Current Affairs · Micro-test

Economy Current Affairs 2026

Ten questions on the economy in 2026: the Budget and the Finance Commission, how GDP is now measured, the RBI's first rate hike since 2023, the law that replaced MGNREGA, the census, and fuel.

10 questions · 5 minutes · instant scoring

What this topic actually tests

Economy questions in CLAT test concepts more than decimals: what the fiscal deficit measures, what the Finance Commission does under Article 280, why a base year changes, what the repo rate is. Pair each 2026 number with the concept behind it. The stories behind these questions, with their sources, are in the 30-day course: days 22, 23 and 25.

The common trap on this topic

Confusing the bodies: the Economic Survey comes from the Chief Economic Adviser, the Budget from the Finance Ministry under Article 112, monetary policy from the RBI's six-member committee, and tax sharing from the Finance Commission.

Economy Current Affairs 2026: answers and explanations

What fiscal deficit target did the Union Budget set for 2026-27?
Answer: C. 4.3% of GDP
The target is 4.3%, down from 4.4% in 2025-26.
Who chairs the 16th Finance Commission?
Answer: C. Arvind Panagariya
Arvind Panagariya chairs the 16th. N.K. Singh chaired the 15th and Y.V. Reddy the 14th.
Which new criterion did the 16th Finance Commission add for sharing taxes among States?
Answer: D. Contribution to GDP
Contribution to GDP (10% weight) replaced tax and fiscal effort. Forest cover and demographic performance were used by the 15th Commission.
To which base year did India move its GDP series in 2026?
Answer: C. 2022-23
The new base is 2022-23, replacing 2011-12.
What was the repo rate after the RBI's October 2026 decision?
Answer: D. 5.50%
It rose 25 basis points from 5.25% to 5.50%. 5.75% is the MSF rate; 5.25% the SDF rate.
How many days of wage employment a year does the VB-G RAM G Act guarantee to a rural household?
Answer: A. 125
It raised the guarantee from MGNREGA's 100 days to 125.
What is the reference date for Census 2027 in most of India?
Answer: A. 1 March 2027
It is 00:00 hours on 1 March 2027; 1 October 2026 applies to snow-bound areas.
According to NFHS-6 (2023-24), India's total fertility rate is:
Answer: B. 2.0
The TFR stayed at 2.0, below the replacement level of 2.1. 1.6 is the urban figure.
E85 fuel, launched in India in June 2026, contains:
Answer: B. 85% ethanol and 15% petrol
The number is the ethanol share. E20 is 20% ethanol; E100 is pure ethanol.
By what year does India aim to reach net-zero emissions?
Answer: B. 2070
India announced net zero by 2070 at COP26 in Glasgow (2021). 2047 is the 'Viksit Bharat' goal; China's net-zero target is 2060.

FAQ

What is the repo rate after October 2026?

5.50%. The RBI raised it by 25 basis points on 7 October 2026, its first increase since February 2023, and changed its stance to calibrated tightening.

What did the 16th Finance Commission recommend?

It kept the States' share of central taxes at 41% for 2026-31 and added contribution to GDP, weighted at 10%, to the formula for dividing it among States.

What replaced MGNREGA?

The VB-G RAM G Act, from 1 July 2026, with a guarantee of 125 days of work a year and funding shared 60:40 between the Centre and most States.

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