Budget 2025-26 Overview

Budget History

• First Budget in India: Presented by James Wilson in 1860, considered the father of budget in India.
• First Budget Post-Independence: Presented by K. Shanmukham Chetty.
• First Budget of Republic India: Presented by 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).

Budget 2025-26 Key Highlights

• Finance Minister Nirmala Sitharaman presented her 8th budget.
• Presented on February 1.

Vision for Developed India (Viksit Bharat)

• Freedom from poverty.
• 100% schooling.
• Affordable and accessible healthcare.
• 100% skilled workforce.
• 70% women participation in economic activity.
• India as the 'Food Basket of the World'.

Journey to Developed India Framework

• Destination: Developed India.
• Guide: Inclusivity (Samaveshta).
• Fuel: Reforms.
• Four Engines: Agriculture, MSME (Micro, Small, Medium Enterprises), Investment, Export.

First Engine: Agriculture

• PM Dhan-Dhanya Krishi Yojana:
  • Aim: Increase agricultural productivity.
  • Scope: Started in 100 districts, expected to benefit 1.7 crore farmers.
• Pulses Self-Reliance Mission:
  • Duration: 6 years.
  • Focus: Tur (Arhar), Urad, and Masoor dals.
• Missions: Started for Vegetables, Fruits, and Shree Anna (Millets).
• Makhana Board: To be established in Bihar.
• National High-Yield Seed Mission: To develop high-yield seeds.
• Cotton Production Mission:
  • Duration: 5 years.
  • Aim: Boost quality cotton production for 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.

Second Engine: MSME

• Revised Definition (based on Investment & Turnover):

  Category	Investment (₹)	Turnover (₹)
  Micro	Up to 2.5 crore	Up to 10 crore
  Small	Up to 25 crore	Up to 100 crore
  Medium	Up to 125 crore	Up to 500 crore

• Special Credit Card for Micro Enterprises:
  • Limit: ₹5 lakh.
  • Availability: On Udyam Portal.
• National Manufacturing Mission:
  • Aim: Promote manufacturing (Make in India).
  • Focus: Footwear, Toys, and Food Processing industries.

Third Engine: Investment

• Atal Tinkering Lab:
  • Aim: Foster interest in Science, Technology, Engineering, and Mathematics (STEM) among school children.
  • Plan: 500 labs to be established in government schools over the next 5 years.
• Indian Language Book Scheme: Provide digital books in local Indian languages for school and higher education.
• National Skill Excellence Centers: 5 centers to be established, focusing on "Make for India, Make for the World."
• AI Excellence Center in Education: ₹500 crore allocated.
• Cancer Care:
  • Cancer medicines made cheaper.
  • Day care cancer hospitals to be established in all district hospitals within 3 years.
• Jal Jeevan Mission: Extended until 2028.
• Maritime Development Fund: Government to contribute 49% of funds.
• UDAN Scheme: Aims to explore 120 new destinations and establish connectivity over the next 10 years.
• Bihar Projects:
  • Greenfield Airport to be established.
  • West Kosi Canal Project in Mithilanchal to be developed.
• Gyan Bharatam Mission: Launched for the conservation of over 1 crore manuscripts.

Fourth Engine: Export

• India Trade Net Platform: Launched to improve export supply.

Reforms (Fuel for Engines)

• Insurance Sector FDI Limit: Increased from 74% to 100%.

Tax Reforms & Fiscal Data

• Fiscal Deficit Estimate:
  • 2024-25: 4.8% of GDP.
  • 2025-26: 4.4% of GDP.
• Tax Exemption: Tax removed from 36 life-saving drugs (for rare diseases, cancer, serious illnesses).
• New Income Tax Regime: A new bill to be introduced, replacing the 1961 bill.
• New Tax Slabs:
  • 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 (Rupee Comes From)

1. Borrowing: 24%
2. Income Tax: 22%
3. GST: 18%

Government Expenditure (Rupee Goes To)

1. States' Share in Taxes & Duties: 22%
2. Interest Payments: 20%

Sector-wise Expenditure (Highest to Lowest)

1. Defense
2. Rural Development
3. Home Ministry
4. Agriculture

Current Affairs News

Global MS Swaminathan Award 2025

• First global award.
• Recipient: Dr. Ademola Adedunle from Nigeria.
• Reason: For efforts to end hunger in Nigeria.
• Context: Initiated on MS Swaminathan's 100th birth anniversary (August 7, 1925).
• MS Swaminathan (Indian Context):
  • Known as: Father of the Green Revolution in India.
  • Autobiography: "The Man Who Fed India," written by Priyavanda Jai Kumar (Singapore).
  • Awards:
    • Padma Shri: 1967
    • Padma Bhushan: 1972
    • Padma Vibhushan: 1989
    • Bharat Ratna: 2024 (posthumously)
  • Green Revolution in India: Primarily focused on Wheat.
  • Global Context: Norman Borlaug is the father of the Green Revolution worldwide. The term "Green Revolution" was coined by William Gaud.
• Nigeria: Known as the "Palm Oil Country," most populous country in Africa, capital is Abuja.

38th Bogota International Book Fair 2026

• Host City: Bogota, Colombia.
• Guest of Honor: India.
• Significance: India's National Book Trust (NBT) first participated in the 37th edition.
• Colombia: A South American nation, named after Christopher Columbus.

Capacity Building Commission (CBC)

• New Chairman: S. Radha Chauhan (retired IAS officer).
• Establishment: April 1, 2021, under Mission Karmayogi.
• Mission Karmayogi Objective: To make Indian bureaucracy more accountable, transparent, and citizen-centric.

District Flood Severity Index (DFSI)

• Launched by: IIT Delhi and IIT Gandhinagar.
• Purpose: To assess the severity of flood impacts (loss of life, property, and infrastructure) in districts.
• Top 3 Most Affected Districts:
  1. Patna, Bihar
  2. Murshidabad, West Bengal
  3. Thane, Maharashtra
• Highest Flood Incidents: Thiruvananthapuram (over 231 incidents, averaging more than 4 per year).

India's First I-STEM Catalyst Center

• Established by: NIT Calicut.
• Aim: To develop advanced scientific infrastructure and promote innovation, startups, and research in Science, Technology, Engineering, and Mathematics (STEM) fields.

Top Exporting State (FY 2024-25)

• Source: Federation of Indian Export Organizations (FIEO), established in 1965 by the Ministry of Commerce.
• Rankings:
  1. Gujarat: ₹9.83 lakh crore exports (26.6% of national exports).
     • Top within Gujarat: Jamnagar (primarily petroleum and refined products).
  2. Maharashtra: ₹5.57 lakh crore exports.

Fortune's 2025 Most Powerful Business People

• Rankings:
  1. Jensen Huang: CEO and Founder of NVIDIA (USA). NVIDIA is the largest public company in the USA, recognized for its work in AI.
  2. Satya Nadella: CEO of Microsoft.
  3. Mark Zuckerberg: Head of Meta (Facebook, Instagram, WhatsApp).
  • Notable Inclusion (8th spot): Sam Altman, founder of ChatGPT.
  • Mukesh Ambani (Reliance Industries): Ranked 56th.

Government e-Marketplace (GeM)

• 9th Foundation Day: Celebrated on August 8, 2025.
• Establishment: August 8, 2016.
• Slogan: "Minimum Government, Maximum Governance" (न्यूनतम सरकार, अधिकतम शासन).
• Theme for 2025: "Sugamta, Pahunch, Samaveshan" (Ease, Reach, Inclusion).
• Historical Significance of August 9:
  • August 9, 1925: Kakori Train Action (formerly Kakori Train Dacoity).
  • August 9, 1942: Quit India Movement (Operation Zero Hour started August 8).
  • August 9, 1945: Nagasaki Day (atomic bombing by USA).

UN Women's C-LEADS Second Program

• Second Edition.
• Venue: New Delhi.
• Inaugurated by: Annapurna Devi, Minister for Women and Child Development.
• Discussion: Focused on the 106th Nari Shakti Vandan Adhiniyam, which reserves 33% of seats for women in Lok Sabha and state assemblies.

ICMR's SIGHN (Science for Inquiring Minds and Health Nurturing) Initiative

• Launched by: Indian Council of Medical Research (ICMR).
• Aim: To prepare 13,500 students from Class 9 to 12 to become future scientists.

Tata Autocomp Acquisition

• Acquired: 100% of IAC Group from Slovakia.
• IAC Group: A Slovakian automotive industry company.
• Significance: Marks Tata's entry into the European automotive industry.
• Slovakia Capital: Bratislava.
• Tata's Past Acquisition: Acquired Jaguar Land Rover in 2008.

NCERT Curriculum Changes

• New chapters to be included in the curriculum focusing on patriotism and key historical figures:
  • Field Marshal Sam Manekshaw (India's first Field Marshal).
  • Brigadier Mohammad Usman (awarded Maha Vir Chakra posthumously).
  • Major Somnath Sharma (first recipient of Param Vir Chakra posthumously).