DAILY CURRENT AFFAIRS QUIZ – 2 February, 2026

Explanation:
Budget 2026 balances growth promotion with fiscal responsibility. It focuses on capex-led growth, structural reforms and targeted welfare rather than excessive populism. At the same time, it keeps deficits and debt sustainability in mind. This approach reflects growth-oriented prudence, aiming for long-term economic stability. Hence, the budget adopts a calibrated and balanced fiscal strategy.

Explanation:
MSMEs are the backbone of India’s economy, contributing significantly to employment, exports and regional development. Budget 2026 introduces credit support, funds and policy reforms to improve MSME liquidity and competitiveness. Strengthening MSMEs promotes inclusive growth and reduces regional imbalances. They also play a key role in absorbing labour from agriculture. Therefore, MSME support is central to economic resilience.

Explanation:
Macro stability involves maintaining a balance between growth, inflation, fiscal deficit and external stability. Budget 2026 seeks to sustain growth while keeping fiscal indicators under control. Stable macroeconomic conditions build investor confidence and protect vulnerable populations from shocks. It also ensures long-term sustainability of public finances. Thus, macro stability is a key objective of responsible fiscal policy.

Explanation:
Customs duty rationalisation directly affects the manufacturing sector by reducing input costs and improving competitiveness. Budget 2026 aims to simplify tariff structures to support domestic manufacturing and exports. Lower duties on raw materials encourage value addition within India. This also aligns with Make in India and supply chain resilience goals. Hence, manufacturing stands to benefit most from customs duty reforms.

Explanation:
Higher defence allocation reflects India’s focus on strengthening national security amid evolving geopolitical challenges. Budget 2026 prioritises defence modernisation, indigenous manufacturing and readiness. It also supports the defence industrial ecosystem under initiatives like Atmanirbhar Bharat. Defence spending has strategic as well as economic benefits by generating skilled employment and boosting manufacturing. Thus, increased defence allocation signals long-term strategic preparedness.