Budget 2024-25/2025-26 Overview

• Historical Context:
  • First budget in India: James Wilson (1860).
  • First post-independence budget: K. Shanmukham Chetty.
  • First Republic India budget: John Mathai.
  • Most budgets presented: Morarji Desai (10 times).
  • First female to present: Indira Gandhi.
  • First full-time female Finance Minister: Nirmala Sitharaman.
  • Longest budget speech: Nirmala Sitharaman (2020).
• Current Budget Presentation:
  • Finance Minister Nirmala Sitharaman presented her 8th budget.
  • Presented on February 1st.
• "Viksit Bharat" (Developed India) Objectives:
  • Freedom from poverty.
  • 100% schooling.
  • Excellent, affordable, and accessible healthcare.
  • 100% skilled workforce.
  • 70% women's participation in economic activity.
  • India as the Food Basket of the World.
• Budget Journey Framework:
  • Destination: Viksit Bharat.
  • Guide: Inclusivity (समावेशता).
  • Fuel: Reforms (सुधार).
  • Four Engines: Agriculture, MSME, Investment, Export.

Sectoral Initiatives & Policies

• Agriculture:
  • PM Dhan Dhanya Krishi Yojana: Launched in 100 districts to increase agricultural productivity, benefiting 1.7 crore farmers.
  • Pulses Self-Sufficiency Mission: 6-year mission focusing on Tur (Arhar), Urad, and Masoor.
  • Makhana Board: To be established in Bihar.
  • National High Yielding Seed Mission: For developing high-yield seeds.
  • Cotton Production Mission: 5-year mission to enhance quality cotton production.
  • Kisan Credit Card (KCC) Limit: Increased from ₹3 Lakh to ₹5 Lakh.
  • Urea Plant: To be established in Namrup, Assam, with a production capacity of 12.7 lakh metric tons.
• MSME (Micro, Small, Medium Enterprises):
  • Revised Definitions:
    • Investment-based: Micro (up to ₹2.5 Cr), Small (up to ₹25 Cr), Medium (up to ₹125 Cr).
    • Turnover-based: Micro (up to ₹10 Cr), Small (up to ₹100 Cr), Medium (up to ₹500 Cr).
  • Credit Card for Micro Enterprises: ₹5 Lakh limit, available on Udyam Portal.
  • National Manufacturing Mission: To promote 'Make in India' in footwear, toy, and food processing industries.
• Investment & Development:
  • Atal Tinkering Lab (ATL): 500 ATLs to be established in government schools over 5 years to boost interest in STEM.
  • Indian Language Book Scheme: Digital books in Indian languages for school and higher education.
  • National Skill Excellence Centers: 5 centers for skill development, focusing on 'Make for India' and 'Make for the World'.
  • AI Excellence Center: ₹500 Crore allocated to promote AI in education.
  • Cancer Care:
    • Cheaper cancer medicines.
    • Daycare Cancer Hospitals in all district hospitals within 3 years.
  • Jal Jeevan Mission: Extended until 2028 (originally 2024).
  • Maritime Development Fund: Government to contribute 49%.
  • UDAN Scheme: 120 new destinations to be explored for air connectivity in the next 10 years.
  • Greenfield Airport: To be established in Bihar.
  • West Kosi Canal Project: To be developed in Mithilanchal, Bihar.
  • Gyan Bharatam Mission: To conserve over 1 crore ancient manuscripts.
• Exports:
  • India Trade Net Platform: Launched to improve supply chain in exports.
• Reforms (as Fuel):
  • FDI in Insurance Sector: Increased from 74% to 100%.

Fiscal & Tax Reforms

• Fiscal Deficit (as % of GDP):
  • Estimated 4.8% for 2024-25.
  • Estimated 4.4% for 2025-26.
• Life-Saving Medicines: Tax removed on 36 life-saving medicines (for rare diseases, cancer, serious illnesses).
• New Income Tax Regime: A new Income Tax Bill has been introduced to replace the 1961 act.
• Income Tax Slabs (New):
  • Income up to ₹12 Lakh: Tax-free.
  • ₹0-4 Lakh: 0%
  • ₹4-8 Lakh: 5%
  • ₹8-12 Lakh: 10%
  • ₹12-16 Lakh: 15%
  • ₹16-20 Lakh: 20%
  • ₹20-24 Lakh: 25%
  • Above ₹24 Lakh: 30%
• Government Revenue Sources (Top 3):
  • Borrowings: 24%
  • Income Tax: 22%
  • GST: 18%
• Government Expenditure Allocation (Top 4):
  • States' Share of Taxes and Duties: 22%
  • Interest Payments: 20%
  • Defense: Highest spending.
  • Rural Development: Second highest.
  • Home Ministry: Third highest.
  • Agriculture: Fourth highest.

Recent Current Affairs

• Mumbai Airport: Ranked 9th in Travel + Leisure World's Best Awards 2025 (Top 10 for third consecutive year), based on technology, passenger satisfaction, and infrastructure. Istanbul Airport (Turkey) ranked 1st.
• Economic Projections: Morgan Stanley projects India to be the world's 3rd largest economy by 2028, surpassing Japan and Germany. NITI Aayog states India is currently 4th, having surpassed Japan.
• National Income Tax Day 2025: Celebrated on July 24th, commemorating James Wilson's introduction of income tax in India on July 24, 1860.
  • Income tax is a direct tax.
  • GST Day: Celebrated on July 1st, marking the implementation of the 101st Constitutional Amendment (2016) on July 1, 2017. GST is an indirect tax.
  • First International Judicial Welfare Day: Celebrated on July 25th for the first time.
• Internet Speed: Ookla Speedtest ranks India 26th globally in average internet connection speed. India is the largest data consumer worldwide (average 32 GB/person/month).
• CO2 to Sugar Conversion: Chinese scientists successfully converted CO2 into sugar using methanol (CH3OH) via a bioreformation system, achieving an 86% conversion rate.
• Samudra Prachet: Goa Shipyard Limited launched this indigenous pollution control vessel for the Indian Coast Guard from Vasco, Goa. It is the second and final vessel of its kind, designed to manage oil spills (the first was Samudra Pratap).
  • Indian Coast Guard (ICG) established on Feb 1, 1977, based on the Rustamji Committee. Its current DG is Rakesh Pal.
• Ratan Thiyam: The Manipuri pioneer of the "Theatre of Root" movement and Padma Shri recipient passed away at 77. His famous play was Chakravyuh.
• Ambrosia Beetle in Kerala: This insect has severely affected rubber plantations in Kerala, causing damage to trees and reducing latex production by tunneling and introducing fungi. It previously impacted cashew crops in Goa.
  • Rubber is a polymer of Isoprene. Its vulcanization involves sulfur. The Amazon rainforest is its original habitat. Thailand is the leading global producer.
• Ashoka Pillar Replica in Sri Lanka: A replica of an Ashoka Pillar was unveiled in Baskaduga (Vasakadduwa), Sri Lanka, at a Buddhist temple. This signifies Emperor Ashoka's historical role in spreading Buddhism to Sri Lanka through his son Mahinda and daughter Sanghamitra.
  • Ashoka's 13th Major Rock Edict mentions the Kalinga War, and the 1st condemns animal sacrifice.
• Ethanol Blending in Petrol: Union Minister Hardeep Singh Puri announced India achieved a 20% ethanol blend in petrol, 5 years ahead of its 2030 target. This initiative aims to benefit the environment, support farmers (by increasing demand for sugarcane/corn waste), and reduce crude oil import dependence.
• World Food India 2025: The 4th edition will be held at Bharat Mandapam in New Delhi, organized by the Ministry of Food Processing. The theme is "Processing for Prosperity."

Other Mentions (Various Topics)

• ICC Hall of Fame: MS Dhoni became the 11th Indian cricketer inducted.
• G7 Summit 2025: To be hosted by Canada.
• MSC Arena: World's largest container ship arrived at Vizhinjam Port, Kerala.
• GDP Base Year: New base year set as 2022-23.
• Global Gender Gap Report: India's rank is 131.
• DFCC Bank (Sri Lanka): First foreign bank to launch a Green Bond in GIFT IFSC.
• UEFA Nations League 2024-25: Won by Portugal.
• Strawberry Moon: Celestial event occurred on June 10-11 night.
• UN Ocean Conference 2028: To be hosted by Chile and South Korea (2025 was France).
• Operation Rising Lion: Israel's operation against Iran.
• Operation True Promise: Iran's operation against Israel.
• Operation Midnight Hammer: US operation against Iran's nuclear sites.
• Lokpal: Motto is "Citizens Empowered, Corruption Uncovered." Current head is Justice Ajay Manikrao Khanwilkar (former head: P.C. Ghose).
• Withuth Program: Environmental restoration program launched by Kerala.
• ICPB 2544: Heat-tolerant pigeon pea (Arhar) variety developed by ICRISAT.
• Shankardev Award 2023: Awarded to Sonal Mansingh.
• AC Cooling Limit: India government set a cooling limit of 20-28 degrees Celsius for ACs in homes, hotels, and cars.
• Exercise Shakti, Varun, Garud: Joint military exercises between India and France.
• Rudraksh VTOL Drone: Indian Army tested this vertical takeoff and landing drone in Rajasthan.
• eSports World Cup 2025 Global Ambassador: Cristiano Ronaldo.
• PM Modi's Historic Visit: First Indian PM to visit Croatia (Zagreb).
• South Pars Gas Field: World's largest gas field located in Iran.
• Grand Cross of Makarios III: Highest civilian honor of Cyprus awarded to PM Modi (also received awards from Ghana, Trinidad & Tobago, Brazil, Namibia).
• Air India AI171 Crash Investigation: Led by Govind Mohan (Home Secretary of India).
• Food Planet Prize: Awarded to NitroCaps (Sweden).
• International Yoga Day Host: Visakhapatnam hosted the 10th anniversary celebrations.
• International Big Cat Alliance: Dr. Bhupendra Yadav (Environment and Forest Minister) appointed as its first chairman.
• Armand Duplantis: Broke his 12th world record in pole vault (6.28m).
• Portulaca: New flowering plant species discovered in Aravalli mountain range, Jaipur, Rajasthan.
• Ozofeni GI Tag: Awarded to Ozofeni from Goa.
• Gati Shakti Cargo Terminal: India's largest inaugurated in Manesar, Haryana by Union Rail Minister Ashwini Vaishnaw.
• Henley Passport Index: India's rank is 77.
• National Broadcasting Day: Celebrated on July 23.
• Olympic/Paralympic Gold Medal Cash Award: Delhi announced ₹7 crore for gold medalists (₹5 Cr for silver, ₹3 Cr for bronze).
• National Cooperative Policy 2025: Replaces the 2002 policy.
• Magicians' Oscar Award: Awarded to Suhani Shah (from Italy).
• Mining Tourism Project: Launched by Jharkhand.
• MiG-21: Fighter jet officially retired.
• Manjhi Vasundhara Yojana: Launched in Maharashtra.
• Geothermal Plant: India's first fully indigenous 50 kW geothermal plant in Arunachal Pradesh.