Which statement is true for Finance Sector (Fiscal Management) in the Union Budget-2023?

1. A

   Twenty years interest-free loans to States.

   This option claims that the Union Budget 2023 provided twenty years interest-free loans to States. However, the actual provision in the budget was for fifty-year interest-free loans to state governments to spur capital investment, making this statement incorrect.

2. B

   Fiscal Deficit of 3.5% of GSDP allowed for States.

   This option claims that a fiscal deficit of 3.5% of GSDP is allowed for States in the Union Budget 2023 for the financial year 2023-24. This accurately reflects the fiscal management provision recommended by the 15th Finance Commission and permitted for states in this budget, rendering this the official correct key.

3. C

   Fiscal Deficit 2025-26, the target is to be below 5.5%.

   This option claims that the fiscal deficit target for the year 2025-26 is to be below 5.5%. In reality, the Union Budget 2023 targeted bringing the national fiscal deficit down to below 4.5% by 2025-26, making this option wrong regarding the target percentage.

4. D

   Budget estimates 2023-24 for total expenditure is ₹55 lakh crore.

   This option claims that the budget estimates for total expenditure in 2023-24 stand at ₹55 lakh crore. The actual total expenditure estimated in the Union Budget 2023-24 was ₹45.03 lakh crore, thus contradicting the official financial data presented in the budget speech.

Summary. Official key is (b). This option claims that a fiscal deficit of 3.5% of GSDP is allowed for States in the Union Budget 2023 for the financial year 2023-24. This accurately reflects the fiscal management provision recommended by the 15th Finance Commission and permitted for states in this budget, rendering this the official correct key.