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2 Jun 2026Economy3 questions

Provisional Accounts of the Union Government for Financial Year 2025-2026

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Article summary

The Controller General of Accounts (CGA) has released the provisional and unaudited accounts of the Union Government for the financial year 2025-2026. These accounts provide a comprehensive overview of the government's fiscal performance, detailing actual receipts, expenditure, and the resulting fiscal deficit against the Revised Estimates (RE) of the Union Budget. The data highlights trends in tax revenue collections, non-tax revenues, and capital expenditure, serving as a crucial indicator of macroeconomic stability and the government's adherence to fiscal consolidation targets under the FRBM Act.

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recallTests whether you read the article and retained key facts.
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applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

EconomyRecallEasy

Q1. The provisional accounts of the Union Government for a concluded financial year are released by which of the following authorities?

AController General of Accounts (CGA) under the Department of Expenditure, Ministry of Finance
BComptroller and Auditor General of India (CAG) under the Ministry of Finance
CChief Economic Adviser under the Department of Economic Affairs, Ministry of Finance
DReserve Bank of India acting as the banker to the Central Government
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EconomyApplicationMedium

Q2. A fiscal analyst reviewing the Union Government's provisional accounts for FY 2025-26 observes that the ratio of capital expenditure to total expenditure has risen significantly compared to the Revised Estimates, while the fiscal deficit has come in below the RE target. Which of the following conclusions is MOST directly supported by these two observations taken together?

AThe government improved the quality of its spending while exercising fiscal consolidation, suggesting a favourable outcome for long-term growth and FRBM compliance.
BA higher capital expenditure ratio automatically implies lower revenue expenditure in absolute terms, confirming fiscal prudence under the FRBM Act.
CThe reduction in fiscal deficit below the RE target is primarily attributable to buoyancy in indirect tax collections rather than expenditure management.
DThe provisional accounts data is sufficient to conclude that India's sovereign credit rating will be upgraded in the subsequent fiscal year.
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EconomyAnalysisHard

Q3. Consider the following statements regarding the provisional accounts of the Union Government and the related fiscal framework: 1. The provisional accounts released by the CGA represent audited figures and are legally final for the purposes of the FRBM Act compliance assessment. 2. The primary deficit is obtained by subtracting interest payments from the fiscal deficit, and a declining primary deficit indicates that the government's current revenues are increasingly able to cover its non-interest expenditures. 3. A significant positive deviation between provisional actuals and Revised Estimates — where actual revenue falls short of RE — may indicate systemic over-optimism in revenue projections, undermining the credibility of the budget forecasting process. 4. The timely release of provisional accounts by the CGA contributes to fiscal transparency by enabling early assessment of macroeconomic outcomes before the CAG's final audit report is presented to Parliament. Which of the statements given above are correct?

A2 and 4 only
B3 and 4 only
C1, 2 and 3 only
D2, 3 and 4 only
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