99 previous year UPSC Prelims questions on the UPSC 2025 Prelims. Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 71–80 of 99 questions
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UPSC 2025Indian Economy · Public Finance
Q71. Suppose the revenue expenditure is 80,000 crores and the revenue receipts of the Government are 60,000 crores. The Government budget also shows borrowings of 10,000 crores and interest payments of 6,000 crores. Which of the following statements are correct? I. Revenue deficit is 20,000 crores. II. Fiscal deficit is 10,000 crores. III. Primary deficit is 4,000 crores. Select the correct answer using the code given below.
Statement 2 is correct: Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings). A fiscal deficit is equal to borrowing. Here, total borrowing = 10,000 crores, which is the fiscal deficit as per budget accounting, because borrowings fill the gap between total expenditure and non-borrowed receipts.
UPSC 2025International Relations and Current Affairs · International Relations
Q72. India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect
Explanation
The International North-South Transport Corridor (INSTC) is a multimodal network connecting India to Central Asia and Europe via Iran. The route links the Indian Ocean and Persian Gulf to the Caspian Sea through Iran, and then extends to Russia and Northern Europe, facilitating trade between India, Iran, Azerbaijan, Russia, Central Asia, and Europe. INSTC (International North-South Transport Corridor) is India’s vision and initiative to reduce the time taken for EXIM shipments to reach Russia, Europe and enter the central Asian markets. Successful activation of the corridor will help connect India to Russia and Central Asian countries. The Chabahar Port, located in Iran, is the commercial transit centre for the region, especially Central Asia.
UPSC 2025Indian Economy · Industry
Q73. Consider the following statements: Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?
Explanation
Statement 1 is incorrect: The United States is the largest producer of ethanol in the world, accounting for about 52% of global production, while Brazil produces about 28%. For example, in 2024, the U.S. produced 16,219 million gallons, and Brazil produced 8,780 million gallons. Brazil was the top producer until 2005, but since then, the U.S. has consistently outproduced Brazil.
Statement 2 is correct: In the U.S., the principal feedstock for ethanol production is made corn. In Brazil, sugarcane is the main feedstock for ethanol production.
UPSC 2025Environment and Ecology · Climate Change
Q74. The World Bank warned that India could become one of the first places where wet-bulb temperatures routinely exceed 35°C. Which of the following statements best reflect(s) the implication of the above-said report? I. Peninsular India will most likely suffer from flooding, tropical cyclones and droughts. II. The survival of animals including humans will be affected as shedding of their body heat through perspiration becomes difficult. Select the correct answer using the code given below.
Explanation
Wet-bulb temperature is the lowest temperature that air can reach through the process of evaporation of water under current atmospheric conditions. It is measured by wrapping a thermometer bulb in a wet cloth and exposing it to air flow; as water evaporates from the cloth, it cools the thermometer, and the resulting temperature is the wet-bulb temperature.
Statement 1 is incorrect: Flooding, tropical cyclones and droughts in the Peninsular India are significant impacts of climate change. These are not the direct implications of the wet-bulb temperatures exceeding 35°C. The World Bank’s warning in its report titled Climate Investment Opportunities in India’s Cooling Sector, specifically relates to heat and humidity, not to hydrometeorological events like floods or cyclones.
Statement 2 is correct: This statement directly reflects the core implication of the World Bank’s report titled "Climate Investment Opportunities in India’s Cooling Sector". At wet-bulb temperatures above 35°C, humans and animals cannot cool themselves through sweating, leading to life-threatening conditions.
Additional insight:
Wet-bulb temperature reflects both heat and humidity in the air. When relative humidity is high, less evaporation occurs, so the wet-bulb temperature is closer to the actual air temperature. When humidity is low, more evaporation happens, making the wet-bulb temperature much lower than the air temperature. At 100% relative humidity, the wet-bulb and air temperatures are equal because no more evaporation can occur. Wet-bulb temperature is important because it indicates the limit at which humans and animals can cool themselves by sweating. If the wet-bulb temperature rises above 35°C, the body can no longer shed heat effectively, making survival difficult even for healthy individuals.
UPSC 2025Indian Economy · Public Finance
Q75. A country’s fiscal deficit stands at 50,000 crores. It is 10,000 receiving crores through non-debt creating capital receipts. The country’s interest liabilities are 1,500 crores. What is the gross primary deficit?
Explanation
A fiscal deficit occurs when a government’s total expenditure exceeds its total revenue (excluding borrowings) in a financial year. It represents the amount the government needs to borrow to meet its expenses. Primary deficit is the fiscal deficit of the current year minus interest payments on previous borrowings. It shows the government’s borrowing requirement excluding interest obligations. To find the gross primary deficit, use the formula:
Gross Primary Deficit = Fiscal Deficit - Interest Payments It is given that:
Fiscal Deficit = 50,000 crores Interest Liabilities = 1,500 crores Placing these values in the above formula we get, Gross Primary Deficit = 50,000 - 1,500 = 48,500 crores Non-debt creating capital receipts are already accounted for in the fiscal deficit calculation and do not need to be subtracted again. Thus, Option (a) is the correct answer.
UPSC 2025Indian Economy · Public Finance
Q76. Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? 1. It has recommended grants of Rs. 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. 2. 45% of the net proceeds of Union taxes are to be shared with States. 3. Rs. 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. 4. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
Explanation
The 15th Finance Commission of India was constituted by the President of India in November 2017 under Article 280 of the Constitution. The Commission was chaired by N.K. Singh and its recommendations cover the five-year period from 2021-22 to 2025-26.
Statement 1 is correct: The 15th Finance Commission did recommend grants of Rs. 4,800 crore (Rs. 1,200 crore each year) from 2022-23 to 2025-26 for incentivising the States to enhance educational outcomes.
Statement 2 is incorrect: The 15th Finance Commission recommended a devolution of 41% of net Union taxes to states, not 45%.
Statement 3 is correct: The Commission recommended 45,000 crores as performance-based incentives for agricultural reforms.
Statement 4 is correct: The 15th Finance Commission reintroduced fiscal (tax) effort as a criterion for horizontal devolution.
Additional insight:
Key Recommendations of the 15th Finance Commission:
Vertical Devolution: The Commission recommended that states receive 41% of the divisible pool of central taxes for 2021-26, a slight reduction from the previous 42% due to the reorganization of Jammu & Kashmir into Union Territories. Horizontal Devolution: Allocation among states is based on criteria such as population, area, income, forest cover, and tax effort, aiming for equity and performance. Grants to States:
Revenue deficit grants: 2.9 lakh crore to 17 states to bridge the gap between their revenue and expenditure. Performance-based grants: 4,800 crore to incentivize educational outcomes and 45,000 crore for agricultural reforms. State-specific grants: 49,599 crore for areas like social needs, infrastructure, water, sanitation, and tourism. Grants to Local Bodies: 4.36 lakh crore allocated to local governments, with a portion linked to performance, supporting all three tiers of Panchayati Raj. Fiscal Roadmap: The Commission advised the Centre to reduce its fiscal deficit to 4% of GDP by 2025-26 and set phased targets for states. It also recommended a high-level group to review the FRBM Act and establish an independent Fiscal Council. Revenue Mobilization & GST: Strengthening income and asset-based taxation and rationalizing GST rates were emphasized to improve revenue and address structural issues in GST. Sectoral Recommendations:
Health: States should raise health spending to over 8% of their budgets, with a focus on primary care. Defence & Internal Security: A non-lapsable Modernisation Fund for Defence and Internal Security (MFDIS) should be created to address funding gaps. Disaster Risk Management: Mitigation funds should be set up at both national and state levels as per the Disaster Management Act
Exam tip:
The knowledge of just S2 fact that it’s 41% not 45%, which has been repeated multiple times in the last few years, is enough to reach correct answer option C.
UPSC 2025Indian Economy · External Sector of India
Q77. Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD): 1. It provides loans and guarantees to middle income countries. 2. It works single-handedly to help developing countries to reduce poverty. 3. It was established to help Europe rebuild after World War II. Which of the statements given above are correct?
Explanation
The International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries. As the largest development bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges.
Statement 1 is correct: The International Bank for Reconstruction and Development (IBRD) provides loans, guarantees, and advisory services to middle-income and creditworthy low-income countries.
Statement 2 is incorrect: The International Bank for Reconstruction and Development (IBRD) is part of the World Bank Group and works in coordination with other institutions (like IDA), governments, and partners; IBRD does not work alone. IBRD works closely with all institutions of the World Bank Group and the public and private sectors in developing countries to reduce poverty and build shared prosperity.
Statement 3 is correct: The IBRD was created in 1944 with the initial mission of financing the reconstruction of European nations after World War II.
Exam tip:
For S2, the word "single-handedly " is way too extreme to be true for such a large task. Hence S2 likely false, giving option C as correct.
UPSC 2025Indian Economy · Banking Sector in India
Q78. Consider the following statements in respect of RTGS and NEFT: 1. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. 2. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. 3. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?
Explanation
RTGS and NEFT are examples of Inter Bank Transfer is a special service that allows you to transfer funds electronically to accounts in other banks in India.
Statement 1 is correct:
RTGS (Real Time Gross Settlement) processes transactions instantly and in real time. NEFT (National Electronic Funds Transfer) processes transactions in half-hourly batches, so settlement is not instantaneous and can take up to 2 hours.
Statement 2 is incorrect: As per RBI guidelines, no charges are levied for inward transactions (receiving funds) in both RTGS and NEFT systems. Charges, if any, are typically for outward transactions (sending money).
Statement 3 is incorrect: Both RTGS and NEFT are now available 24x7x365, including weekends and bank holidays. There are no restricted hours for either system as per current RBI guidelines.
Additional insight:
Other Modes of Inter Bank Transfer include:
IMPS (Immediate Payment Service): Enables instant, 24x7 money transfers between banks using internet banking or mobile apps. UPI (Unified Payments Interface): Facilitates instant interbank transfers via mobile apps, using a virtual payment address. Society for Worldwide Interbank Financial Telecommunications (SWIFT): It is used for international interbank transfers, connecting banks globally for cross-border payments.
Exam tip:
For S1, RTGS = Real-Time Gross Settlement, "Real time" clearly indicates instantaneous, and NEFT is not real time, it must be your real life experience. Hence S1 is likely true. For S2, Inward transaction = receiving money. Have you ever seen in your real life that you receive money and a charge is deducted? No! Hence likely false. Thus eliminate options C and D.
UPSC 2025Indian Economy · Banking Sector in India
Q79. Consider the following countries: 1. United Arab Emirates 2. France 3. Germany 4. Singapore 5. Bangladesh How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?
Explanation
Unified Payments Interface (UPI) is an instant, real-time payment system developed by the National Payments Corporation of India (NPCI) in 2016. It enables users to transfer funds between bank accounts, pay bills, and make merchant payments seamlessly through a single mobile application. UPI supports both peer-to-peer and person-to-merchant transactions, operates 24x7, and eliminates the need to enter bank details for each transaction, making digital payments fast, secure, and convenient. List of countries where international merchant payments are accepted at select merchant outlets. Sr. No. Country Name
1. Bhutan
2. France
3. Mauritius
4. Nepal
5. Singapore
6. Sri Lanka
7. UAE Therefore, only three countries among the given options (UAE, France, Singapore) accept international merchant payments via UPI, apart from India.
UPSC 2025Polity · President
Q80. With reference to the Indian polity, consider the following statements: 1. An Ordinance can amend any Central Act. 2. An Ordinance can abridge a Fundamental Right. 3. An Ordinance can come into effect from a back date. Which of the statements given above are correct?
Explanation
Article 123 of the Constitution empowers the President to promulgate ordinances during the recess of Parliament. These ordinances have the same force and effect as an act of Parliament, but are in the nature of temporary laws.
Statement 1 is correct: An ordinance, issued under Article 123 of the Constitution when Parliament is not in session, has the same force and effect as an Act of Parliament. Therefore, it can amend any existing Central Act, just like a regular law passed by Parliament.
Statement 2 is incorrect: Although an ordinance has the force of law, it is subject to constitutional limitations. As per Article 13(2), the State cannot make any law--including an ordinance--that abridges or takes away Fundamental Rights. Any such ordinance would be unconstitutional and liable to be struck down by the judiciary.
Statement 3 is correct: An ordinance can be given retrospective effect, similar to laws passed by the legislature. There is no constitutional bar on making an ordinance effective from a back date, as long as the ordinance explicitly provides for it.
Answer key for these questions
Q
UPSC year
Correct answer
71
2025
(d) I, II and III
72
2025
(a) India to Central Asia to Europe via Iran
73
2025
(d) Statement I is not correct but Statement II is correct
74
2025
(b) II only
75
2025
(a) 48,500 crores
76
2025
(c) I, III and IV
77
2025
(c) I and III only
78
2025
(a) I only
79
2025
(b) Only three
80
2025
(c) I and III only
Frequently asked questions
How many previous year UPSC questions are there on all subjects?
This page covers 99 previous year UPSC Prelims GS Paper-I questions on the UPSC 2025 Prelims, asked from 1995 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for all subjects?
Questions on the UPSC 2025 Prelims are available for 31 years, from 1995 to 2025. Use the Year filter to practise a single paper.
