Fiscal Policy MCQ — 3 Practice Questions with Answers

Practice 3 Fiscal Policy multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

3 Questions Indian Economy

Q1. The NITI Aayog Fiscal Health Index 2026 evaluates states on five pillars. Which of the following is NOT one of them?

A Quality of Expenditure

B Revenue Mobilisation

C Human Development Index Correct

D Debt Sustainability

Explanation

The five pillars of the NITI Aayog Fiscal Health Index 2026 are: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability. Human Development Index is not a component of FHI.

Q2. Which state topped the NITI Aayog Fiscal Health Index (FHI) 2026 among major states?

A Gujarat

B Odisha Correct

C Maharashtra

D Madhya Pradesh

Explanation

Odisha topped the Fiscal Health Index 2026 among major states, reflecting its strong revenue management and low fiscal deficit. NITI Aayog CEO Nidhi Chhibber released this 2nd annual FHI on March 11, 2026, covering FY 2023-24.

Q3. The NITI Aayog Fiscal Health Index evaluates states on five pillars. Which of the following is NOT one of them?

A Revenue Mobilisation

B Debt Sustainability

C Quality of Expenditure

D Foreign Exchange Reserves Correct

Explanation

The five pillars of NITI Aayog FHI are: (1) Revenue Mobilisation, (2) Fiscal Prudence, (3) Debt Index, (4) Debt Sustainability, and (5) Quality of Expenditure. Foreign Exchange Reserves is not a pillar — it is a central government metric, not a state fiscal parameter.

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Frequently Asked Questions

How many Fiscal Policy MCQ questions are available?

There are 3 Fiscal Policy practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.

Are answers and explanations provided for Fiscal Policy MCQs?

Yes, every Fiscal Policy question comes with the correct answer and a detailed explanation to help you understand the underlying concept.

How is Fiscal Policy relevant to the RAS/RPSC exam?

Fiscal Policy falls under the Indian Economy section of the RAS/RPSC syllabus. It is a frequently tested area and regular practice with these MCQs will strengthen your preparation.

Can I practice Fiscal Policy questions in Hindi?

Yes, Aspirant Academy offers bilingual support. You can practice Fiscal Policy MCQs in both English and Hindi, including questions, options, and explanations.

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Fiscal Policy MCQ — 3 Practice Questions with Answers

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