The Union Budget 2025–26 introduced several new policy measures to stimulate economic growth. Consider the following statements:
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Fiscal deficit for FY26 is projected at 4.5% of GDP, down from 5.1% in FY25.
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The tax exemption limit under the new tax regime has been increased to ₹12 lakh annually.
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The government introduced a special package for electric vehicles (EVs), including a 50% subsidy on EV manufacturing.
Which of the statements given above is/are correct?
1 and 2 only
2 and 3 only
1, 2 and 3
1 only
2 only
Answer and explanation
The correct answer is A: 1 and 2 only.
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Statement 1 is CORRECT: Fiscal deficit for FY26 is projected at 4.5% of GDP, reduced from 5.1% in FY25, reflecting fiscal consolidation.
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Statement 2 is CORRECT: The tax exemption limit under the new tax regime has been raised to ₹12 lakh annually.
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Statement 3 is INCORRECT: No 50% subsidy on EV manufacturing was announced. The government proposed EV incentives, but not at this level. GST on EVs remains at 5% to encourage adoption.
Additional Information:
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₹5,000 crore allocated for green energy investments.
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The budget emphasized fiscal prudence while promoting green and digital economy solutions.