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    Question

    The Budget 2025–26 exempted 36 lifesaving drugs from

    BCD. From a fiscal policy angle, this measure—
    A reduces fiscal deficit automatically Correct Answer Incorrect Answer
    B improves indirect tax buoyancy Correct Answer Incorrect Answer
    C lowers customs revenue while supporting welfare Correct Answer Incorrect Answer
    D increases revenue expenditure sharply Correct Answer Incorrect Answer
    E leads to monetisation of financial assets Correct Answer Incorrect Answer

    Solution

    Exempting imports from BCD reduces customs revenue but enhances welfare by lowering cost of essential medicines.

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