Union Budget 2025-26 Analysis

This solution analyzes the statements concerning the Union Budget 2025-2026 to determine the correct combination.

Budget Statement A: FDI Limit for Insurance

Statement A suggests the Foreign Direct Investment (FDI) limit for the insurance sector is raised from 74 percent to 100 percent. This is considered a correct announcement in the budget.

Budget Statement B: FDI Limit for Insurance (Alternative)

Statement B proposes a raise in the FDI limit for the insurance sector from 51 percent to 74 percent. This statement contradicts the change mentioned in Statement A and is considered incorrect based on the budget announcements.

Budget Statement C: Investment Friendliness Index

Statement C announces the formation of an 'Investment Friendliness Index' for states. This initiative is considered a correct policy measure included in the budget.

Budget Statement D: Fiscal Deficit Estimate

Statement D estimates the fiscal deficit at 4.4 percent of the Gross Domestic Product (GDP). This projection is considered accurate according to the budget details. The fiscal deficit is calculated as:

$ \text{Fiscal Deficit} = \frac{(\text{Total Government Expenditure} - \text{Total Revenue})}{ \text{GDP} } \times 100 $

In this case, the estimated value is \( 4.4\% \) of GDP.

Correct Combination of Statements

Based on the analysis, the correct statements from the Union Budget 2025-2026 are A, C, and D.

• Statement A: FDI limit raised from 74% to 100%.
• Statement C: Investment Friendliness Index to be formed.
• Statement D: Fiscal deficit estimated at 4.4% of GDP.

Therefore, the correct option includes statements A, C, and D only.