Economy · Chapter 8 of 10

Public Finance and Taxation: BPSC Prelims PYQs

3 previous-year questions on Public Finance and Taxation, asked 2026. Each one opens to its answer and explanation.

1. 1. BPSC Assistant Section Officer Mains 2026

   Given below are two statements, one labelled Assertion (A) and the other labelled Reason (R).

   Assertion (A): India's National Monetisation Pipeline (NMP) is expected to strengthen fiscal consolidation by reducing the fiscal deficit without cutting capital expenditure.

   Reason (R): Proceeds from asset monetisation are treated as capital receipts, allowing them to be used for financing infrastructure creation rather than revenue expenditure.

   1. ABoth A and R are true, and R is the correct explanation of A
   2. BBoth A and R are true, but R is not the correct explanation of A
   3. CA is true, but R is false
   4. DA is false, but R is true
   Answer and explanation →

2. 2. BPSC Assistant Section Officer Mains 2026

   Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act, 2003:

   • 1. The Act mandates the elimination of the revenue deficit and the reduction of the fiscal deficit to 3% of GDP.
   • 2. It prohibits the government from borrowing from the Reserve Bank of India, except under exceptional circumstances.
   • 3. The Act requires the Central Government to present a Medium-Term Fiscal Policy Statement along with the annual budget.

   Which of the statements given above are correct?

   1. AOnly 1 and 2
   2. BOnly 2 and 3
   3. COnly 1 and 3
   4. DAll of 1, 2 and 3
   Answer and explanation →

3. 3. BPSC Assistant Education Development Officer 2026

   Which one of the following committees is not related to tax reforms in India?

   1. AChelliah Committee
   2. BTarapore Committee
   3. CKelkar Committee
   4. DReforms Commission
   Answer and explanation →