Budget 2025-26 Overview

• Historical Context of Indian Budget:
  • First budget in India presented by James Wilson (1860).
  • First post-independence budget presented by K. Shanmukham Chetty.
  • First Republic India budget presented by John Mathai.
  • Morarji Desai presented the budget a record 10 times.
  • Indira Gandhi was the first woman to present the budget.
  • Nirmala Sitharaman is the first full-time female Finance Minister and presented the budget for the 8th time on February 1.
  • The longest budget speech was delivered by Nirmala Sitharaman in 2020.
• Vision for Developed India (Viksit Bharat):
  • Eradication of poverty.
  • 100% schooling.
  • Accessible and affordable health services.
  • 100% skilled workforce.
  • 70% women's participation in economic activities.
  • India as the "Food Basket of the World."
• Budget 2025-26 Framework:
  • Destination: Developed India (Viksit Bharat).
  • Guidance: Inclusivity (Samaveshta).
  • Fuel: Reforms.
  • Four Engines: Agriculture, MSME (Micro, Small, Medium Enterprises), Investment, Exports.

Sectoral Initiatives

• Agriculture:
  • PM Dhan-Dhanya Krishi Yojana: Launched in 100 districts to increase agricultural productivity, aiming to benefit 1.7 crore farmers.
  • Pulses Self-Sufficiency Mission: A 6-year mission focusing on Toor (Arhar), Urad, and Masoor dals.
  • Makhana Board: To be established in Bihar.
  • Cotton Production Mission: A 5-year mission to boost quality cotton for the textile industry.
  • Kisan Credit Card (KCC) Limit: Increased from ₹3 lakh to ₹5 lakh.
  • Urea Plant: A new urea plant with a capacity of 12.7 lakh metric tons will be established in Namrup, Assam.
• MSME Sector:
  • Revised MSME Definition (Investment-based):
    • Micro: Up to ₹2.5 crore.
    • Small: Up to ₹25 crore.
    • Medium: Up to ₹125 crore.
  • Revised MSME Definition (Turnover-based):
    • Micro: Up to ₹10 crore.
    • Small: Up to ₹100 crore.
    • Medium: Up to ₹500 crore.
  • Special Credit Card for Micro Enterprises: A ₹5 lakh credit card launched for micro-enterprises, available on the Udyam Portal.
  • National Manufacturing Mission: To promote 'Make in India' in footwear, toy, and food processing industries.
• Investment & Social Development:
  • Atal Tinkering Labs: 500 labs to be set up in government schools over 5 years to foster interest in Science, Technology, Engineering, and Mathematics.
  • Bharatiya Bhasha Pustak Scheme: To provide digital books in Indian languages for school and higher education.
  • AI Promotion in Education: ₹500 crore allocated for AI excellence centers.
  • 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 (original end year 2024).
  • Maritime Development Fund: Government will contribute 49% of the fund.
  • UDAN Scheme: 120 new destinations to be connected in the next 10 years.
  • Greenfield Airport: To be established in Bihar.
  • West Kosi Canal Project: To be developed in Mithilanchal, Bihar.
  • Gyan Bharat Mission: To preserve over 1 crore ancient manuscripts.
• Exports:
  • Bharat Trade Net Platform: Launched to enhance supply chain efficiency for exports.
• Reforms:
  • Insurance Sector FDI: Foreign Direct Investment (FDI) limit in the insurance sector increased from 74% to 100%.

Fiscal Data and Tax Reforms

• Fiscal Deficit Estimates:
  • FY 2024-25: 4.8% of GDP.
  • FY 2025-26: 4.4% of GDP.
• Life-Saving Drugs: Tax removed on 36 life-saving drugs for rare diseases and cancer.
• New Income Tax Bill: A new income tax bill will be introduced, replacing the 1961 bill.
• Income Tax Slabs (New Regime):
  • Income 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.
• Sources of Government Revenue (Top 3):
  • Borrowings: 24%.
  • Income Tax: 22%.
  • GST: 18%.
• Government Expenditure (Top 2):
  • Share of states in taxes and duties: 22%.
  • Interest Payments: 20%.
• Sectoral Expenditure (Highest to Lowest): Defense, Rural Development, Home Ministry, Agriculture and Allied Activities.

Daily Current Affairs (13 September 2025)

International News

• Albania: Became the first country globally to appoint an AI Minister, 'Dyala', to combat corruption. Dyala means 'Sun', and its role is to manage government tenders to enhance transparency. Tirana is the capital of Albania.
• IMD World Talent Ranking 2025:
  • Released by the International Institute for Management and Development (IMD).
  • Switzerland ranked 1st.
  • India ranked 63rd.
  • India's rank in other indices: Corruption Perception Index (96), Sustainable Development Goal Index (99), Gender Gap Index (131), Human Development Index (130), Press Freedom Index (151), Peace Index (115), Happiness Index (118).

National News (India)

• Coastal Protection Project: The World Bank approved $212.64 million for the 'Shore Project' in Tamil Nadu and Karnataka to protect coastlines, reduce pollution, and prevent mangrove degradation. India's new coastal line is 11,098 km, with 9 coastal states (Gujarat has the longest, Goa the shortest). The World Bank was established in 1944 (Bretton Woods), headquartered in Washington D.C., and its current head is Ajay Banga.
• IIM Ahmedabad International Campus: Union Education Minister Dharmendra Pradhan inaugurated IIM Ahmedabad's first international campus in Dubai, UAE.
• IIT Offshore Campus: The first IIT offshore campus was opened by IIT Madras in Tanzania, with Preeti Aghalayam as its first head.
• Indian Bureau of Mines (IBM): A regional office of the Indian Bureau of Mines was opened in Ranchi, Jharkhand.
• Da Vinci Robotic System Training: AIIMS Delhi became the first government medical college in India to offer training on the Da Vinci Robotic System, used for robotic surgery, skill development, e-learning, and telemedicine.
• P.V. Narasimha Rao Award for Economics: Awarded posthumously to former Prime Minister Dr. Manmohan Singh. P.V. Narasimha Rao was Prime Minister during the 1991 New Economic Policy (LPG reforms), with Manmohan Singh as his Finance Minister. Dr. Manmohan Singh's notable book is 'Changing India'. He received the Padma Vibhushan in 1987 and served as RBI Governor and Prime Minister (2004-2014). P.V. Narasimha Rao, along with Karpoori Thakur, M.S. Swaminathan, Chaudhary Charan Singh, and L.K. Advani, received the Bharat Ratna in 2024.
• Commonwealth Parliamentary Association (CPA) India Region Conference: The 11th edition of the conference was inaugurated by Lok Sabha Speaker Om Birla in Bengaluru. The theme was "Debate and discussion in legislatures." The CPA's headquarters is in London, England (established 1911).
• Jilon ke Samagra Vikas ka Sammelan (Conference on Holistic Development of Districts): Held in Patna.
• Sepak Takraw World Cup: Held in Bihar.
• Indigenous Malaria Vaccine: The Indian government licensed private companies to produce 'AdFalsiVax', India's first indigenous multi-stage malaria vaccine. This vaccine specifically targets the Plasmodium falciparum variant of malaria. Malaria is caused by a protozoan (Plasmodium) and transmitted by the female Anopheles mosquito. Quinine (from Cinchona tree) is a traditional drug.
• Shyam Prahar Exercise: Conducted by the Indian Army in Arunachal Pradesh. Its objective is to train in using drone technology for surveillance and precision strikes. Another exercise, 'Yudh Kaushal Abhyas', also took place in Arunachal Pradesh. Arunachal Pradesh was formed in 1987 (55th Constitutional Amendment) and is covered under Article 371H of the Constitution.
• INS Aravali: The Indian Naval Ship Aravali was commissioned in Gurugram, Haryana. It is named after the Aravalli mountain range, which stretches from Gujarat, through Rajasthan and Haryana, to Delhi (Raisina Hills). The Aravalli range has a total length of 692 km, with Guru Shikhar (Mount Abu, Sirohi) as its highest peak.
• Lanja EN: A Tata-manufactured Spanish 3D surveillance radar, commissioned into the Indian Navy.
• Opium Cultivation Policy (2025-26): The central government issued an annual licensing policy for opium cultivation for Madhya Pradesh, Rajasthan, and Uttar Pradesh.