Economics impacts governance, as discussed in the UPSC examinations, in multiple ways. A deep understanding of economic principles equips civil servants to make informed decisions regarding resource allocation, policy formulation, and socio-economic programs. The syllabus often covers topics like budgeting, public finance, and economic reforms, emphasizing their significance in governance. Candidates are evaluated on applying economic concepts to address pressing issues such as poverty alleviation, employment generation, and sustainable development, highlighting how economics intertwines with effective governance.