
  5. 2023

Correct Answer: “5”

Q41) How many consumers have got benefitted by GST?

  1. 1.5 lakh crore
  2. 2 lakh crore
  3. 2.5 lakh crore
  4. 1 lakh crore
  5. 2.8 lakh crore

Correct Answer: “4”

Q42) How many Aspirational Districts will be covered for AYUSHMAAN Treatment?

  1. 112
  2. 134
  3. 100
  4. 142
  5. 126

Correct Answer: “1”

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Q43) Name the independent body which will set up for the recruitment to non-gazetted posts through the computer-based online process?

  1. National Recruiting Agency
  2. National Recruitment Agency
  3. Common Eligibility Test
  4. Common Recruitment Agency
  5. None of the above

Correct Answer: “2”

Q44) By which year will be Expansion of Jan Ausadhi Kendra scheme to all districts will be completed?

  1. 2021
  2. 2025
  3. 2023
  4. 2022
  5. 2024

Correct Answer: “5”

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Q45) How much percentage is raised for Customs duty on auto and auto parts?

  1. 15%
  2. 10%
  3. 20%
  4. 25%
  5. 5%

Correct Answer: “2”

Q46) By which year India will have the largest working-age population in the world?

  1. 2025
  2. 2024
  3. 2030
  4. 2050
  5. 2028

Correct Answer: “3”

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Q47) How much amount is announced for National Infrastructure pipeline projects?

  1. 110 lakh crore
  2. 127 lakh crore
  3. 99 lakh crore
  4. 103 lakh crore
  5. 117 lakh crore

Correct Answer: “4”

Q48) As per the budget 2020, how many taxpayers have been added to GST?

  1. 7 million
  2. 5 million
  3. 10 million
  4. 8 million
  5. 6 million

Correct Answer: “5”

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Q49) How many higher education institutes will have apprenticeship programs by March 2021?

  1. 100
  2. 180
  3. 200
  4. 115
  5. 150

Correct Answer: “5”

Q50) Where does the tribal museum is going to set up?

  1. Jharkhand
  2. Maharashtra
  3. Bihar
  4. Himachal Pradesh
  5. Assam

Correct Answer: “1”

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This was all from us in this blog, Important Union Budget Questions 2020. We have covered all the important expected MCQs important from the examination point of view. I hope you would like the information provided above and if we miss anything do let us know in the comment section below.

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