Consider the following statements in the context of the Union Budget, 2026-27 :
- 1The Gross Tax Revenue of the Central Government is estimated to be 11.2 percent of the GDP.
- 2The Direct Tax Revenue of the Central Government is less than its Indirect Tax Revenue.
- 3The Effective Capital Expenditure is lower than the Capital Expenditure.
- 4The tariff rate on all dutiable goods imported for personal use will be reduced from 20 percent to 10 percent.
Which of the statements given above is/are correct?
- A1 only
- B1, 2 and 3
- C4 only
- D1 and 4
Explanation
In the Union Budget 2026-27, gross tax revenue is estimated at 11.2% of GDP — statement 1 is correct. Direct tax collections (personal plus corporate income tax) exceed indirect taxes in recent budgets, so statement 2 is false. 'Effective capital expenditure' adds grants-in-aid for creation of capital assets to budgetary capital expenditure, so it is necessarily higher than capital expenditure — statement 3's claim that it is lower is definitionally false. The budget also proposed cutting the tariff on dutiable goods imported for personal use from 20% to 10% — statement 4 is correct. Hence statements 1 and 4.