Union Budget 2025 Current affairs| Budget 2025-26 Current affairs| Important GK about Budget

Explore essential insights and schemes from the Union Budget 2025 to enhance your general knowledge and current affairs awareness.

Union Budget

What is a budget?

• A budget is an annual financial statement for a given period, usually a year outlining estimated revenues and expenditure.
• It is used as a tool for managing financial resources and achieving specific goal such as resource mobilisation, fiscal consolidation, etc.
• The budget is a blueprint for the government’s plan for spending, levying taxes and other transactions that affect the economy and the lives of citizens.
• According to Article 112 of the Indian Constitution, the Union Budget for a specific financial year is called the Annual Financial Statement (AFS).
• The national budget is prepared by the Budget Division under the Department of Economic Affairs (DEA) of the Ministry of Finance and presented to the Parliament for discussion and approval.

Three types of Budgets

The budget is divided into three categories-

1. Balanced budget
2. Surplus budget
3. Deficit budget

1. Balanced budget- A government budget is called a balanced budget if the estimated government expenditure in a given financial year is equal to the expected government receipts.
2. Surplus budget- A government budget is called a surplus budget if the expected government revenue is more than the estimated government expenditure in a particular financial year.
3. Deficit budget- If the estimated government expenditure is more than the expected government revenue in a given financial year, then the budget is considered a deficit budget.

Important facts related to the budget

• The Finance Minister who presented the most number of budgets in India was Morarji Desai, he presented the budget 10 times, Morarji Desai presented the budget twice in 1964 and 1968 on the occasion of his birthday on 29 February.
• The budget of 1973-74 is called the “Black Budget” of India, because the budget deficit during 1973-74 was Rs. 550 crores
• R Venkataraman and Pranab Mukherjee are the two Finance Ministers of India who have also served as the President of India.
• Corporate tax was introduced for the first time in India by Rajiv Gandhi in the budget of 1987.
• The term “Interim Budget” was first used by “R. Shanmukham Chetty” in his budget speech of 1948-49.
• The first budget in India was presented on 7 April 1860 by the East India Company under the British Crown.
• Till the year 2000, the budget was presented at 5 pm but Finance Minister Yashwant Sinha changed the time of presenting the budget in 2001 and made it 11 am.
• Since 2001, the budget has presented every time at 11 am. The tradition of presenting the budget at 5 pm was started by “Sir Basil Blackett” in the year 1924.
• Nirmala Sitharaman has become the first Finance Minister to present the budget eight times in a row. In this case, she has left behind Morarji who had presented the budget six times in a row.

Union Budget 2025-26

The focus in Union Budget 2025-26 is on ‘GYAN’

• Which presenting the country’s general budget in Parliament, Union Finance Minister Nirmala Sitharaman said that this time the budget is focused on ‘GYAN‘.
• ‘GYAN’ means– Garib (Poor), Yuva (Youth), Ann Datta (food Provider/Farmers) and Nari Shakti (Women Power).
• The development measures proposed in this budget are in 10 broad areas, in which the focus is on the poor, youth, farmers and women.

10 sectors focused on GYAN-

1. Accelerating agriculture development and productivity
2. Building rural prosperity and resilience
3. Taking everyone along the path of inclusive growth
4. Growth manufacturing in India and furthering Make in India
5. Supporting MSMEs
6. Enabling growth through employment
7. Investing in people, economy and innovation
8. Securing energy supplies
9. Boosting exports
10. Nurturing innovation

Prime Minister Dhan Dhaanya Krishi Yojana will be launched in 100 district

• Finance Minister Nirmala Sitharaman has announced the launch of Pradhan Mantri Dhan-Dhaanya Krishi Yojana in budget 2025-26.
• 1.7 crore farmers will get help through this scheme,this scheme will be run in collaboration with the states.
• 100 districts will be covered under this scheme and these will be such districts where production is low.

Jal Jeevan Mission extended till the year 2028-

• Union Finance Minister NIrmala Sitharaman has announced the extension of Jal Jeevan Mission till the year 2028 in budget 2025-26.
• Jal Jeevan Mission was launched in 2019.

One plant in Assam with an annual capacity of 12.7 lakh metric tonnes-

• Finance Minister Nirmala Sitharaman has announced setting up of a plant with an annual capacity of 12.7 lakh metric tonnes at Narmup, Assam to enhance urea supply in Budget 2025-26.

No tax will be payable on annual income of Rs. 12 lakh-

• This means that if a person’s salary is Rs. 12 lakh and he chooses the New Tax Regime, then there is no need to pay a single rupee tax on income up to Rs 12 lakh.
• But even if your income is Rs 12 lakh 75 thousand, you will still be charged ‘0’ tax, because above 12 lakh you will get the benefit of standard deduction of 75000.
• In this way, there will be no need to pay any tax on Rs 12 lakh 75000

The new proposed tax system after the budget announced is as follows-

• Zero to Rs 4 lakh- No tax
• 4 lakh to Rs 8 lakh- 5%
• 8 lakh to Rs 12 lakh- 10%
• 12 lakh to Rs 16 lakh- 15%
• 16 lakh to Rs 20 lakh-20%
• 20 lakh to Rs 24 lakh- 25%
• Above Rs 24 lakh- 30%

FDI limit for insurance sector raised from 74 percent to 100 percent

• The Union Budget 2025-26 has announced raising the FDI limit for the insurance sector from74 percent to 100 percent.
• Allowing 100 percent FDI will bring more investment to insurance companies, which will help them expand and grow faster.

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36 life saving medicines to be fully exempted from customs duty

• Finance Minister Nirmala Sitharaman announced in Union Budget 2025-26 that 36 life saving drugs will be fully exempted from cutoms duty.
• Day care centres to be set up in all district hospitals in next three years, 200 centrs to be set up in FY 2025-26.
• Cobalt products, LED, Zinc, Lithium-ion battery scrap, and 12 critical minerals will also be exempted from basic customs duty.

Focus product Scheme to be launched for footwear and leather sectors

• A Focus Product Scheme will be implemented to promote quality, productivity and competitiveness in India’s footwear and leather sector
• This scheme is expected to provide employment to 22 lakh people

A new scheme for 5 lakh women of SC and ST category

• Under this scheme, women of this society who are becoming entrepreneurs for the first time will be provided a term loan of Rs 2 crore in the next 5 years.

Announcement to increase the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh-

• Through Kisan Credit Card (KCC), noe farmers will be able to get a loan of up to Rs 5 lakh from Kisan Credit Card, earlier this limit was only up to Rs 3 lakh
• Under the Kisan Credit Card Scheme, farmers get loan at an interest rate of only 4 percent per annum.

Makhana Board will be established in Bihar-

• Union Finance Minister Nirmala Sitharaman has announced in Budget 2025-26 that Makhana Board will be set up in Bihar, this board will provide training and assistance to Makhana farmers.
• National Institute of Food Technology Entrepreneurship and Management will be formed to promote food processing in Bihar.

Announcement to convert Indian Post Office into a large public logistic organization-

• Union Finance Minister Nirmala Sitharaman has announced in Budget 2025-26 that India Post will be transformed into a large public logistics organization with 1.5 lakh rural post offices.

Expansion in IIT infrastructure

• Finance Minister Nirmala Sitharaman has announced the expansion of IIT Patna in Budget 2025-26, along with this, it was also told additional infrastructure will be created in 5 major IITs of India to provide more capacity and opportunities in the field of education and research.

50,000 Atal Tinkering Labs to be set up

• Union Finance Minister Nirmala Sitharaman has announced in Budget 2025-26 that 50,000 Atal Tinkering Labs will be set up in government schools in the next five years and all government secondary school will be provided with broadband connectivity.

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Key Announcements

How much provision is there in the budget for all sectors in the Union Budget 2025-26-

Education Department-

• A total of Rs. 1 lakh 28 thousand 650 crore has been allocated for the education sector in this budget, there has been an increase of about seven present this year compared to last year.
• In last year’s budget, a provision of Rs. 1 lakh 12 thousand crore was made for the education department.

Health Department

• A provision of Rs. 98 thousand 311 crore has been made for the health department in the Union Budget 2025-26, last year the central government had made a provision of Rs 86 thousand 582 crore for the health department.
• A provision of Rs. 9 thousand 406 crore has been made for the Ayushman scheme ib the budget, while Rs 4 thousand 200 crore has been allocated for Ayushman Bharat Health Infrastructure.

Rural Development Department-

• A provision of Rs 2 lakh 67 thousand crore has been made for rural development in the Union Budget 2025-26.
• In the budget of 2024-25, this provision was Rs 1 lakh 80 thousand crore. Scheme like MNREGA, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Janjati Unnat Gram Abhiyam, Indira Gandhi National Windoe Pension Scheme come under this department.

Home Department

• A total provision of Rs 2 lakh 33 thousand 211 crore has been made for the Home Department in the Union Budget 2025-26.
• If we talk about the previous budget i.e. 2024-25, the budget allocation was varound Rs 2 lakh 20 thousand crore.
• Under the budget of the Home Department, grants are given to Union Territorries like Jammu and Kashmir and Ladakh.
• The Job of the Home Department is to control the internal security, law and order, crime of the country, along with this, the responsibility of the central administration of the country is also with the Home Department.

Agriculture and allied activities-

• In the Union Budget 2025-26, a provision of Rs 1 lakh 71 thousand 437 crore has been made in this year’s budge for farming and other related activities.
• In this year’s budget, it has been announced to increase the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh.
• Another new scheme has been announced for farming, the name of this scheme is Pradhan Mantri Dhan-Dhaanya Krishi Yojana, it will be implemented with the states.
• 100 districts will be included in the first phase

Defense Sector-

• A budget of Rs 6,81,210 crore has been announced for the defense sector in the Union Budget 2025-26, which is 9.5% more than last year.
• The defense budget in the last financial year was Rs 6,21,940 crore.
• A total capital expenditure of Rs 1,92,387 crore and revenue expenditure of Rs 4,88,822 crore has been set in this budget, out of which Rs 1,60,795 crore is reserved for pension.

New Fund of Funds announced for startups-

• To encourage startups, in the Union Budget 2025-26, the government has expanded the small Industries Development Bank of India (SIDBI) Fund of Funds and a fresh investment of Rs 10,000 crore will be made in it.

Centre of Excellence for AI in Education-

The central government will set up a new Center of Excellence at a cost of Rs 500 crore to promote AI in the education sector

National Atomic Energy Mission-

• To promote nuclear energy in the energy sector, the Central Government has announced the National Atomic Energy Mission, which aims to produce at least 100 GW of nuclear energy by 2047.
• For this, the government will set up a Research and Development (R&D) centre at a cost of Rs 20,000 crore, which will work on Small Modular Reactor (SMR).
• The Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be amended to increase the participation of private companies.

Announcement to promote fisheries-

• Finance Minister Nirmala Sitharaman has announced to promote sustainable fisheries in Andaman- NIcobar and Lakshadweep in the Union Budget 2025-26.
• The central government will formulate a policy to ensure balanced use of India’s marine resources and increase seafood exports.

A 6-year mission to achieve self sufficiency in pulses-

• Finance Minister Nirmala Sitharaman has announced a six-year mission to achieve self-sufficiency in pulses in her Union Budget 2025-26 speech, with a special focus on tuvar (pigeon peas), urad (black gram) and masoor (lentils)

Identification of gig workers-

• In today’s era, lakhs of people are working as gig workers in food delivery, cab drivers, freelancers, logistics and online services.
• The central government will come up with a scheme for these gig workers and they will be given Identity cards by registering them on the e-shram portal.
• Along with this, health facilities will be provided under the PM Jan Arogya Yojana, about 1 crore gig workers will get its benefits

5 National centers of Excellence for Skilling will be established-

• 5 National Centers of Excellence for skilling to be set up for ‘Make for India, Make for the World‘ manufacturing.

Announcement of SWAMIH Fund-2-

• SWAMIH- Special Window for Affordable & Mid- INcome Housing
• Finance Minister Nirmala Sitharaman has announced a new ‘Swamiha Fund’ of Rs 15,000 crore to complete 1 lakh units in stall housing projects.

Major announcements related to promoting exports-

• A digital public infrastructure for international trade, ‘Bharat Trade Net’, will be established.

Central government to develop 50 tourist destinations with states-

• Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced that the Central Government will develop top 50 tourist destinations in partnership with the states.

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Some important questions related to budget

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Who is known as the father of Indian budget system?

Ans: James Wilson

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