The Union Budget 2025–26 introduced several new policy measures to stimulate economic growth. Consider the following statements: 1. Fiscal deficit for FY26 is projected at 4.5% of GDP, down from 5.1% in FY25. 2. The tax exemption limit under the new tax regime has been increased to ₹12 lakh annually. 3. 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?

The Union Budget 2025–26 introduced several new policy - Practice (English)

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The Union Budget 2025–26 introduced several new policy measures to stimulate economic growth. Consider the following statements:

Fiscal deficit for FY26 is projected at 4.5% of GDP, down from 5.1% in FY25.
The tax exemption limit under the new tax regime has been increased to ₹12 lakh annually.
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?

Correct Answer: A — 1 and 2 only

Explanation:

The correct answer is A: 1 and 2 only.

Statement 1 is CORRECT: Fiscal deficit for FY26 is projected at 4.5% of GDP, reduced from 5.1% in FY25, reflecting fiscal consolidation.
Statement 2 is CORRECT: The tax exemption limit under the new tax regime has been raised to ₹12 lakh annually.
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:

₹5,000 crore allocated for green energy investments.
The budget emphasized fiscal prudence while promoting green and digital economy solutions.