With reference to the Union Budget 2025–26, consider th - Practice (English) | ObjectiveMcq

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With reference to the Union Budget 2025–26, consider th - Practice (English) | ObjectiveMcq

PracticeEconomic & Social IssuesGovernment BudgetingWith reference to the Union Budget ...

Government Budgeting Economic & Social IssuesMedium

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With reference to the Union Budget 2025–26, consider the following statements:

The Minimum Support Price (MSP) for all major crops was increased by 12% to ensure better farmer incomes.
A new Infrastructure Development Fund of ₹2.5 lakh crore has been created for the construction of rural roads and port connectivity.
The public sector banks (PSBs) have been allotted ₹25,000 crore to improve their capital adequacy ratios.

Which of the statements given above is/are correct?

Correct Answer: E — 1 only

Explanation:

The correct answer is E: 1 only.

Statement 1 is CORRECT: MSP for major crops was increased by 12% to boost farmer incomes.
Statement 2 is INCORRECT: A new Infrastructure Fund was announced, but the amount was ₹2 lakh crore (not ₹2.5 lakh crore) and it was not exclusively for rural roads and port connectivity.
Statement 3 is INCORRECT: ₹25,000 crore was allocated to PSBs to enhance their lending capacity, not specifically to improve capital adequacy ratios.

Additional Information:

A ₹1.4 lakh crore allocation for Pradhan Mantri Awas Yojana was announced for affordable housing.
The Infrastructure Fund will cover both urban and rural areas in a phased manner.

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