Daily Current Affairs – 1 March 2026

English | Page Four | Editorial + MCQs

Analytical Writing | Prelims Practice | Concept Clarity

---

Editorial Theme: Fiscal Prudence and Welfare Expansion

The recent policy discussions highlight the challenge of balancing welfare expenditure with fiscal discipline. Governments must ensure social protection while maintaining macroeconomic stability.

Sustainable fiscal policy requires efficient tax collection, rationalized subsidies, and outcome-based public spending.

Key Analytical Dimensions

• Fiscal Deficit and Debt Sustainability
• Capital vs Revenue Expenditure
• Social Sector Spending Efficiency
• Inter-generational Equity

---

Prelims MCQs Practice

1. Which of the following best explains fiscal deficit?

A. Excess of exports over imports
B. Excess of government expenditure over total receipts excluding borrowings
C. Total public debt of a country
D. Inflation-adjusted revenue gap

Answer: B

---

2. Capital expenditure by the government generally leads to:

A. Immediate consumption increase
B. Reduction in productive assets
C. Creation of long-term productive capacity
D. Increase in revenue deficit

Answer: C

---

Mains Practice Question

“Fiscal prudence must not compromise developmental priorities.” Examine in the context of India’s recent budgetary trends.

---

Read. Reflect. Write. Revise.
© 2026 Shaktimatha Learning – English Current Affairs Initiative