Capital Receipts (₹ lakh crore) • 2024–25: 16.2• 2025–26 BE: 16.4• 2025–26 RE: 16.2• 2026–27 BE: 18.1Trend: Slight rise, then stable, then sharp increase Revenue Receipts (₹ lakh crore) • 2024–25: 30.4• 2025–26 BE: 34.2• 2025–26 RE: 33.4• 2026–27 BE: 35.3Trend: Consistent upward movement with minor correction Effective Capital Expenditure (₹ lakh crore) • 2024–25: 13.2• 2025–26 BE: 15.5• 2025–26 RE: 14.0• 2026–27 BE: 17.1Trend: Strong increase over the years Revenue Expenditure (₹ lakh crore) • 2024–25: 36.0• 2025–26 BE: 39.4• 2025–26 RE: 38.7• 2026–27 BE: 41.3Trend: Steady rise in revenue spending
Major Sectoral Allocations in Budget: Defence, Transport, Agriculture
• Transport – ₹5,98,520 crore• Defence – ₹5,94,585 crore• Rural Development – ₹2,73,108 crore• Home Affairs – ₹2,55,234 crore• Agriculture & Allied Activities – ₹1,62,671 crore• Education – ₹1,39,289 crore• Energy – ₹1,09,029 crore• Health – ₹1,04,599 crore• Urban Development – ₹85,522 crore
Rupee Comes From and Goes To: Budget Revenue and Expenditure
Rupee Comes From (decreasing order) • Borrowings & Liabilities – 24%• Income Tax – 21%• Corporation Tax – 18% Rupee Goes To (decreasing order) • States’ Share of Taxes – 22%• Interest Payment – 20%• Central Sector Schemes – 17%• Defence – 11%• Centrally Sponsored Schemes – 8%
Budget Highlights 2026-27: Fiscal Deficit, Taxes and Capex
Key Highlights • Fiscal deficit target for 2026–27: 4.3% of GDP • Debt-to-GDP ratio: 55.6% in 2026–27, target to reduce to 50% by 2031 • Gross corporate tax revenue: ₹12.3 lakh crore, 11% higher than FY 2025–26 (RE)• Gross income tax revenue: ₹14.7 lakh crore, growth of 11.7%• Centre’s net tax receipts: ₹28.7 lakh crore • Total capital expenditure (capex): ₹53.5 lakh crore for 2026–27 (7.7% increase over FY 2025–26 RE)
Doctors Without Borders MSF: Israel Ends Gaza Humanitarian Operations
Context Israel ended Doctors Without Borders’ (MSF) humanitarian operations in Gaza after the organisation declined to submit the list of its Palestinian staff. Doctors Without Borders (MSF) • Full name: Médecins Sans Frontières (MSF)• Type: International humanitarian medical NGO• Founded: 1971, Paris (by doctors and journalists)• Core work: Emergency medical aid in conflict zones, epidemics, natural disasters, and areas with health-system collapse• Principles: Neutrality, impartiality, independence• Nobel Peace Prize: 1999
Menstrual health in schools linked to Article 21: Supreme Court
Context The Supreme Court has held that menstrual health and menstrual hygiene management (MHM) in schools is an essential part of the fundamental right to life and dignity under Article 21. Directions issued by the Supreme Court • States and Union Territories must ensure:• Functional toilets in all schools• Free sanitary napkins• Installation of sanitary napkin vending machines Other Rights Recognised Under Article 21 (with case laws)
Stem cell therapy for autism not allowed as treatment: Supreme Court
Context The Supreme Court ruled that stem cell “therapies” for Autism Spectrum Disorder (ASD) cannot be offered as a clinical treatment due to the absence of established scientific evidence regarding their safety and efficacy. What are Stem Cells? • Special cells capable of self-renewal and differentiation into specialised cells (blood, muscle, nerve cells, etc.)• Found mainly in:• Embryos• Bone marrow• Umbilical cord blood• Induced pluripotent stem cells (iPSCs) created in laboratories What is Stem Cell Therapy? • A medical approach using stem cells to repair, replace or regenerate damaged tissues or cells• Valid only in approved clinical trials with proper scientific monitoring• For ASD, no proven scientific evidence of therapeutic benefit exists Accepted Applications of Stem Cell Therapy
Jal Jeevan Mission tap coverage rises, usage and reliability lag
Jal Jeevan Mission • Launch: 2019• Ministry: Ministry of Jal Shakti• Objective: Provide Functional Household Tap Connections (FHTC) to every rural household• Water norm: 55 litres per capita per day (LPCD) of potable water Key Economic Survey Data • Rural households with tap water in Aug 2019: 16.8% • Rural households with tap water as of Feb 2024: ~74% • Household coverage increase:• 3.23 crore (2019) → 12+ crore (2024) States with 100% coverage • Goa• Telangana• Gujarat• Haryana• Punjab• Andaman & Nicobar Islands• Puducherry• Dadra & Nagar Haveli and Daman & Diu• Ladakh Coverage highlights • Districts with 100% coverage: ~150+• Villages with 100% tap-water coverage: 2.1 lakh+ villages
FPI outflows hit five-month high in January 2026
Context January 2026 recorded ₹35,962 crore in foreign portfolio investment (FPI) outflows, the highest in five months, driven by weak corporate earnings and rupee depreciation. Foreign Portfolio Investment (FPI) • Foreign investment in Indian financial assets such as stocks, bonds and mutual funds without managerial control• 10% rule: • <10% equity holding → treated as FPI• ≥10% equity holding → treated as FDI Participatory Notes (P-Notes) • Offshore derivative instruments issued by SEBI-registered FPIs• Allow foreign investors to invest indirectly without registering with SEBI• Often criticised due to opaque ownership Reasons for FPI Outflows • Weak quarterly earnings of Indian companies• Rupee depreciation reducing dollar-denominated returns• Cautious global sentiment amid mixed emerging-market performance
China coast guard patrols near Japan-held islands increase
ContextChina’s coast guard reportedly patrolled islands administered by Japan almost daily during the previous year, reflecting heightened maritime tensions in the East China Sea and reinforcing territorial contestations.
