Union Budget 2021 Quiz: Questions & Answers on Economic Outlook 2021-22

Budget 2021 Quiz: Have a look at the important questions & answers on the Economic Outlook 2021-22. These questions are based on the announcements and allocations of the Union Budget 2021 and are expected of coming in Government Exams like UPSC, IBPS, SSC, RRB and others.

1. How much funds are allocated for the health & wellbeing sector in the Union Budget 2021-22?

a) Rs 2,23,846 crore

b) Rs. 2,87,000 crore

c) Rs. 1,97,000 crore

d) Rs. 1,10,055 crore

2. Which company's IPO will be launched in 2021-22 as a part of Government's disinvestment strategy?

a) Air India

b) Life Insurance Corporation

c) IDBI Bank

d) Shipping Corporation of India

3. How much capital expenditure has been allocated for BE 2021-22 in Budget 2021?

a) Rs. 4.12 lakh crore

b) Rs. 4.39 lakh crores

c) Rs. 34.50 lakh crore

d) Rs. 5.54 lakh crore

4. The fiscal deficit is estimated to be how much percent of the GDP in 2021-22 as per Union Budget 2021?

a) 9.5%

b) 8.8%

c) 7.4%

d) 6.8% 

5. What is the Budget 2021 allocation for the Indian Railways?

a) Rs. 1,10,055 crore

b) Rs. 2,15,000 crore

c) Rs. 1,41,000 crore

d) Rs. 3,05,984 crore

6. The Budget 2021 increases the FDI limit to 74% in the Insurance Sector. What was the previous FDI limit?

a) 62%

b) 55%

c) 49%

d) 35%

7. The Union Budget 2021-22 increases the Agricultural Credit Target to what amount for FY22?

a) Rs 10.3 lakh crore

b) Rs. 16.5 lakh crore

c) Rs 19.2 lakh crore

d) Rs 21.8 lakh crore

Answers & Explanations

1. (a) Rs 2,23,846 crore

Union Budget 2021-22 allocates Rs 2,23,846 crore for the Health and Wellbeing sector for fiscal year 2021-22 to strengthen three key areas: Preventive, Curative, and Wellbeing. Apart from this, the Budget allocation includes Rs 35,000 crore for COVID-19 vaccines.

2. (b) Life Insurance Corporation

The Budget 2021-22 estimates show Rs 1,75,000 crore revenue target from disinvestment in 2020-21. As a part of Strategic disinvestment, the IPO of the Life Insurance Corporation (LIC) will be launched in 2021-22.

3. (d) Rs. 5.54 lakh crore

The Budget 2021 allocates a financial outlay of Rs. 5.54 lakh crore for capital expenditure in BE 2021-22, a sharp increase in Capital Budget of 34.5% over Rs. 4.12 lakh crore allocated in Budget 2020-21.

4. (d) 6.8% 

The fiscal deficit is estimated to be 6.8% of GDP in BE 2021-22. The Budget 2021 predicts fiscal deficit at 9.5% in RE 2020-21.

5. (a) Rs. 1,10,055 crore

The Budget 2021 allocates Rs. 1,10,055 crore for the Indian Railways. Of this allocated amount, Rs 1,07,100 crore is for the capital expenditure. The Budget lays down the National Rail Plan for India for the creation of future ready Railways by 2030.

6. (c) 49%

The permissible limit of the Foreign Direct Investment (FDI) has been raised from 49% to 74% in the Insurance sector. The Budget 2021 paves the way for foreign ownership and control in the insurance sector with safeguards.

7. (b) Rs. 16.5 lakh crore

The Budget enhances the Agricultural Credit Target to Rs 16.5 lakh crore for 2021-22 with the main focus on animal husbandry, dairy and fisheries sectors.