Fiscal Federalism & Developmental Budgeting (2025-27): UPSC Current Affairs Analysis & Study Strategy

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GS-2GS-316 sub-themes · 67 news items

Key Takeaways

  • The 2025-27 budgets prioritize 'CapEx-led growth' (₹11.2L Cr) over 'social-expenditure-led inclusion'.
  • Competitive Federalism is becoming institutionalized through NITI Aayog's fiscal and export indices.
  • Health remains a structural fiscal deficit, with Union spending retreating relative to NHP 2017 targets.
  • Decarbonization (CCUS) and digital gaming (AVGC) are the new industrial frontiers in the 'Viksit Bharat' roadmap.

In-Depth Analysis

The Big Picture

The fiscal landscape of 2025-26 reveals a dual transition: a move from pandemic-induced fiscal expansion back toward consolidation (targeting a 4.4% deficit), and a shift in state-level governance from entitlement-based funding to performance-linked competition. While the Union government is driving capital expenditure (CapEx) to a record ₹11.21 lakh crore, there is a mounting structural tension in social sectors like health, where federal spending is retreating even as policy targets remain unmet.

Cross-Theme Insight

Together, these threads expose a 'Scissors Effect' in Indian fiscal federalism. While the Union government achieves high tax buoyancy (GST record ₹2.37 lakh crore in April 2025) and enforces fiscal discipline through NITI Aayog's Fiscal Health Index, it is simultaneously reducing its share of public health expenditure. This forces states like Bihar and Maharashtra to navigate a 'Challenge Mode' environment—where they must compete for urban development funds (CERs) and industrial clusters (Chemical Parks) while bearing the brunt of rising out-of-pocket health costs.

Textbook vs Reality Gap

Static textbooks cite the National Health Policy (NHP) 2017 target of 2.5% GDP spending by 2025 (Vivek Singh, p. 257) and the NK Singh Committee's recommendation of 20% debt-to-GDP for states (Laxmikanth, p. 116). Reality, however, shows 'financial hyper-centralisation' where the Union's health share is actually decreasing, and states like Bihar are outpacing national growth (14.9% vs 12%) yet struggling with infrastructure gaps. Furthermore, the FRBM Act 2003 static targets (0.3% annual FD reduction) have been superseded by a more flexible, post-pandemic glide path targeting 4.5% by FY26.

How This Theme Is Evolving

The 2025-26 cycle marks the maturation of 'Incentivized Federalism,' where NITI Aayog indices (EPI, SDG, FHI) have evolved from mere data points to primary drivers of state policy, as seen in Bihar's 2025 Investment Package and Maharashtra's energy efficiency focus.

UPSC Exam Intelligence

Previous Year Question Pattern

Recent IAS and CAPF exams have shifted from basic budgetary procedures (Art 113) to specific fiscal indicators and federal institutions. For instance, IAS 2024 (NID 6224) tested the President's recommendation for grants, while CAPF 2025 (NID 9677) precisely targeted the 4.4% fiscal deficit estimate, indicating that aspirants must track exact budgetary targets and NITI Aayog's evolving composite indices.

Probable Prelims Angles

  • Article 113: No demand for a grant can be made without the President's recommendation.
  • GST Council (Art 279A): Decision-making weightage (1/3rd Centre, 2/3rd States; 75% majority required).
  • Specific Budget 2026-27 allocations: ₹20,000 cr for Carbon Capture (CCUS) and ₹10,000 cr for 'Champion SMEs'.
  • NITI Aayog SDG Index pillars: 17 goals, with Kerala consistently leading as a top performer.
  • City Economic Regions (CERs): Allocation of ₹5,000 crore per region over five years via 'Challenge Mode'.

Mains Answer Framework

  • India's fiscal policy for FY26-27 represents a strategic 'pivot' from emergency survival to 'Viksit Bharat' infrastructure building, characterized by record CapEx and competitive federalism.
  • Fiscal Consolidation: Achievement of tax buoyancy through record GST collections (₹2.37L Cr) vs the challenge of reducing the deficit to 4.5%.. The Health Expenditure Gap: Analysis of the 2.5% GDP target failure and the resultant fiscal pressure on State budgets.. Industrial Diversification: Strategic shift towards sunrise sectors like AVGC (2 million jobs target) and decarbonization (CCUS scheme).
  • Sustainable growth requires bridging the gap between high-tech industrial incentives and the grassroots deficit in primary healthcare funding to ensure inclusive development.

Essay Connections

  • 'Competitive Federalism: A Race to the Top or a Widening Divide?' — Use the NITI Aayog FHI vs. State health spending deficits as a core argument.

Preparation Strategy

Reading Approach

Begin with Laxmikanth's Parliament chapter to master the 'Money Bill' and 'Demands for Grants' framework. Then, integrate Vivek Singh's Fiscal Policy section to understand the FRBM targets. Finally, apply these to the 2025-27 budget threads to see how 'soft' targets (NHP 2017) are being sacrificed for 'hard' targets (Fiscal Deficit 4.5%).

Textbook Roadmap

  • Laxmikanth, Chapter 23: Parliament > Stages in Enactment > p. 253. Thread 4 (Legislative Approvals) and Thread 14 (Ministry Planning). Detailed procedure for Voting on Demands for Grants and Appropriation Bill.
  • Nitin Singhania, Chapter 5: Indian Tax Structure > p. 94. Thread 10 and 15 (GST Performance). Constitutional provisions for GST (101st Amendment) and GST Council powers.
  • Vivek Singh, Chapter 4: Government Budgeting > p. 156-157. Thread 13 (Fiscal Health). FRBM Act 2003 history and the NK Singh Committee debt-to-GDP targets.

Revision Bullets

  • Fiscal Deficit Target FY26: 4.4% of GDP (as per CAPF 2025 PYQ).
  • GST Record: ₹2.37 lakh crore in April 2025 (12.6% YoY growth).
  • Health Budget FY27: ₹1,06,530.42 crore (10% increase, yet below 2.5% GDP target).
  • Carbon Capture (CCUS) Allocation: ₹20,000 crore in Budget 2026-27.
  • Bihar GSDP Growth 2024-25: 14.9% (vs National 12.0%).
  • SME Champion Scheme: ₹10,000 crore allocation.
  • SDG India Index Top Performers: Kerala, Tamil Nadu, Himachal Pradesh.

Sub-Themes and News Coverage (16 themes, 67 news items)

Union Budget 2025-26: Sectoral Allocations and Policy Analysis

Focus: Comprehensive breakdown of the Union Government's FY 2025-26 fiscal policy, covering specific sectoral allocations (Gender, Agriculture, Environment) and expert analysis.

UPSC Value: Useful for understanding the holistic policy priorities of the Central Government for FY26, particularly the emphasis on Gender Budgeting and Agriculture.

12 news items in this theme:

  • 2026-02-20 [Economy] — Gender Budget Statement 2026-27
    In the Union Budget 2026-27, the Gender Budget Statement (GBS) reached a record ₹5.01 lakh crore, an 11.55% increase over last year, raising its share to 9.37% of total expenditure. 53 Ministries and five UTs reported allocations, with Part B (at least 30% women-beneficiaries) constituting 72.54% of the budget. The LPG Scheme saw a significant increase of ₹9,200 crore this year.
    More details

    UPSC Angle: Gender Budget Statement 2026-27 reaches record ₹5.01 lakh crore.

    Key Facts:

    • The Gender Budget Statement (GBS) reached ₹5.01 lakh crore in 2026-27.
    • The Gender Budget share in the total Union Budget increased to 9.37% in FY 2026-27 from 8.86% in FY 2025-26.
    • Part B (at least 30% women-beneficiaries) constitutes 72.54% of the budget.
    • 53 Ministries and 5 Union Territories reported their gender-specific allocations.
  • 2025-12-27 [Economy] — India's Agricultural Sector in 2025: Key Highlights
    In 2025, agriculture and allied activities contributed nearly 16% to India's GDP and supported livelihoods for over 46% of the population. The Union Budget 2025–26 allocated ₹1.52 lakh crore to agriculture and allied sectors, focusing on research, infrastructure, and farmer welfare. The year 2025 marked a transformative milestone for India's agricultural sector due to policy continuity, institutional reforms, and strategic investments.
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    UPSC Angle: Agriculture's contribution to GDP and budget allocation.

    Key Facts:

    • Agriculture contributed nearly 16% to India's GDP.
    • Supported livelihoods for over 46% of the population.
    • Union Budget 2025–26 allocated ₹1.52 lakh crore to agriculture.
    • Agriculture contributed nearly 16% to India's GDP in 2025.
    • It supported livelihoods for over 46% of the population.
    • The Union Budget 2025–26 allocated ₹1.52 lakh crore to agriculture.
  • 2025-12-20 [Schemes & Programs] — Indian Government Schemes Launched/Announced in 2025
    In 2025, the Indian government has launched a series of transformative initiatives aimed at accelerating the Viksit Bharat vision, focusing on employment generation, agriculture, education, housing, and gig economy welfare. Key launches include the PM Viksit Bharat Rozgar Yojana for job creation, the Gig Workers Scheme, and rural reforms increasing MGNREGA guaranteed work to 125 days.
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    UPSC Angle: Government launched initiatives in 2025 for Viksit Bharat vision.

    Key Facts:

    • PM Viksit Bharat Rozgar Yojana
    • Gig Workers Scheme
    • MGNREGA
    • 125 days
    • Union Budget 2025
    • PM Dhan-Dhaanya Krishi Yojana
    • Bharatiya Bhasha Pustak Scheme
    • Rs 99,446 crore for 3.5 crore jobs
    • Ministry of Rural Development increases MGNREGA guaranteed days from 100 to 125
    • Rs 1.51 lakh crore outlay for rural development
  • 2025-09-24 [Schemes & Programs] — Government Schemes in Union Budget 2025
    The Union Budget 2025 proposed several new government schemes, including the Prime Minister Dhan-Dhaanya Krishi Yojana, Rural Prosperity and Resilience Programme, and Aatmanirbharta in Pulses. It also included the Saksham Anganwadi and Poshan 2.0 Programme to provide nutritional support.
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    UPSC Angle: Union Budget 2025 proposed new schemes.

    Key Facts:

    • Prime Minister Dhan-Dhaanya Krishi Yojana
    • Rural Prosperity and Resilience Programme
    • Aatmanirbharta in Pulses
    • Saksham Anganwadi and Poshan 2.0
    • Bharatiya Bhasha Pustak Scheme
    • Social Security Scheme for Welfare of Online Platform Workers
  • 2025-09-09 [Economy] — Government Support for Cotton Industry in India
    The Union government has raised the MSP for cotton for the 2025–26 season and expanded procurement efforts to support farmers and stabilize the textile industry. This move addresses rising imports and the need to safeguard farmer welfare amid a 15-year low in domestic cotton production.
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    UPSC Angle: Government raises MSP for cotton and expands procurement efforts.

    Key Facts:

    • Government raised MSP for cotton for the 2025–26 season
    • Expanded procurement efforts to support farmers
    • Addresses challenges of rising imports
    • Aims to safeguard farmer welfare amid a 15-year low in domestic cotton production
    • Cotton Corporation of India (CCI) established in 1970 under the Ministry of Textiles
    • CCI aims to ensure fair prices for farmers and stabilize market fluctuations
  • 2025-08-04 [Environment & Ecology] — Climate Change as a National Security Issue
    The northeastern floods, Wayanad landslides, and rising sea levels are warning signs of a structural climate crisis impacting national stability, economic security, and ecological survival. Climate action is not yet a top priority in India’s spending plans, as reflected in the 2025-26 Union Budget, where the Ministry of Environment received only 0.067% of the total budget.
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    UPSC Angle: Climate change impacts national stability, economic security, and ecological survival.

    Key Facts:

    • Ministry of Environment received ₹3,412.82 crore in the 2025-26 Union Budget, 0.067% of the total
  • 2025-07-19 [Economy] — Fertiliser Subsidies Allocated for 2025–26
    For 2025–26, the government allocated over Rs 1.67 lakh crore for fertiliser subsidies, making up nearly 70% of the agriculture budget and 40% of total subsidy spending. As of 2024, there are 7.75 crore active KCC accounts with ₹9.81 lakh crore in loans.
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    UPSC Angle: Government allocated over Rs 1.67 lakh crore for fertiliser subsidies.

    Key Facts:

    • Government allocated over Rs 1.67 lakh crore for fertiliser subsidies for 2025–26
    • 70% of the agriculture budget and 40% of total subsidy spending
    • 7.75 crore active KCC accounts with ₹9.81 lakh crore in loans as of 2024
  • 2025-07-15 [Economy] — Viksit Bharat and Gender Budgeting
    The share of the gender budget has increased from 6.8% in 2024–25 to 8.8% in 2025–26, with ₹4.49 lakh crore allocated toward gender-focused programs. This aligns with the Prime Minister's vision of Viksit Bharat, where women's economic participation is seen as essential for inclusive growth.
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    UPSC Angle: Gender budget increased from 6.8% to 8.8% aligning with Viksit Bharat.

    Key Facts:

    • Gender budget share: Increased from 6.8% (2024-25) to 8.8% (2025-26)
    • Allocation for gender-focused programs: ₹4.49 lakh crore
  • 2025-06-20 [Polity & Governance] — Gender Budgeting in India
    India adopted its first gender budget in 2005-06, marking a significant step towards addressing gender disparities in resource allocation. Over the past 11 years, gender budget allocations have increased by four and a half times–from Rs. 0.98 lakh crore in 2014-15 to Rs. 4.49 lakh crore in 2025-26.
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    UPSC Angle: India adopted its first gender budget in 2005-06.

    Key Facts:

    • India adopted its first gender budget in 2005-06
    • Gender budget allocations increased 4.5 times from 2014-15 to 2025-26
    • Rs. 0.98 lakh crore in 2014-15
    • Rs. 4.49 lakh crore in 2025-26
  • 2025-04-19 [Economy] — Union Budget 2025-26 analysis in Economic and Political Weekly
    The Economic and Political Weekly's April 19, 2025 issue features an in-depth analysis of India's Union Budget 2025–26, with 11 articles covering fiscal rules, tax policy, public-private partnerships, and social sector allocations. The budget reduces direct tax liability and continues directional changes proposed in the Long Term Fiscal Policy, 1985.
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    UPSC Angle: EPW analysis of Union Budget 2025-26.

    Key Facts:

    • Union Budget 2025-26
    • Economic and Political Weekly
    • Fiscal rules
    • Tax policy
    • Public-private partnerships
    • Social sector allocations
    • Long Term Fiscal Policy, 1985
  • 2025-03-06 [Economy] — Yojana Magazine March 2025: Key Highlights
    The March 2025 edition of Yojana Magazine covers topics such as Roadmap for Viksit Bharat @2047, Fiscal Federalism in India, Union Budget 2025-26, Green Budgeting in India, India's Rapid Strides in Solar Energy, and Gender Budgeting in India. It also highlights key initiatives and tax reforms in the Union Budget 2025-26.
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    UPSC Angle: Yojana Magazine March 2025 covers Viksit Bharat @2047, Fiscal Federalism.

    Key Facts:

    • Roadmap for Viksit Bharat @2047
    • Fiscal Federalism in India
    • Union Budget 2025-26: Key Tax Reforms
    • Green Budgeting in India
    • India's Rapid Strides in Solar Energy
    • Gender Budgeting in India
    • Combating Violence Against Women: A Multi-Sectoral Approach
    • Saksham Anganwadi and POSHAN 2.0: Rs 23,048 crore allocated
    • Pradhan Mantri Matru Vandana Yojana (PMMVY): Rs 3,630 crore allocated
    • Beti Bachao Beti Padhao (BBBP): Rs 1,200 crore allocated
    • National Rural Health Mission (NRHM): Rs 21,850 crore allocated
    • Tax devolution to states increased to ₹14.22 lakh crore (BE 2025-26)
    • States receive 41% of central taxes based on 15th Finance Commission's recommendations
  • 2025-03-03 [Economy] — Gender Budget Analysis
    The Gender Budget (GB) has a record allocation of ₹4,49,028.68 crore, a 37.3% increase from FY24, constituting 8.86% of the total Union Budget 2025. However, the increase is primarily due to the inclusion of PM Garib Kalyan Anna Yojana (24% of GB) with tangible investments in care infrastructure remaining absent, despite emphasis on care economy in Economic Surveys 2023-24 and 2024-25.
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    UPSC Angle: Gender Budget allocation increased to ₹4,49,028.68 crore in FY25.

    Key Facts:

    • Record Allocation: ₹4,49,028.68 crore allocated to the Gender Budget (GB)
    • Increase from FY24: 37.3%
    • Percentage of Total Budget: GB constitutes 8.86% of the total Union Budget 2025
    • Primary Driver: Increase due to inclusion of PM Garib Kalyan Anna Yojana (24% of GB)
    • 53% of Indian women remain out of the workforce due to care responsibilities, compared to 1.1% of men (ILO data)
    • Indian women shoulder 40% more UCDW than their counterparts in South Africa and China
    • Women spend 17.8% of their time on unpaid care and domestic work.

India's 2025 GST Fiscal Performance and Structural Reforms

Focus: A chronological collection of monthly revenue reports, milestone reviews, and policy restructuring proposals regarding India's Goods and Services Tax throughout 2025.

UPSC Value: Useful for analyzing trends in indirect tax collection, the correlation between economic activity and tax buoyancy, and the evolution of the GST rate structure.

6 news items in this theme:

  • 2025-11-08 [Economy] — GST Collections Rise in October 2025
    India's GST collections rose to ₹1.95 lakh crore in October 2025, a 4.6% increase over the previous year, partly driven by Diwali-related spending. GST, introduced in 2017, is a destination-based tax on the consumption of goods and services, levied at every stage of production and distribution with tax charged only on the value added at each stage.
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    UPSC Angle: GST collections rise in October 2025 to ₹1.95 lakh crore.

    Key Facts:

    • GST collections in October 2025: ₹1.95 lakh crore
    • Increase of 4.6% over previous year
    • GST introduced in 2017
    • GST is a destination-based tax
    • GST revenue collection for October 2025 was ₹1,95,936 crore.
    • This is a 4.6% increase compared to October 2024.
    • 40% of the revenue came from five states.
  • 2025-07-03 [Economy] — GST Completes 8 Years: Key Achievements
    As of July 1, 2025, the Goods and Services Tax (GST) completed 8 years since its launch in 2017, demonstrating success in tax integration and digitization. The highest ever gross collection of Rs 22.08 lakh crore was recorded in FY 2024-25, with an average monthly collection of Rs 1.84 lakh crore. As of April 30, 2025, India has over 1.51 crore active GST registrations, a significant increase from 65 lakh in 2017.
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    UPSC Angle: GST completed 8 years, demonstrating success in tax integration.

    Key Facts:

    • GST completed 8 years since its launch on July 1, 2017
    • Highest ever gross collection of Rs 22.08 lakh crore in FY 2024-25
    • Average monthly collection of Rs 1.84 lakh crore
    • Over 1.51 crore active GST registrations as of April 30, 2025
    • 65 lakh GST registrations in 2017
  • 2025-07-01 [Economy] — GST revenue up 6.2% to ₹1.85 lakh crore in June 2025
    India's gross Goods and Services Tax (GST) revenue has increased by 6.2% to ₹1.85 lakh crore in June 2025, marking the slowest growth in the last four years. This indicates a moderate expansion in indirect tax collections.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • GST revenue ₹1.85 lakh crore in June 2025
    • 6.2% growth, the slowest in 4 years
    • GST revenue
    • up 6.2%
    • ₹1.85 lakh crore
    • June 2025
    • Gross Goods and Services Tax (GST)
    • ₹1.85 lakh crore in June 2025
    • 6.2% increase
  • 2025-06-26 [Economy] — GST Council to Consider Eliminating 12% Slab
    The 56th GST Council meeting, expected in late June or early July 2025, will consider a proposal to eliminate the 12% GST slab. This aims to simplify India's current four-rate system (5%, 12%, 18%, 28%) into a three-tier structure. Items currently taxed at 12% may be shifted to either 5% (essential items) or 18% (non-essential items).
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    UPSC Angle: GST Council to consider eliminating the 12% GST slab.

    Key Facts:

    • Meeting: 56th GST Council meeting
    • Timing: Late June or early July 2025
    • Proposal: Eliminate the 12% GST slab
    • Current System: Four-rate system (5%, 12%, 18%, 28%)
    • Proposed System: Three-tier structure
    • Items taxed at 12%: May be shifted to 5% or 18%
    • Council: Goods and Services Tax (GST) Council
    • Original Date: June 2025
    • New Date: Likely July 2025
    • Issues for Discussion: Minimizing the 12% tax slab, tax treatment on service intermediaries
  • 2025-05-03 [Economy] — India's GST Collection Reaches Record High
    India's Goods and Services Tax (GST) collection reached a record high of ₹2.37 lakh crore in April 2025, marking a 12.6% year-on-year increase. The total Gross GST collection includes Central GST (CGST) of ₹48,634 crore, State GST (SGST) of ₹59,372 crore, Integrated GST (IGST) of ₹69,504 crore, and Cess of ₹12,293 crore. GST is a comprehensive, multi-stage, destination-based indirect tax levied on every value addition, replacing various central and state taxes.
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    UPSC Angle: India's GST collection reaches record high of ₹2.37 lakh crore.

    Key Facts:

    • Total Gross GST Collection (April 2025): ₹2.37 lakh crore
    • Year-on-Year Growth: 12.6%
    • Central GST (CGST): ₹48,634 crore
    • State GST (SGST): ₹59,372 crore
    • Integrated GST (IGST): ₹69,504 crore
    • Cess: ₹12,293 crore
  • 2025-03-04 [Economy] — GST Collections Surge in February 2025
    Goods and Services Tax (GST) collections for February 2025 recorded a 9.1% year-on-year (YoY) growth, reaching approximately ₹1.84 lakh crore. This increase reflects strong domestic economic activity and improved tax compliance measures.
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    UPSC Angle: GST collections surge in February 2025, reaching ₹1.84 lakh crore.

    Key Facts:

    • GST collections for February 2025: ₹1.84 lakh crore
    • Year-on-year growth: 9.1%

Union Budget 2026-27: Strategic Sectoral Allocations

Focus: Specific funding allocations announced in the Union Budget 2026-27 targeting key developmental pillars like SMEs, urban infrastructure, and environmental sustainability.

UPSC Value: Provides a consolidated view of the government's fiscal priorities and developmental focus areas for the upcoming financial year.

5 news items in this theme:

  • 2026-02-22 [Environment & Ecology] — Shimla MC allocates funds for environmental conservation.
    The Shimla Municipal Corporation (MC) has allocated ₹74.49 crore to environmental conservation, becoming the first city in the state to introduce a climate budget. The funds will be allocated to greenhouse gas mitigation (28%), solid waste management (22%), air quality improvement (21%), urban planning, greenery, and biodiversity (19%), and water management (10%).
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    UPSC Angle: Shimla MC allocates funds for environmental conservation.

    Key Facts:

    • Shimla MC allocation: ₹74.49 crore for environmental conservation.
    • Greenhouse gas mitigation: 28% of the budget.
    • Solid waste management: 22% of the budget.
    • Air quality improvement: 21% of the budget.
    • Urban planning, greenery, and biodiversity: 19% of the budget.
    • Water management: 10% of the budget.
  • 2026-02-06 [Economy] — Union Budget 2026-27: Climate Allocations & Industrial Decarbonisation
    The Union Budget 2026–27 has increased climate-linked allocations, with ₹20,000 crore assigned for Carbon Capture, Utilisation and Storage (CCUS) and increased funding for rooftop solar projects, signaling a strategic move towards industrial decarbonisation in response to the EU's Carbon Border Adjustment Mechanism (CBAM). However, the allocations are considered modest and may only facilitate a pilot phase rather than large-scale industrial deployment, also, execution hurdles for schemes like PM Surya Ghar and PM-KUSUM remain a concern.
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    UPSC Angle: Budget 2026-27: Increased climate allocations, CCUS, rooftop solar funding.

    Key Facts:

    • Union Budget 2026–27 allocated ₹20,000 crore for Carbon Capture, Utilisation and Storage (CCUS).
    • Increased funding for rooftop solar projects.
    • EU's Carbon Border Adjustment Mechanism (CBAM) makes steel and aluminium decarbonisation vital for exports.
  • 2026-02-02 [Economy] — City Economic Regions (CERs)
    An allocation of ₹5,000 crore per City Economic Region (CER) over five years is proposed to develop integrated zones through a “Challenge Mode”.
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    UPSC Angle: ₹5,000 crore per City Economic Region (CER) over five years.

    Key Facts:

    • ₹5,000 crore allocation per City Economic Region (CER) over five years
    • To develop integrated zones through a “Challenge Mode”
  • 2026-02-01 [Economy] — ₹10,000 cr allocated to create champion SMEs
    Union Budget 2026-27 allocated ₹10,000 crore to create champion SMEs.
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    UPSC Angle: Union Budget allocated ₹10,000 crore to create champion SMEs.

    Key Facts:

    • ₹10,000 crore allocated
    • Objective: To create champion SMEs
  • 2026-01-19 [Environment & Ecology] — Increased Budget Allocation for Pollution Control
    The Union Budget 2026-27 has increased the allocation for "control of pollution" schemes and projects, including funding for pollution control boards and the National Clean Air Programme (NCAP). The Ministry of Environment, Forest and Climate Change (MoEFCC) has been allocated Rs 3,759.46 crore, about Rs 278 crore more than the 2025-26 budget estimate.
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    UPSC Angle: Increased budget allocation for pollution control schemes and projects.

    Key Facts:

    • The allocation for "control of pollution" has risen to Rs 1,091 crore for 2026-27.
    • The Central Pollution Control Board (CPCB) has been allotted Rs 123 crore for 2026-27.
    • The Commission for Air Quality Management (CAQM) has received an allocation of Rs 35.26 crore.

FY 2024-25 Institutional Financial Accountability and Resource Allocation

Focus: Reports and legislative actions concerning the disclosure of political donations, the utilization of ministerial budgets, and the adjustment of parliamentary compensation for the 2024-25 fiscal period.

UPSC Value: Crucial for evaluating the transparency of political finance and the efficiency of administrative expenditure, both central to Indian governance and public accountability.

5 news items in this theme:

  • 2025-09-24 [Economy] — BJP Receives Significantly More Donations Than Congress
    In 2024-25, the BJP received ₹6,088 crore in donations, which is nearly 12 times more than the Congress received.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • BJP donations: ₹6,088 crore in 2024-25.
    • BJP donations are approximately 12 times more than Congress.
  • 2025-07-13 [Economy] — Vedanta's Donations to BJP Increase
    Vedanta Ltd., a mining conglomerate, nearly quadrupled its donations to the Bharatiya Janata Party (BJP), contributing ₹97 crore in the fiscal year ending March 2025, according to its latest annual report.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Vedanta Ltd.
    • Bharatiya Janata Party (BJP)
    • ₹97 crore
    • fiscal year ending March 2025
  • 2025-04-01 [Economy] — Tourism Ministry Fund Utilization
    A parliamentary committee reported to the Rajya Sabha that the Tourism Ministry utilized only ₹2396 crore of the allocated ₹22,479 crore in 2024-25, indicating systemic inefficiencies.
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    UPSC Angle: Tourism Ministry utilized only ₹2396 crore of ₹22,479 crore allocated.

    Key Facts:

    • Ministry: Tourism Ministry
    • Allocation: ₹22,479 crore
    • Utilization: ₹2396 crore
    • Assessment: Systemic inefficiencies
    • Report by: Parliamentary committee
    • Submitted to: Rajya Sabha
    • Financial Year: 2024-25
  • 2025-03-25 [Polity & Governance] — Increased MP Salary and Allowances
    A 24% pay hike for Members of Parliament (MPs) has been notified under the Salary, Allowances and Pension of Members of Parliament Act, based on the Cost Inflation Index of the Income Tax Act of 1961. A Lok Sabha or Rajya Sabha member will receive ₹1.24 lakh a month, up from ₹1 lakh. The daily allowance has been increased from ₹2,000 to ₹2,500, and the pension for former MPs has been increased from ₹25,000 a month to ₹31,000.
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    UPSC Angle: 24% pay hike for MPs notified under the Parliament Act.

    Key Facts:

    • Pay Hike: 24% increase for MPs.
    • Monthly Salary: Increased from ₹1 lakh to ₹1.24 lakh.
    • Daily Allowance: Increased from ₹2,000 to ₹2,500.
    • Pension for Former MPs: Increased from ₹25,000 a month to ₹31,000.
  • 2025-03-21 [Polity & Governance] — Congress criticizes census delay and underutilized Home Ministry funds
    During a Rajya Sabha discussion, the Congress party criticized the government for the delayed implementation of the census and the underutilization of the Home Ministry's budget, with Congress leader Ajay Maken noting that India's population has increased by approximately 25% since the last census in 2011.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Congress
    • Rajya Sabha
    • Census delay
    • Home Ministry
    • Ajay Maken
    • 2011
    • 25%

Sectoral Industrial Initiatives in Union Budget 2026-27

Focus: Specific industrial and infrastructure allocations (Chemicals, AVGC, Defence) announced as part of the Union Budget 2026-27 priorities.

UPSC Value: Highlights the government's focus on diversifying industrial capabilities beyond traditional manufacturing.

4 news items in this theme:

  • 2026-02-17 [Schemes & Programs] — Central Government Launches Bharat Vistaar Digital Platform for Farmers
    The central government has launched Bharat Vistaar, a digital platform to provide farmers with easy access to essential agricultural information in their local languages. Launched in Jaipur by Union Agriculture Minister Shivraj Singh Chouhan, the platform aims to deliver timely services, including crop-specific advice, weather forecasts, and market prices, directly to farmers. The platform is designed to be accessible even in remote villages through a call-based or digital interface.
    More details

    UPSC Angle: Bharat Vistaar digital platform launched for farmers.

    Key Facts:

    • Bharat Vistaar platform launched by Union Agriculture Minister Shivraj Singh Chouhan in Jaipur
    • Platform provides crop-specific scientific advice, weather forecasts, and market price updates
    • Platform accessible through a call-based or digital interface
    • AI assistant named Bharati integrated into Bharat-VISTAAR
    • Dedicated helpline number operational
  • 2026-02-05 [Economy] — Budget 2026-27 Allocates ₹600 Crore for Chemical Parks
    The Union Budget 2026–27 introduces a scheme to assist States in setting up three dedicated Chemical Parks with a budgetary allocation of Rs 600 crore in BE FY 2026–27. These parks are planned industrial clusters designed for chemical and petrochemical manufacturing.
    More details

    UPSC Angle: Budget 2026-27 allocates ₹600 Crore for Chemical Parks.

    Key Facts:

    • ₹600 crore allocation for shared infrastructure
    • Contributes 7% to national GDP
    • India is 6th largest chemical producer globally and 3rd largest in Asia
    • Rs 600 crore is allocated in BE FY 2026–27 to set up three Chemical Parks.
  • 2026-01-16 [Economy] — Budget 2026 and boost for various sectors
    Union Budget 2026: Policy push for indigenous seaplane manufacturing, with viability gap funding to support operations. India's animation, visual effects, gaming and comics (AVGC) sector to need 2 million professionals by 2030. Expansion of the electronics component manufacturing scheme (ECMS) to ₹40,000 crore.
    More details

    UPSC Angle: Budget 2026: Policy push for indigenous seaplane manufacturing.

    Key Facts:

    • Policy push for indigenous seaplane manufacturing, with viability gap funding to support operations
    • India's animation, visual effects, gaming and comics (AVGC) sector to need 2 million professionals by 2030
    • Expansion of the electronics component manufacturing scheme (ECMS) to ₹40,000 crore
  • 2026-01-11 [Economy] — Budget 2026: Focus on Infrastructure, Defence Priorities
    Ahead of Budget 2026, analysts suggest expanding the infrastructure list to include sectors like space, aircraft, EVs, maritime, and logistics. Strengthening state-level financial institutions is also emphasized to support local bodies and climate initiatives. CDS Gen Anil Chauhan noted that domestic defence procurement boosts modernisation, employment, and revenue.
    More details

    UPSC Angle: Budget 2026: Focus on infrastructure, defence priorities.

    Key Facts:

    • Budget: 2026
    • Infrastructure: Expand list to include space, aircraft, EVs, maritime, and logistics
    • Financial Institutions: Strengthen state-level institutions
    • Purpose: Support local bodies and climate initiatives
    • CDS Gen Anil Chauhan: Highlights benefits of domestic defence procurement
    • Benefits: Boosts modernisation, employment, and revenue

India's Fiscal Landscape & Budget 2026 Outlook

Focus: A progression of macroeconomic indicators, fiscal policy adjustments (GST), and government spending data leading into the 2026 Union Budget.

UPSC Value: Useful for tracking the continuity of fiscal policy, specifically how GST adjustments and Capital Expenditure (CapEx) trends inform the Union Budget.

4 news items in this theme:

  • 2026-01-16 [Economy] — Economic Survey: Capital expenditure and innovation
    India's capital spending has increased more than fourfold from Rs 2.63 lakh crore in FY18 to Rs 11.21 lakh crore in FY26 (Budget Estimates). India's Global Innovation Index ranking improved to 38th in 2025 from 66th in 2019.
    More details

    UPSC Angle: India's capital spending increased, innovation ranking improved to 38th.

    Key Facts:

    • India's capital spending has risen more than fourfold from Rs 2.63 lakh crore in FY18 to Rs 11.21 lakh crore in FY26 (Budget Estimates)
    • India's innovation performance has strengthened steadily
    • Global Innovation Index rank improving to 38th in 2025 from 66th in 2019
  • 2026-01-16 [Economy] — Economist view on global trade and the Indian budget
    The Economic Times notes that Indian Inc. is closely watching Budget 2026 for policy signals on growth, competitiveness, manufacturing, jobs, taxation, and ease of doing business, as global trade wars reshape supply chains and new tailwinds emerge for India.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Indian Inc. is closely watching Budget 2026
    • Policy signals on growth, competitiveness, manufacturing, jobs, taxation and ease of doing business
    • Global trade wars reshaping supply chains and new tailwinds emerge for India
  • 2026-01-12 [Economy] — Economic and Political Developments in India
    The Economic Times discusses various economic and political developments in India, including PM Modi's vision, GST cuts, Reliance and Adani investments in Gujarat, and upcoming diplomatic engagements. It also touches on the stock market performance and consumer sentiment.
    More details

    UPSC Angle: Too broad; lacks specific, testable details.

  • 2025-10-19 [Economy] — Indian Market Optimism
    October 2025 is seen as a crucial month for Indian markets with earnings season, festive demand, and GST-related price cuts boosting consumption. A recent US rate cut has also added to the positive cues.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Positive factors: Earnings season, festive demand, GST price cuts
    • Boost: US rate cut

FY26 Direct Tax Collection Trajectory

Focus: Sequential reporting of India's direct tax collection growth and administrative efficiency improvements throughout Fiscal Year 2025-26.

UPSC Value: Tracks the buoyancy of direct tax revenues and the effectiveness of tax administration reforms (refund speed, base widening) over a specific fiscal period.

4 news items in this theme:

  • 2026-01-13 [Economy] — Retail Inflation and Direct Tax Collections
    Retail inflation in India rose to 1.3% in December, while net direct tax collections increased by 9%. The Economic Times reports these economic developments, alongside political news including a Supreme Court notice to the Election Commission regarding procedural challenges in West Bengal. U.S. Ambassador-designate Sergio Gor emphasized the importance of U.S.-India trade talks.
    More details

    UPSC Angle: Retail inflation rises to 1.3%, direct tax collections increase.

    Key Facts:

    • Retail inflation rose to 1.3% in December
    • Net direct tax collections rose 9%
  • 2025-11-12 [Economy] — India's Direct Tax Collections Rise
    India's net direct tax collections rose 7% YoY to ₹12.92 lakh crore in April–November 2025, driven by stronger corporate and personal income tax inflows and an 18% drop in refunds.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Net direct tax collections rose 7% YoY to ₹12.92 lakh crore in April–November 2025
    • Gross collections reached ₹15.35 lakh crore
    • Corporate tax receipts grew to ₹5.37 lakh crore
    • Personal/non-corporate taxes grew to ₹7.19 lakh crore
  • 2025-10-14 [Economy] — Net Direct Tax Collection Rises
    India's net direct tax collection rose by 6.33% to over ₹11.89 lakh crore until October 12, driven by strong corporate tax collections and a 16% decline in refund payouts. The government targets a 12.7% increase in direct tax revenue for the full fiscal year 2025-26, aiming for ₹25.20 lakh crore, alongside raising ₹78,000 crore from Securities Transaction Tax (STT).
    More details

    UPSC Angle: India's net direct tax collection rose by 6.33%.

    Key Facts:

    • Net direct tax collection: ₹11.89 lakh crore (up 6.33%).
    • Gross direct tax collections increased to ₹13.92 lakh crore
    • Corporate tax receipts at ₹5.02 lakh crore
    • Non-corporate collections at ₹6.56 lakh crore.
    • Target for direct tax revenue in FY26: ₹25.20 lakh crore (12.7% increase).
    • Target from Securities Transaction Tax (STT): ₹78,000 crore.
  • 2025-07-15 [Economy] — India's Direct Tax Collections Growth
    India's gross direct tax collections have recorded a 274% growth in the last 10 years. Between 2013-14 and 2024-25, refunds issued by the tax department have grown by 474%, increasing from Rs 83,008 crore in FY14 to Rs 4.76 lakh crore in FY25. The taxpayer base has increased by 133% during the same period, and the average time for issuing tax refunds has decreased from 93 days in 2013 to just 17 days in 2024.
    More details

    UPSC Angle: India's gross direct tax collections have recorded a 274% growth.

    Key Facts:

    • Direct tax collection growth (last 10 years): 274%
    • Refund growth (FY14-FY25): 474%
    • Refund amount in FY25: Rs 4.76 lakh crore
    • Taxpayer base increase: 133%
    • Average refund time decrease: 93 days (2013) to 17 days (2024)

Bihar State Fiscal & Economic Administration (2025-26)

Focus: Key policy decisions, expenditure approvals, and economic performance reviews specific to the Bihar state government during the 2025-26 fiscal cycle.

UPSC Value: Useful for analyzing sub-national fiscal federalism, the impact of state-level industrial incentives, and the composition of state expenditure (developmental vs. committed).

3 news items in this theme:

  • 2026-02-06 [Economy] — Bihar Economic Survey 2025-26
    The Bihar Economic Survey 2025‑26, the 20th Economic Survey of the state, was presented in the Bihar Assembly by Finance Minister Bijendra Prasad Yadav on February 2, 2026. Bihar's economic growth outpaced the national average with 14.9% compared to India's 12.0%. The GSDP for 2024–25 is estimated at ₹9,91,997 crore at current prices.
    More details

    UPSC Angle: Bihar Economic Survey 2025-26 presented in the Bihar Assembly.

    Key Facts:

    • Presented by: Finance Minister Bijendra Prasad Yadav
    • Bihar's economic growth: 14.9%
    • India's economic growth: 12.0%
    • GSDP for 2024–25: ₹9,91,997 crore at current prices
  • 2025-10-04 [Economy] — Bihar Cabinet Approves DA Hike
    The Bihar Cabinet has approved a 3% increase in dearness allowance (DA) for government employees, pensioners, and family pensioners, raising it from 55% to 58%. The revised DA will be effective from July 1, 2025.
    More details

    UPSC Angle: Bihar Cabinet approves 3% DA hike for government employees.

    Key Facts:

    • Bihar Cabinet
    • dearness allowance (DA)
    • 3% increase
    • 55% to 58%
    • government employees
    • pensioners
    • family pensioners
    • July 1, 2025
  • 2025-08-31 [Schemes & Programs] — Bihar Industrial Investment Promotion Package 2025
    The Bihar Cabinet approved the Bihar Industrial Investment Promotion Package 2025 on August 26, 2025, to boost industrial growth and attract private investment, offering incentives like free land for investors and discounts on land rates. The Cabinet also sanctioned ₹408.81 crore for acquiring 242 acres of land for the Fin Tech City project near Fatuha in Patna.
    More details

    UPSC Angle: Bihar Industrial Investment Promotion Package 2025 approved.

    Key Facts:

    • Approved: Bihar Industrial Investment Promotion Package 2025
    • Date of Approval: August 26, 2025
    • Free Land: Available at ₹1 for investments of ₹100 crore and 1,000 jobs (up to 10 acres)
    • Land Discount: 50% discount of BIADA's land rate
    • Fin Tech City Project: ₹408.81 crore sanctioned for 242 acres of land near Fatuha, Patna
    • Interest subvention: Up to ₹40 crore
    • SGST reimbursement: Up to 100%
    • SGST reimbursement: 300% of approved project cost over 14 years
    • Capital subsidy: 30% based on approved project cost

Union Budget 2026-27: Presentation and Projections

Focus: The presentation, revenue projections, and key sectoral highlights of the subsequent Union Budget for the fiscal year 2026-27.

UPSC Value: Provides a forward-looking view of the fiscal roadmap for the next cycle (FY27), contrasting with the implemented policies of FY26.

3 news items in this theme:

  • 2026-02-02 [Economy] — Union Budget 2026-27 Highlights
    The Union Minister of Finance presented the Union Budget 2026–27 in Parliament, marking the first Budget prepared in the newly inaugurated Kartavya Bhawan. The budget, framed as a Yuva Shakti-driven Budget, is anchored in the vision of Viksit Bharat and guided by three Kartavyas: accelerating economic growth, building people's capacities, and ensuring inclusive development.
    More details

    UPSC Angle: Union Budget 2026–27 presented in Kartavya Bhawan.

    Key Facts:

    • Budget prepared in Kartavya Bhawan
    • Anchored in vision of Viksit Bharat
    • Three Kartavyas: Accelerate economic growth, build people's capacities, ensure inclusive development
    • Non-debt receipts estimated at ₹36.5 lakh crore
    • Total expenditure projected at ₹53.5 lakh crore
    • Centre's net tax receipts estimated at ₹28.7 lakh crore
    • Gross market borrowings pegged at ₹17.2 lakh crore
    • Net market borrowings from dated securities estimated at ₹11.7 lakh crore
    • Fiscal deficit (BE 2026–27) estimated at 4.3% of GDP
    • Debt-to-GDP ratio projected to decline to 55.6% in BE 2026–27
    • Accelerating and sustaining economic growth by boosting productivity, competitiveness, and resilience amid global uncertainties
    • Fulfilling people's aspirations by strengthening their capacities
    • Ensuring inclusive access to resources, amenities, and opportunities so that every family, region, and sector can meaningfully participate in growth
  • 2026-02-01 [Schemes & Programs] — Union Budget 2026-27 Boosts Health Sector with Increased Allocation
    The Union Budget 2026-27 allocates ₹1,06,530.42 crore to the Ministry of Health and Family Welfare, a nearly 10% increase over the revised estimates of 2025-26. Focus areas include enhanced primary healthcare, infrastructure development, medical research, digital health, and affordable treatment for cancer and rare diseases.
    More details

    UPSC Angle: Union Budget allocates ₹1,06,530.42 crore to Health Ministry.

    Key Facts:

    • ₹1,06,530.42 crore allocated to the Ministry of Health and Family Welfare
    • 10% increase over 2025-26 revised estimates
    • ₹39,390 crore for the National Health Mission
    • ₹4,770 crore for Pradhan Mantri Ayushman Bharat Health Infrastructure Mission
    • ₹10,000 crore outlay over five years for Bio Pharma Shakti initiative
    • Full exemption of basic customs duty on 17 life-saving drugs
    • Increased allocation for Ayushman Bharat Digital Mission
    • Establishment of NIMHANS 2.0 (National Institute for Mental Healthcare in North India)
    • 50% expansion in emergency and trauma care capacity in district hospitals
  • 2026-01-19 [Economy] — Budget 2026: Gross Tax Revenue and GST Projections
    The government's gross tax revenue is targeted at Rs 44.04 lakh crore for FY27, up from Rs 42.70 lakh crore for FY26. GST revenue is projected at ₹11.78 lakh crore in FY26, up 11% year-on-year.
    More details

    UPSC Angle: FY27 gross tax revenue target: Rs 44.04 lakh crore.

    Key Facts:

    • Gross tax revenue target for FY27: Rs 44.04 lakh crore
    • Gross tax revenue for FY26: Rs 42.70 lakh crore
    • GST revenue projection for FY26: ₹11.78 lakh crore, up 11% year-on-year

Structural Deficits in Public Health Financing

Focus: Budgetary analyses and reports spanning 2025-2026 that consistently flag India's failure to meet GDP health spending targets and the resulting high out-of-pocket expenditure.

UPSC Value: Critical for analyzing the gap between National Health Policy targets and actual fiscal allocations.

3 news items in this theme:

  • 2026-01-31 [Economy] — India's Low Public Health Spending
    India's public health spending is critically short, failing to meet the National Health Policy (NHP) 2017's target of 2.5% of GDP by 2025. While states have increased health spending, the Union government has reduced its share, leading to financial hyper-centralisation and undermining state capacity to deliver healthcare. India's per capita public health spending remains significantly lower than that of its neighbors and BRICS nations.
    More details

    UPSC Angle: India's public health spending fails to meet 2.5% of GDP target.

    Key Facts:

    • NHP 2017 target of raising public health spending to 2.5% of GDP by 2025 remains unfulfilled
    • Union government's share stands at 0.29% of GDP (2025-26)
    • Union government's health spending declined from 0.37% (2020-21) to 0.29% (2025-26)
    • States have increased their health spending from 0.67% (2017-18) to 1.1% of GDP (2025-26)
    • Union's share of health transfers to states for Centrally Sponsored Schemes has plummeted from 75.9% (2014-15) to 43% (2024-25)
    • In 2023-24, only one-fourth of HEC collection was allocated to health
  • 2025-06-30 [Environment & Ecology] — India's Environment Report Warns of Worsening Climate and Health
    The State of India's Environment in Figures 2025 report highlights a mounting crisis with extreme weather, declining public health, stalled infrastructure, and economic strain. It was India's warmest year on record, extreme weather events induced 5.4 million internal displacements, India's groundwater reserves are overdrawn, and toxic heavy metals were found in almost half of the country's monitored river sites in 2022.
    More details

    UPSC Angle: India's Environment Report warns of worsening climate and health.

    Key Facts:

    • India's greenhouse gas emissions reached 7.8% of global share
    • 135 districts extracting groundwater from depths exceeding 40 metres
    • Toxic heavy metals found in almost half of monitored river sites in 2022
    • 5.4 million internal displacements due to extreme weather events
    • India saw 3.06 million excess deaths in 2020-21
    • India needs 36% more community health centres
    • 80% shortfall in specialists
    • Out-of-pocket spending rose to over 45% of total health expenditure
  • 2025-04-07 [Economy] — Low Public Health Spending in India
    India's public health spending remains low, with the Health Ministry receiving ₹99,858.56 crore in the 2025–26 Union Budget, only 1.97% of the total budget. Out-of-pocket expenses continue to burden families, pushing 55 million people into poverty each year.
    More details

    UPSC Angle: India's public health spending remains low at 1.97% of budget.

    Key Facts:

    • Health Ministry allocation in 2025–26 Union Budget: ₹99,858.56 crore (1.97% of total budget)
    • People pushed into poverty each year due to out-of-pocket expenses: 55 million

State Performance and Governance Indices

Focus: A series of indices released by NITI Aayog in early 2026 to evaluate state-level performance across exports, sustainable development, and fiscal health.

UPSC Value: Key for GS-2 (Governance/Federalism) and GS-3 (Economy), providing data for answer writing on cooperative federalism and state performance.

3 news items in this theme:

  • 2026-01-31 [Polity & Governance] — NITI Aayog SDG India Index 2025-26
    NITI Aayog released the SDG India Index 2025-26, ranking states based on their performance across 17 Sustainable Development Goals. Kerala, Tamil Nadu, and Himachal Pradesh emerged as top performers.
    More details

    UPSC Angle: NITI Aayog released the SDG India Index 2025-26.

    Key Facts:

    • NITI Aayog released its annual SDG India Index 2025-26.
    • Kerala, Tamil Nadu, and Himachal Pradesh are top performers.
  • 2026-01-24 [Polity & Governance] — NITI Aayog's Fiscal Health Index
    NITI Aayog launched the inaugural Fiscal Health Index (FHI) on January 24, 2025, covering 18 major states for FY23. The index scores states based on expenditure quality, revenue mobilization, fiscal prudence, debt index, and debt sustainability.
    More details

    UPSC Angle: NITI Aayog launched Fiscal Health Index (FHI) covering 18 states for FY23.

    Key Facts:

    • Report: Fiscal Health Index (FHI)
    • Released by: NITI Aayog
    • Date of Release: January 24, 2025
    • Coverage: 18 major states
    • Financial Year: 2022-23
    • Parameters: expenditure quality, revenue mobilization, fiscal prudence, debt index, and debt sustainability
    • Leading States: Odisha, Chhattisgarh, and Jharkhand
    • Lagging States: Punjab, Andhra Pradesh, and West Bengal
  • 2026-01-15 [Economy] — NITI Aayog Releases Export Preparedness Index (EPI) 2024
    NITI Aayog has released the Export Preparedness Index (EPI) 2024, assessing the export readiness of Indian States and UTs. The EPI is a composite index evaluating export competitiveness and institutional capacity at the sub-national level, structured around four pillars: policy, business ecosystem, export ecosystem, and export performance. The index recognizes the diversity of subnational economic structures and their critical role in advancing India's global trade ambitions.
    More details

    UPSC Angle: NITI Aayog releases Export Preparedness Index (EPI) 2024.

    Key Facts:

    • Released by: NITI Aayog
    • Purpose: To assess export readiness of States and UTs
    • Framework: Four pillars (policy, business ecosystem, export ecosystem, export performance)
    • Pillars disaggregated into: 13 sub-pillars and 70 indicators
    • NITI Aayog released the Export Preparedness Index (EPI) 2024 on January 14, 2026.
    • This is the 4th edition, with the first launched in August 2020.
    • Aligned with India's goal of achieving USD 1 trillion in merchandise exports by 2030.
    • Aligned with the Viksit Bharat @2047 vision.
    • EPI 2024 has 4 pillars, 13 sub-pillars, and 70 indicators.
    • The four pillars are Export Infrastructure, Business Ecosystem, Policy and Governance, and Export Performance.
    • Business Ecosystem has the highest weightage (40%).

Maharashtra's Economic and Developmental Performance (FY 2024-25)

Focus: Reports and indices highlighting Maharashtra's fiscal health, GST revenue, and energy efficiency rankings during the 2024-25 period.

UPSC Value: Useful for analyzing state-level economic indicators, fiscal deficits, and performance in national indices like the State Energy Efficiency Index.

3 news items in this theme:

  • 2025-12-14 [Polity & Governance] — Finance and Appropriation Accounts of Maharashtra for 2024-25
    The Finance and Appropriation Accounts of the Government of Maharashtra for the financial year 2024-25, which provides a detailed overview of the state's financial status, were tabled in the State Legislature. The state reported a revenue deficit of ₹29,995 Crore, and the fiscal deficit stood at ₹1,24,209 Crore, which is 2.74% of the Gross State Domestic Product (GSDP).
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Government of Maharashtra
    • Financial year 2024-25
    • Revenue deficit: ₹29,995 Crore
    • Fiscal deficit: ₹1,24,209 Crore
    • 2.74% of GSDP
    • GSDP: ₹45,31,518 Crore
    • Public debt: ₹7,11,960 Crore
  • 2025-08-30 [Polity & Governance] — State Energy Efficiency Index Assesses Performance of States/UTs
    The State Energy Efficiency Index assessed 36 States/UTs for FY 2023–24 using 66 indicators across sectors like buildings, industry, transport, and agriculture. Top performers include Maharashtra, Andhra Pradesh, Assam, and Tripura, with progress noted in states adopting energy conservation building codes and electric mobility policies.
    More details

    UPSC Angle: State Energy Efficiency Index assesses States/UTs performance.

    Key Facts:

    • Coverage: Assessed 36 States/UTs for FY 2023–24 using 66 indicators
    • Top Performers: Maharashtra (>15 MToE group), Andhra Pradesh (5–15 MToE group), Assam (1–5 MToE group), Tripura (<1 MToE group)
    • 24 states notified Energy Conservation Building Code (ECBC) 2017
    • 31 states adopted electric mobility policies
    • 13 states promoted solar agricultural pumps, with Kerala leading at 74% adoption
  • 2025-05-15 [Economy] — Maharashtra Topped Among Indian States with Highest GST Revenue in FY25
    Maharashtra topped among the top 10 Indian states with the highest Goods and Services Tax (GST) collection for Financial Year 2024-25 (FY25) with Rs 3,18, 497 crore. In April 2025, Maharashtra's total GST collection was Rs 41,645 crore.
    More details

    UPSC Angle: Maharashtra topped GST revenue collection in FY25.

    Key Facts:

    • State: Maharashtra
    • GST collection in FY25: Rs 3,18, 497 crore
    • GST collection in April 2025: Rs 41,645 crore
    • Growth decreased from 13% (in April 2024) to 11% (in April 2025)

Union Ministry Administrative and Budgetary Planning for 2025-26

Focus: Official publication of fiscal year 2025-26 planning documents, including Detailed Demands for Grants and statistical release schedules, by various Indian Union Ministries.

UPSC Value: Relevant for understanding the Union Budget process under Article 113 and the institutional mechanisms for transparency and accountability in government spending and data dissemination.

3 news items in this theme:

  • 2025-11-24 [Polity & Governance] — Ministry of Law & Justice - Detailed Demand for Grants for the year 2025-26
    The Ministry of Law & Justice has released the Detailed Demand for Grants for the year 2025-26. The website of Ministry of Law & Justice was last updated on 24 Nov 2025.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Ministry of Law & Justice released Detailed Demand for Grants for the year 2025-26.
    • Website Last Updated: 24 Nov 2025.
  • 2025-06-30 [Economy] — MoSPI Releases Advance Release Calendar for 2025-26
    The Ministry of Statistics and Programme Implementation (MoSPI) has released its Advance Release Calendar for 2025-26, outlining the schedule for data releases, reports, and publications. This includes macroeconomic indicators like GDP, IIP, CPI, and survey reports such as PLFS and ASI.
    More details

    UPSC Angle: MoSPI released Advance Release Calendar for 2025-26.

    Key Facts:

    • Ministry of Statistics and Programme Implementation (MoSPI)
    • Advance Release Calendar (2025-26)
    • GDP
    • IIP
    • CPI
    • Periodic Labour Force Survey (PLFS)
    • Annual Survey of Industries (ASI)
    • Annual Survey of Unincorporated Sector Enterprises (ASUSE)
  • 2025-04-23 [Science & Technology] — DST Announces Detailed Demands For Grants 2025-2026
    The Department of Science & Technology (DST) released its Detailed Demands For Grants for 2025-2026, outlining budgetary allocations and priorities for science and technology initiatives.
    More details

    UPSC Angle: DST released Detailed Demands For Grants 2025-2026.

    Key Facts:

    • Detailed Demands For Grants 2025-2026 released by DST.

Union Government Fiscal Health and Debt Trajectory (2025)

Focus: A collection of reports from 2025 detailing the Union Government's fiscal deficit targets, actual performance against budget estimates, and total sovereign debt levels.

UPSC Value: Essential for GS-III (Indian Economy) to analyze the government's fiscal consolidation path, debt-to-GDP ratios, and adherence to fiscal responsibility frameworks.

3 news items in this theme:

  • 2025-11-13 [Economy] — Fiscal deficit reaches ₹9.76 lakh crore by November 2025
    By November 2025, India's fiscal deficit reached ₹9.76 lakh crore, which is 62.3% of the annual Budget estimate. The government aims to meet the fiscal deficit target of 4.4% of GDP by March 2026.
    More details

    UPSC Angle: Fiscal deficit reaches ₹9.76 lakh crore by November 2025.

    Key Facts:

    • Fiscal deficit reached ₹9.76 lakh crore by November 2025.
    • The fiscal deficit is 62.3% of the annual Budget estimate.
    • The fiscal deficit target is 4.4% of GDP by March 2026.
  • 2025-07-05 [Economy] — India's Public Debt Surges Past ₹205 Lakh Crore
    Government data reveals that India's total public debt has surged past ₹205 lakh crore, raising concerns among experts about fiscal discipline. The finance ministry asserts that the debt remains within sustainable limits.
    More details

    UPSC Angle: India's public debt surges past ₹205 lakh crore, raising fiscal concerns.

    Key Facts:

    • India's total public debt: ₹205 lakh crore
  • 2025-06-17 [Economy] — India's Fiscal Performance in FY25
    The Indian government's fiscal deficit for FY25 stood at Rs 15.77 trillion, slightly above the Revised Estimate (RE). However, as a percentage of GDP, the fiscal deficit was contained at 4.8%, aligning with the target due to higher-than-estimated nominal GDP. The revenue deficit was curtailed to Rs 5.7 trillion, amounting to 1.7% of GDP, a 17-year low.
    More details

    UPSC Angle: FY25 fiscal deficit at 4.8% of GDP, slightly above RE.

    Key Facts:

    • FY25 fiscal deficit: Rs 15.77 trillion (4.8% of GDP).
    • Revenue deficit: Rs 5.7 trillion (1.7% of GDP).
    • FY25 nominal GDP was 2% higher than First Advance Estimate.
    • FY26 nominal growth projection of 9% (ICRA).
    • Capex can potentially exceed BE by Rs 0.8 trillion, pushing the total to Rs 12.0 trillion.

Indian Fiscal Revenue Performance and Collection Trends (2025)

Focus: A series of official reports detailing the performance of India's major tax revenue streams (Direct Tax and GST), highlighting the impact of refund surges and collection volatility on fiscal targets.

UPSC Value: Understanding these trends is vital for assessing the government's fiscal health, the accuracy of budgetary estimates, and the broader economic environment's impact on resource mobilization.

3 news items in this theme:

  • 2025-08-13 [Economy] — India's Direct Tax Receipts Decline Amid Surge in Refunds
    India's gross direct tax receipts have declined by 1.9% to ₹7.99 lakh crore amid a 9.8% surge in refunds. The shortfall is primarily due to lower collections from the non-corporate tax category, which includes individual income tax.
    More details

    UPSC Angle: India's direct tax receipts decline amid surge in refunds.

    Key Facts:

    • Gross direct tax receipts: ₹7.99 lakh crore (1.9% decline)
    • Refunds increased by 9.8%
    • Non-corporate tax collections fell to ₹4.43 lakh crore, an 8.3% decrease
    • Gross corporate tax collections rose marginally to ₹3.33 lakh crore
  • 2025-06-01 [Economy] — GST Collections Exceed ₹2 Lakh Crore in May
    Gross Goods and Services Tax (GST) collections in India increased by 16.4% to over ₹2.01 lakh crore in May, according to government data. This follows a record high GST collection in April of ₹2.37 lakh crore. Revenue from domestic transactions rose 13.7% to ₹1.50 lakh crore, while revenue from imports grew 25.2% to ₹51,266 crore.
    More details

    UPSC Angle: GST collections exceeded ₹2 Lakh Crore in May, a 16.4% increase.

    Key Facts:

    • Gross GST collections: ₹2.01 lakh crore (May 2025)
    • Increase in GST collections: 16.4%
    • Record GST collection in April: ₹2.37 lakh crore
    • Increase in domestic transaction revenue: 13.7% to ₹1.50 lakh crore
    • Growth in GST revenue from imports: 25.2% to ₹51,266 crore
  • 2025-04-26 [Economy] — Direct Tax Revenue Exceeds ₹22.26 Lakh Crore
    India's net direct tax revenue for FY25 reached ₹22.26 lakh crore, marking a 13.57% year-on-year increase. This figure slightly missed the revised estimate target of ₹22.37 lakh crore due to a 26% surge in refunds.
    More details

    UPSC Angle: India's net direct tax revenue for FY25 reached ₹22.26 lakh crore.

    Key Facts:

    • Net direct tax income for FY25: ₹22.26 lakh crore
    • Year-on-year growth: 13.57%
    • Revised estimate target: ₹22.37 lakh crore
    • Increase in refunds: 26%

Fiscal Year 2025-26 Legislative Budgetary Approvals

Focus: Legislative bodies (Union Parliament and UP Assembly) finalizing and approving budget measures for the 2025-26 fiscal year in late March 2025.

UPSC Value: Useful for understanding the procedural timeline of budget approvals and the concurrent fiscal planning of Union and State governments.

3 news items in this theme:

  • 2025-03-25 [Economy] — Lok Sabha Passes Finance Bill 2025 with Amendments
    The Lok Sabha passed the Finance Bill 2025 with 35 government amendments, including the abolishment of a six percent digital tax on online advertisements. With the passage of the Bill, the Lok Sabha completed its part of the Budgetary approval process.
    More details

    UPSC Angle: Finance Bill 2025 abolishes six percent digital tax.

    Key Facts:

    • Lok Sabha passed the Finance Bill 2025 with 35 government amendments.
    • A six percent digital tax on online advertisements was abolished.
  • 2025-03-25 [Economy] — Uttar Pradesh Budget 2025-26
    The Uttar Pradesh Budget for 2025-26 allocates significant funds to various sectors, with a focus on education, transport, and health. Total revenue receipts for 2025-26 are estimated to be Rs 6,62,691 crore, an increase of 21% over the revised estimate of 2024-25.
    More details

    UPSC Angle: Not exam-relevant

    Key Facts:

    • Total revenue receipts for 2025-26 are estimated to be Rs 6,62,691 crore, a 21% increase over the revised estimate of 2024-25.
    • Rs 200 crore has been allocated for construction and repair of village roads under the Mukhya Mantri Gram Yojana.
    • A defence industrial corridor will be set up along the Bundelkhand-Riwa expressway at a cost of Rs 461 crore.
    • The state aims to set up eight data centre parks across the state with a capacity of 900 MW.
  • 2025-03-24 [Economy] — Lok Sabha Approves ₹50 Lakh Crore in Demands for Grants for 2025-26
    The Lok Sabha has approved ₹50 lakh crore in Demands for Grants for the fiscal year 2025-26, which are expenditure estimates requiring parliamentary approval under Article 113 of the Constitution. No demand for a grant can be made without the President's recommendation. Money cannot be withdrawn from the Consolidated Fund of India without Parliamentary approval, as per Article 114.
    More details

    UPSC Angle: Lok Sabha approves ₹50 lakh crore in Demands for Grants for 2025-26.

    Key Facts:

    • ₹50 Lakh Crore approved in Demands for Grants for 2025-26.
    • Approval required under Article 113 of the Constitution.
    • No grant demand without President's recommendation.
    • Article 114: Money cannot be withdrawn from Consolidated Fund of India without Parliamentary approval.
    • Article 115: Allows supplementary, additional, or excess grants.
    • ₹50 Lakh Crore
    • Article 113
    • Article 114
    • Article 115

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