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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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