Budget 2025-26 Overview

• Presenter: Finance Minister Nirmala Sitharaman, presenting for the eighth time on February 1st.
• Historical Context:
  • First budget in India: 1860 by James Wilson (Father of Indian Budget).
  • First budget post-independence: K. Shanmukham Chetty.
  • First budget in Republican India: John Mathai.
  • Most budgets presented: Morarji Desai (10 times).
  • First female to present budget: Indira Gandhi.
  • First full-time female Finance Minister: Nirmala Sitharaman.
  • Longest budget speech: Nirmala Sitharaman (2020).
• Vision for Viksit Bharat (Developed India):
  • Freedom from poverty.
  • 100% schooling.
  • Excellent, affordable, and accessible healthcare facilities.
  • 100% skilled workforce.
  • 70% female participation in economic activity.
  • Making India the "Food Basket of the World."
• Budget's Four Engines, Fuel, Guidance, and Destination:
  • Destination: Viksit Bharat.
  • Guidance: Inclusivity.
  • Fuel: Reform.
  • Four Engines: Agriculture, MSME (Micro, Small, and Medium Enterprises), Investment, Export.

Sector-Specific Budget Details

Agriculture

• Prime Minister Dhan Dhanya Krishi Yojana: Launched in 100 districts to increase agricultural productivity; expected to benefit 1.7 crore farmers.
• Pulses Self-Sufficiency Mission: A 6-year mission focusing on Tur (Arhar), Urad, and Masoor pulses.
• Missions also started for vegetables, fruits, and Shree Anna (millets) (2023 was declared Year of Millets).
• Makhana Board: To be established in Bihar.
• National High-Yield Seed Mission: To develop high-yield seeds.
• Cotton Production Mission: A 5-year mission to boost quality cotton production and support the textile industry.
• 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, and Medium Enterprises)

• Revised Definitions (based on Investment & Turnover):
  • Investment:
    • Micro: Up to ₹2.5 crore
    • Small: Up to ₹25 crore
    • Medium: Up to ₹125 crore
  • Turnover:
    • Micro: Up to ₹10 crore
    • Small: Up to ₹100 crore
    • Medium: Up to ₹500 crore
• Credit Card for Micro Enterprises: A special credit card with a ₹5 lakh limit launched for सूक्ष्म उद्यम (micro enterprises) available on the Udyam Portal.
• National Manufacturing Mission: To be launched for the footwear, toy, and food processing industries to promote "Make in India."

Investment

• Atal Tinkering Labs: 500 new labs to be established in government schools over the next 5 years to foster interest in STEM (Science, Technology, Engineering, Mathematics).
• Indian Language Book Scheme: To provide digital books in Indian languages for school and higher education.
• National Skill Excellence Centers: Five centers to be established to promote "Make for India" and "Make for the World."
• AI Excellence Center: ₹500 crore allocated to promote Artificial Intelligence in education.
• Cancer Care: Medicines to be cheaper; a Day Care Cancer Hospital to be established in every district hospital within three years.
• Jal Jeevan Mission: Extended until 2028 (initially set to end in 2024, started in 2019).
• Maritime Development Fund: To be established with 49% government funding.
• UDAAN Scheme: Aims to discover 120 new destinations and establish connectivity over the next 10 years.
• Greenfield Airport: To be established in Bihar.
• West Kosi Canal Project: To be developed in Mithilanchal, Bihar.
• Gyan Bharatam Mission: Launched for the preservation of over 1 crore manuscripts.

Export

• Bharat Trade Net Platform: Launched to improve the supply chain for exports.

Reforms

• FDI in Insurance Sector: Foreign Direct Investment limit increased from 74% to 100%.

Tax & Fiscal Details

• Fiscal Deficit:
  • Estimated 4.8% of GDP for 2024-25.
  • Estimated 4.4% of GDP for 2025-26.
• Tax Exemptions: Tax removed from 36 life-saving drugs (for rare diseases, cancer, and serious illnesses).
• New Income Tax Regime: A new Income Tax Bill will be introduced, replacing the 1961 bill.
• Income Tax Slabs (New Regime): Income up to ₹12 lakh is tax-free.
  • ₹0-4 lakh: 0% tax
  • ₹4-8 lakh: 5% tax
  • ₹8-12 lakh: 10% tax
  • ₹12-16 lakh: 15% tax
  • ₹16-20 lakh: 20% tax
  • ₹20-24 lakh: 25% tax
  • Above ₹24 lakh: 30% tax

Revenue & Expenditure

• Sources of Revenue (where money comes from):
  1. Borrowings: 24%
  2. Income Tax: 22%
  3. GST: 18%
• Expenditure Priorities (where money goes):
  1. States' Share of Taxes and Duties: 22%
  2. Interest Payments: 20%
  3. Defence
  4. Rural Development
  5. Home Ministry
  6. Agriculture

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Other Current Affairs (August 2025 Updates)

Appointments

• Michelle Doherty: Appointed as the first woman Royal Astronomer in Britain in 350 years; advises the British monarchy on astronomy; associated with the Cassini mission.
• Vilayat Matreveli: First woman head of MI6 (British intelligence agency).
• Jayashree Venkatesan: First Indian environmentalist to win the Ramsar Award for wetland conservation.
• Dinesh Maheshwari: Appointed Chairman of the 23rd Law Commission.
  • Note: First Law Commission Chairman post-independence was M.C. Setalvad (1955).
• Sanjay Jaiswal: Appointed Chairman of the Estimates Committee (30 members, all from Lok Sabha).
• Sanjay Singhal: Appointed new head of SSB.

International Relations & Developments

• Pipprahwa Buddha Stupa Relics: Hong Kong Sothebys returned 127-year-old relics from the Pipprahwa Buddha Stupa (Uttar Pradesh) to India. Godrej Industries (Mumbai) acquired these relics.
• Kambodia & Conservation: Kambodia adopted Assam's 'Horgila Sena' conservation model (led by Purnima Devi Barman, recipient of the Whitley Award / Green Oscar and Time Magazine's Woman of the Year award) for its Tonle Sap Biosphere Reserve (the largest lake in Southeast Asia).
• Palestine Recognition: Britain and Canada announced their decision to recognize the State of Palestine.
• Baglihar Dam: India has stopped the flow of water to Pakistan from the Baglihar Dam on the Chenab River. Other dams on Chenab include Pakal Dul, Ratle, Salal, and Dulhasti.
• Operation Sindh (for Iran): An operation mentioned for Indians stranded in Iran (details were not fully clear, likely a reference to past events like Operation Kaveri).
• Tahawwur Rana Extradition: The U.S. has extradited Tahawwur Rana, an accused in the 26/11 Mumbai terror attacks, to India.

Defense & Military Exercises

• 'Divya Drishti' Exercise: Indian Army conducted this high-altitude technical demonstration exercise in Sikkim, utilizing Artificial Intelligence for communication.
• 'Bold Kurukshetra' Exercise: Conducted between India and Singapore in Jodhpur, Rajasthan.
• 'Tiger Kilowatt' Exercise: Conducted between India and the USA.
• 'Simbex' Exercise: Conducted between India and Cambodia in Pune, Maharashtra.
• 'Drone Prahar' Exercise: Conducted by the Indian Army in Arunachal Pradesh.
• 'Operation Shiv Shakti': Launched by the Indian Army in Jammu and Kashmir.

Science & Technology

• Kavach 4.0: A railway safety technology launched on the Kota-Mathura rail section. It uses RFID (Radio Frequency Identification) every 1 km to automatically apply brakes and prevent collisions.
• Green Hydrogen Plant: India's first Make in India 1 MW Green Hydrogen plant started at Deendayal Port (Kandla, Gujarat), inaugurated by Sarbananda Sonowal, Union Minister of Ports, Shipping, and Waterways.
  • Note: The National Green Hydrogen Mission targets 5 million metric tons of hydrogen production per year by 2030.
• SRY Gene Test: World Athletics mandated this gene test for all female athletes from September 1, 2025, to biologically determine sex (Y chromosome study) via cheek swab or blood test. This follows a ban on transgender athletes in female categories.
• Klyuchevskaya Sopka Volcano: An eruption occurred in this volcano in Kamchatka, Russia. It is the highest active volcano in Asia and Europe and is located in the Ring of Fire.
  • Note: The world's highest active volcano is Ojos del Salado in South America.
• Vikram 3201: ISRO developed India's first indigenous 32-bit microprocessor.
• New Solar System Discovery: Astronomers used the Atacama Large Millimeter/submillimeter Array (ALMA) and the James Webb Space Telescope to observe the birth of a new solar system.

Sports

• Dr. B.C. Roy Football Trophy (2025-26): Manipur won by defeating West Bengal 3-0 in the final held in Amritsar, Punjab. This Under-15 boys' tournament began in 1962, named after Dr. Bidhan Chandra Roy, West Bengal's second Chief Minister, whose birthday (July 1st) is National Doctor's Day.
• Santosh Trophy: Related to football.
• Durand Cup: Asia's oldest football trophy.
• Women's Premier League 2025: Mumbai Indians won the title (3rd edition).
• Kabaddi World Cup 2025: India won both Men's and Women's titles, defeating England in both finals.
• Sepak Takraw World Cup 2025: Indian men's Regu team won its first gold medal (in Bihar).
• Laureus World Sportsman of the Year 2025: Mondo Duplantis (Pole Vault).
• Doha Diamond League 2025: Neeraj Chopra won a silver medal with a throw of over 90 meters (a new record for him).
• First Khelo India Beach Games: Held in Dadra & Nagar Haveli and Daman & Diu; Manipur was the winner. The mascot was 'Pearl' (a dolphin).
• Khelo India Youth Games (7th edition): Held in Bihar, with 'Gus Singh' as the mascot. Maharashtra topped the medal tally.
• Indian Grandmasters:
  • 86th: L.R. Srihari (Tamil Nadu).
  • 88th: Divya Deshmukh, who defeated Koneru Humpy in the FIDE Chess World Cup held in Georgia.

Awards & Recognition

• Vinod Kumar Shukla (Chhattisgarh): Awarded the 59th Gyanpeeth Award for Hindi literature.
• Lata Deenanath Mangeshkar Award: Presented to Kumar Mangalam Birla.
• Yantai Penglai Airport (China): Received the Prix Versailles Award.
• M.S. Swaminathan Award for Sustainable Agriculture Day (August 7): Awarded to Maharashtra.

Other Significant Developments

• Right to Development: The Supreme Court recognized the 'Right to Development' in the Oroville Foundation case (Puducherry).
• International Hope Day: Celebrated on July 12.
• International Criminal Court: Hungary became the first European nation to withdraw from the International Criminal Court.
• President's Decision on State Bills: The Supreme Court set a three-month time limit for the President to decide on state bills reserved by the Governor (under Article 201).
• Meghnad Desai (Economist): Passed away in the UK. Born in Baroda, Gujarat, he served in the UK's House of Lords and received India's third-highest civilian award, the Padma Bhushan, in 2008.
• Full Functional Literacy State: Mizoram achieved this first, followed by Goa and Tripura.
• Amrit Stations: Prime Minister Modi inaugurated 103 Amrit Stations in Deshnoke, Bikaner.
• Electric Locomotive Plant: PM Modi inaugurated India's first 9000 HP electric locomotive plant in Dahod, Gujarat.
• Indian Coastline Length: Revised to approximately 11,98 km.
• Simlipal National Park (Odisha): Declared the 107th National Park in India.
• Madhav Tiger Reserve (Madhya Pradesh): Declared the 58th Tiger Reserve.
• K. Kasturirangan: Former ISRO Chairman and key architect of the New Education Policy 2020.
• Tashraf Chu Conservation Reserve: Located in Himachal Pradesh, spanning 10,585 sq km.
• Tiger Density: Bandipur (1st), Corbett (2nd), Kaziranga (3rd).
• Children on YouTube: Australia banned children under 16 from YouTube.