QUESTION 01
Examine the rationale behind the government's preference for debt-to-GDP ratio over traditional deficit targets as a primary fiscal anchor in Budget 2026–27. Evaluate the potential benefits and risks of this framework for India’s macroeconomic stability.
Question Understanding – Finding Information
Precise Syllabus Mapping: Government Budgeting. (GS Paper – III)
Marks and words limit:
- The marks-oriented approach to answering (10-mark, 150-word) questions in the question is to use Bullet Points (one idea per bullet point), Brainstorming, or a combination of both.
- The way to score good marks in questions worth (15 marks. 250 words) is to use the Heading and Subheading method while writing your answers.
Directive words:
- Examine → Explain the reasoning with economic logic
- Evaluate → Balanced assessment (pros + risks)
Focal points of the questions:
- Fiscal policy
- Fiscal anchors
- Debt-to-GDP vs fiscal deficit
- Macro-economic stability
- Medium-term fiscal sustainability
Dos & Don’ts
Do for Maximum Marks
- Use macroeconomic terms: fiscal sustainability, counter-cyclical policy
- Maintain balanced tone
- Clearly separate rationale, benefits, risks
- Link fiscal anchor to growth-inflation-stability triangle
Don’t do these Common Mistakes
- Don’t write a Budget summary
- Don’t overload with statistics
- Don’t treat debt-to-GDP as automatically superior
- Don’t ignore institutional capacity issues
Download Complete Answer Blueprint
- ✔ Question Understanding: Finding Information
- ✔ Answer Writing Structure
- ✔ Dos & Don’ts
- ✔ Notes-Oriented Content for Writing Answers
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QUESTION 02
The Budget 2026 introduces 'Champion SMEs' and the 'SME Growth Fund.' Evaluate the role of MSMEs in achieving the 'Viksit Bharat' vision and the significance of integrating TReDS with GeM for liquidity.
Question Understanding – Finding Information
Precise Syllabus Mapping: Government Budgeting (GS Paper III) and Changes in industrial policy and their effects on industrial growth (GS Paper III)
Marks and words limit:
- The marks-oriented approach to answering (10-mark, 150-word) questions in the question is to use Bullet Points (one idea per bullet point), Brainstorming, or a combination of both.
- The way to score good marks in questions worth (15 marks. 250 words) is to use the Heading and Subheading method while writing your answers.
Directive words:
- Evaluate → Balanced assessment (role + limits + significance)
Focal points of the questions:
- MSMEs in Viksit Bharat vision
- New initiatives: Champion SMEs, SME Growth Fund
- TReDS–GeM integration
- Liquidity and working-capital constraints
Dos & Don’ts
Do for Maximum Marks
- Explicitly mention Budget 2026 initiatives
- Link MSMEs to growth + inclusion
- Explain TReDS–GeM integration clearly
- Maintain evaluation balance
Don’t do these Common Mistakes
- Don’t list schemes without analysis
- Don’t ignore liquidity dimension
- Don’t write generic MSME answers
- Don’t overuse statistics
Download Complete Answer Blueprint
- ✔ Question Understanding: Finding Information
- ✔ Answer Writing Structure
- ✔ Dos & Don’ts
- ✔ Notes-Oriented Content for Writing Answers
Need Personal Guidance?
Struggling to write high-scoring UPSC Mains answers for 10-mark (150 words) or 15-mark (250 words) questions?
🎯 Click Here to Book a Mentoring Session