Daily Current Affairs- 1st February 2026

Daily Current Affairs- 1st February 2026

Budget Snapshot:

• The Union Budget 2026–27 was presented on 1 February 2026, and is framed as a “Yuva Shakti-driven” Budget guided by 3 “kartavya”—(i) accelerate and sustain growth, (ii) fulfil aspirations/build capacity, and (iii) ensure Sabka Sath, Sabka Vikas.
• The Union Budget 2026–27, presented on 1 February 2026, was the ninth consecutive budget delivered by Finance Minister Nirmala Sitharaman. 
•  This was the first time in Indian parliamentary history that the Union Budget was presented on a Sunday. It marked the first budget prepared and presented from the newly established Kartavya Bhawan.
• The Budget follows the standard structure of Part A (policy + expenditure priorities) and Part B (tax proposals).
• Public capital expenditure (capex) is proposed at ₹12.2 lakh crore in FY 2026–27 to continue the infrastructure push.
• The fiscal deficit target for FY 2026–27 is 4.3% of GDP (with FY 2025–26 RE at 4.4%).
• For FY 2026–27 (BE), non-debt receipts are estimated at ₹36.5 lakh crore, and total expenditure at ₹53.5 lakh crore; the Centre’s net tax receipts are estimated at ₹28.7 lakh crore.
• To finance the deficit, net market borrowings (dated securities) are estimated at ₹11.7 lakh crore, and gross market borrowings at ₹17.2 lakh crore.

Part A (Budget Priorities and Spending Proposals)

• The Budget is described as a “Yuva Shakti-driven” Budget inspired by three “Kartavya”: (i) accelerating and sustaining economic growth, (ii) fulfilling aspirations and building capacity, and (iii) aligning with Sabka Sath, Sabka Vikas towards a Viksit Bharat.
• A Reform Express approach is used to combine policy reforms with targeted public investment, with an emphasis on the poor, underprivileged and disadvantaged.

1) Growth and Manufacturing

• Biopharma SHAKTI is proposed with an outlay of ₹10,000 crore (over 5 years) to build an ecosystem for domestic production of biologics and biosimilars, including a biopharma-focused network and new capacity-building institutions.
• ISM 2.0 is proposed to strengthen semiconductor sector capabilities, focusing on equipment/materials, full-stack Indian IP, supply chains, and industry-led research and training.
• The Electronics Components Manufacturing Scheme outlay is proposed to be increased to ₹40,000 crore (from ₹22,919 crore).
• For textiles, an Integrated Programme is proposed with multiple sub-parts including the National Fibre Scheme, cluster modernisation, handloom/handicraft integration, and skilling upgrades (Samarth 2.0).

2) MSMEs and “Champion SMEs”

• A dedicated ₹10,000 crore SME Growth Fund is proposed to create future “Champion SMEs”, along with a ₹2,000 crore top-up for the Self-Reliant India Fund to support micro enterprises’ risk capital.
• TReDS is further strengthened through measures such as mandating it for CPSE purchases from MSMEs and creating additional credit support and secondary-market liquidity for MSME receivables.

3) Infrastructure, Cities, and Climate

• Public capex is proposed at ₹12.2 lakh crore for FY 2026–27.
• City Economic Regions (CERs) are proposed for Tier II/Tier III cities and temple towns, with an allocation of ₹5,000 crore per CER over 5 years through a reform-and-results financing mechanism.
• Seven High-Speed Rail corridors are proposed as “growth connectors” to promote environmentally sustainable passenger systems.
• CCUS (Carbon Capture Utilisation and Storage) is proposed with an outlay of ₹20,000 crore (over 5 years) to scale deployment across key industrial sectors.

4) Emerging Tech, Education, Tourism, and Sports

• AVGC Content Creator Labs are proposed in 15,000 secondary schools and 500 colleges through support to the Indian Institute of Creative Technologies, Mumbai.
• To address challenges for girl students in STEM higher education, one girls’ hostel in every district is proposed through VGF/capital support.
• A Khelo India Mission is proposed to transform the sports sector over the next decade through talent pathways, coaching, sports science/tech integration, competitions, and infrastructure.
• Tourism initiatives include digitisation (National Destination Digital Knowledge Grid), guide upskilling, and development of heritage/cultural destinations.

5) Fiscal Position

• The Budget states total expenditure of ₹53.5 lakh crore, net tax receipts of ₹28.7 lakh crore, and a fiscal deficit target of 4.3% of GDP for FY 2026–27, alongside net and gross market borrowings.
• The Press Information Bureau summary highlights effective capex (including grants-in-aid for asset creation) and the public capex thrust for FY 2026–27.

6) Women Initiatives

• One girls’ hostel in every district: Through Viability Gap Funding/capital support, the Budget proposes setting up 1 girls’ hostel in each district, specifically to address constraints faced by girl students in Higher Education STEM institutions. SHE Marts for women entrepreneurs (SHGs): Building on the Lakhpati Didi Programme, Self-Help Entrepreneur (SHE) Marts are proposed as community-owned retail outlets (via cluster level federations) supported through enhanced/innovative financing instruments.
• Market linkages involving women-led groups (Fisheries): Initiatives to strengthen the fisheries value chain include enabling market linkages involving start-ups and women-led groups along with producer organisations.
• Care ecosystem + caregiver training: The Budget proposes building a stronger care ecosystem (including geriatric and allied care) and training 1.5 lakh caregivers in the coming year through NSQF-aligned programmes—an area where women often form a significant share of the workforce.

A) Direct Taxes

• The New Income Tax Act, 2025 is stated to come into effect from 01 April 2026, with simplified rules and forms to be notified.
• The Budget emphasises reducing multiplicity of proceedings to rationalise penalty and prosecution, and proposes a single category of IT services with a common safe-harbour margin, plus a higher threshold for safe harbour for IT services.
• In capital markets, STT on futures is proposed to be raised to 0.05% (from 0.02%), and changes are also proposed for options.
• Minimum Alternate Tax (MAT) is proposed to be finalised at a specified rate, with associated transition provisions.

B) Indirect Taxes (Customs/Excise)

• Energy transition and security measures include extending customs duty exemptions to capital goods used for manufacturing Lithium-ion cells for battery energy storage systems and exemptions for inputs such as sodium antimonate used in solar glass.
• For nuclear power, the basic customs duty exemption on imports of goods required for nuclear power projects is proposed to be extended till 2035, with expanded coverage.
• For critical minerals, basic customs duty exemption is proposed for import of capital goods required for processing critical minerals in India.
• For public health, basic customs duty is proposed to be exempted on 17 drugs/medicines.
• For sustainability, the value of biogas is proposed to be excluded for calculating central excise duty payable on biogas blended CNG.