Lakshya NDA

Paper II · Part B — Economics

The Union Budget of India

Exam-focused notes, visual explanation, traps, revision sheet and every mapped past NDA question.

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Core4 mapped NDA questions

Build the idea

Build exam-ready understanding by connecting the core idea, formulas or facts, worked example and previous NDA questions. Focus on why each rule works, then test it under timed conditions.

Concept

The Union Budget is the annual financial statement of the Government of India's estimated receipts and expenditure for a financial year (1 April–31 March). It is presented in Parliament, usually on 1 February.

It is divided into the revenue budget and the capital budget.

Key Points & Formulas

  • Presented by the Finance Minister under Article 112 (Annual Financial Statement).
  • Revenue budget: revenue receipts and expenditure; Capital budget: loans and capital spending.
  • Fiscal deficit = total expenditure − total receipts (excluding borrowings).
  • The financial year runs from 1 April to 31 March.

Worked Example

Q. What is a fiscal deficit?

It is the gap between the government's total expenditure and its total receipts.

Borrowings are excluded from receipts in this calculation.

A fiscal deficit shows how much the government must borrow.

Common traps

  • Reading the prompt too quickly and missing a qualifier.
  • Memorising the result without checking when it applies.
  • Skipping units, signs, chronology or the final reasonableness check.

NDA shortcuts

  • State the governing rule before substituting values.
  • Eliminate impossible options before doing full calculation.

One-screen revision sheet

Recall before you practise

  • Core definition
  • Most-used rule
  • One representative example

Past-paper bank

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4 NDA questions

Choose an answer before the solution appears. Option order is mixed automatically.

Question 1

NDA II 2016

Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct? 1. KKC is calculated in the same way as Service Tax is calculated. 2. The current rate of KKC is 0.50%. 3. KKC is similar to the KKS (Krishi Kalyan Surcharge). Select the correct answer using the code given below:

Question 2

NDA II 2025

Which of the following were the years of Annual Plans?

Question 3

NDA II 2024

Which among the following is/are the objective(s) of setting up of Planning Commission in the 1950s in India?
1. To increase production and offering opportunities to all for employment
2. To make assessment of all resources of the country

Question 4

NDA II 2024

Which among the following statements with regard to Five Year Plans in India is/are correct?
1. The First and Ninth five year plans accorded high priority to agriculture
2. The Third Plan was based on the Harrod-Domar Model
3. Seventh Plan focused on food, work and productivity
4. The Ninth five year plan emphasized on massive investments in public sector

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