Budget 2025-26 Overview

• Presented by: Finance Minister Nirmala Sitharaman for the 8th time on February 1st.
• Historical Context:
  • First budget in India (1860): James Wilson.
  • First post-independence budget: K. Shanmukham Chetty.
  • First Republic India budget: 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 for all children.
  • Provision of excellent, affordable, and accessible healthcare facilities.
  • Creation of 100% skilled workers.
  • 70% participation of women in economic activities.
  • India to become the "Food Basket of the World."
• Budget's Four Engines, Fuel, Guide, and Destination:
  • Destination: Viksit Bharat.
  • Guide: Inclusivity (Samaveshta).
  • Fuel: Reforms.
  • Four Engines: Agriculture, MSME (Micro, Small, Medium Enterprises), Investment, Export.

Key Initiatives and Policies from Budget 2025-26

• Agriculture Sector (First Engine):
  • Prime Minister Dhan Dhanya Krishi Yojana:
    • Objective: Increase agricultural productivity.
    • Launch: 100 districts.
    • Expected to benefit 1.7 crore farmers.
  • Mission for Self-Sufficiency in Pulses:
    • Duration: 6 years.
    • Focus: Tur (Arhar), Urad, and Masoor pulses.
  • Missions for Vegetables, Fruits, and Shree Anna (Millets): Initiated.
  • Makhana Board: To be established in Bihar.
  • National High-Yield Seed Mission: To develop advanced seeds.
  • Cotton Production Mission:
    • Duration: 5 years.
    • Objective: Enhance quality of cotton to boost the textile industry.
  • Kisan Credit Card (KCC):
    • Credit 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 Sector (Second Engine):
  • Revised Definition of MSMEs (based on Investment and 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:
    • Limit: ₹5 lakh.
    • Available via the Udhyam Portal.
  • National Manufacturing Mission:
    • Objective: Boost "Make in India" in footwear, toy, and food processing industries.
• Investment Sector (Third Engine):
  • Atal Tinkering Labs:
    • Objective: Foster interest in Science, Technology, Engineering, and Mathematics (STEM) among school children.
    • Plan: 500 labs in government schools over the next 5 years.
  • Indian Language Book Scheme:
    • Objective: Provide digital books in various 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 in Education:
    • Allocation: ₹500 crore for promoting Artificial Intelligence in education.
  • Cancer Care Initiatives:
    • Reduced prices for cancer medicines.
    • Establishment of Day Care Cancer Hospitals in all district hospitals over 3 years.
  • Jal Jeevan Mission:
    • Extended until 2028 (originally set to conclude in 2024).
  • Maritime Development Fund:
    • Government to contribute 49% of the fund.
  • Udan Scheme:
    • Plan: Identify and connect 120 new destinations over the next 10 years.
  • Bihar Specific Projects:
    • Construction of a Greenfield Airport.
    • Development of the West Kosi Canal Project in Mithilanchal.
  • Gyan Bharatam Mission:
    • Objective: Preservation of over 1 crore manuscripts.
• Export Sector (Fourth Engine):
  • Bharat Trade Net Platform:
    • Objective: Improve supply chain efficiency for exports.
• Reforms (Fuel):
  • FDI in Insurance Sector: Foreign Direct Investment limit increased from 74% to 100%.
• Tax Reforms:
  • Fiscal Deficit (as % of GDP):
    • Estimated 4.8% for 2024-25.
    • Estimated 4.4% for 2025-26.
  • Life-Saving Drugs: Tax removed on 36 life-saving drugs for rare diseases, cancer, and other severe illnesses.
  • New Income Tax Regime: A new Income Tax Bill will be introduced to replace the 1961 act.
  • Income Tax Slabs (New Regime):
    • Up to ₹12 lakh: 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.
• Government Revenue Allocation (Rupee Comes From):
  • Borrowings: 24% (highest source).
  • Income Tax: 22%.
  • GST: 18%.
• Government Expenditure Allocation (Rupee Goes To):
  • States' share of taxes and duties: 22% (largest expenditure).
  • Interest Payments: 20%.
• Top Expenditure by Ministry/Sector:
  • 1st: Defence.
  • 2nd: Rural Development.
  • 3rd: Home Ministry.
  • 4th: Agriculture and Allied Sectors.

Current Affairs (General)

• Sample Registration System Statistical Report 2023:
  • Infant Mortality Rate (IMR): 25 (national average for 2023). Highest in Chhattisgarh, Madhya Pradesh, Uttar Pradesh (37); lowest in Kerala (5). Rural IMR is 28, Urban IMR is 18.
  • Total Fertility Rate (TFR): 1.9 (national average). Replacement rate is 2.1. Highest in Bihar (2.8); lowest in Delhi (1.2).
  • Sex Ratio at Birth: 917 (for 2021-23), an increase from 914 (2020-22). Highest in Chhattisgarh (974); lowest in Uttarakhand (868).
  • Elderly Population (60+ years): 9.7% of total population. Highest in Kerala (15%).
• Lithium-Ion Battery Manufacturing:
  • Japanese TDK Corporation opened its largest lithium-ion battery plant in Sohna, Haryana.
  • Inaugurated by Union Minister Ashwini Vaishnaw.
  • Capacity: 20 crore battery packs per year, for mobile phones, laptops, etc.
• Hallmarking for Silver Ornaments:
  • HUID (Hallmarking Unique Identification) made mandatory (though voluntary initially) for silver jewelry to ensure purity.
  • Regulated by the Bureau of Indian Standards (BIS) Care App.
  • Standard: ISA 2112:2025.
  • Ministry: Consumer Affairs Ministry.
• World Youth Scrabble Championship 2025:
  • Held in Kuala Lumpur, Malaysia.
  • Winner: Madhav Gopal Kamat (Delhi), becoming the first Indian champion.
• Social Media Restrictions:
  • Nepal banned 26 unregistered social media sites (including Facebook, WhatsApp, Instagram, YouTube) for not having local offices.
  • Australia previously imposed a ban on social media for children under 16 years of age.
• Health AI Global Regulatory Network:
  • India joined this network aimed at regulating the use of Artificial Intelligence in the health sector.
  • Headquarters: Geneva, Switzerland.
• Manipur Peace Agreement:
  • A peace agreement was signed on September 4 between the Ministry of Home Affairs, the Manipur Government, and the Kuki-Zo community.
  • Objective: Maintain regional integrity and ensure free movement on National Highway 2 (connecting Manipur to Nagaland) following ethnic violence between Kuki and Meitei communities since 2023.
• Saras Aajeevika Mela (27th Edition):
  • Organized by the Union Ministry of Rural Development in New Delhi (Major Dhyanchand Stadium).
  • Theme: Dedicated to "Lakhpati Didis" (successful rural women entrepreneurs), promoting "Vocal for Local."
• Integrated RERA Portal:
  • Launched by the Ministry of Housing and Urban Affairs (Minister Manohar Lal Khattar).
  • Objective: Enhance transparency and accountability in the real estate sector, under the Real Estate Regulation and Development Act, 2016.
• Royal Bhutan Buddhist Temple:
  • Inaugurated by Union Minority Affairs Minister Kiren Rijiju in Rajgir, Nalanda district, Bihar.
• Ukraine Military Deployment:
  • 26 Western allied countries pledged to deploy troops in Ukraine after the conclusion of the Russia-Ukraine conflict.

Additional Current Affairs Points (Rapid Fire Answers):

• U19 Women's Cricket World Cup Winner: South Africa (defeated India).
• Artificial Sun (EAST): China.
• Tata Steel Chess Masters 2025 Winner: R. Praggnanandhaa.
• Apium indicum (new species): Fungus (discovered by BHU).
• Exercise Aquarin (India-Maldives).
• Declaring AI-generated child abuse content a crime: England.
• First AI University in India: Maharashtra.
• First White Tiger Breeding Center: Madhya Pradesh.
• India's rank in global domestic air cargo: 1st.
• UN Global Compact Initiative Participant: GMR Airport.
• Indian Army's Vijay Durg Command: Kolkata (formerly Fort William).
• Country withdrawing WHO membership after USA: Argentina.
• 38th Surajkund National Mela: Faridabad, Haryana.
• First city to declare begging an offense: Indore.
• CM N. Biren Singh's resignation due to President's Rule: Manipur (Governor Ajai Kumar Bhalla).
• Artificial photosynthesis for rocket fuel oxygen in space: China.
• Operation Devil Hunt: Bangladesh (arresting individuals linked to Sheikh Mujibur Rahman).
• Exercise Cyclone (India-Egypt): Rajasthan.
• Sam Nujoma (founder & first president): Namibia (capital Windhoek).
• Netpac Award at Rotterdam International Film Festival: "Badgal" (film).
• Srijanam (Automated Biomedical Waste Treatment Plant): Delhi.
• World's first carbon-neutral baby (2-year-old): Tamil Nadu.
• Lok Sabha translation services for all 22 constitutional languages: Included Bodo, Dogri, Maithili, Manipuri, Sanskrit, Urdu.
• "I Am" book: Gopichand Hinduja.
• MAGA (Make America Great Again) + MIGA (Make India Great Again) campaign: PM Modi.
• Varun Sagar Lake (formerly Foysagar): Ajmer, Rajasthan.
• 50,000 km Water Worth Subsea Cable Project (India-USA): Announced by Meta.
• 8th Indian Ocean Conference: Muscat, Oman.
• Committee for New Income Tax Act (to be implemented from April 1, 2026): Headed by Vajen Panda.
• UK's "The Most Excellent Order of the British Empire" award: N. Chandrasekaran.
• Thiruvalluvar statue unveiling (75th anniversary of diplomatic relations): Philippines.
• Exercise Dharma Guardian (India-Japan).
• BAAL-2 (Indigenous AI tools for Indian languages): IIT Jodhpur.
• Vrindavan Vastra (Vaishnav Saint Shankar Dev's historic textile): Returning from Britain.
• Northeastern Aviation Summit: Arunachal Pradesh.
• Jnanpith Award (for Hindi writer Vinod Kumar Shukla): Chhattisgarh.
• BAFTA 2025 Best Film Award: "Conclave."
• Matsya 6000: Submarine for deep-sea human exploration.
• India's first Global Capability Center (GCC): Madhya Pradesh.
• Grok-3 AI model launch: X (by Elon Musk).