Knowledge Gainers - Books, Exam Papers, Current Affairs & Notifications

The Key Features of the Government of India's Budget for 2026-2027.

The main topics and features highlighted in the document:

Overall Vision and Pillars:

Viksit Bharat: Balancing ambition with inclusion, with a focus on "Action Over Ambivalence, Reform Over Rhetoric, People Over Populism."
Economic Trajectory: Aiming for a high growth rate of around 7%, focusing on fiscal discipline, sustained growth, and moderate inflation.

Government's ‘Sankalp’ (Commitments):

First Kartavya: Accelerate and sustain economic growth.
Second Kartavya: Fulfil aspirations of the people.
Third Kartavya: Vision of Sabka Sath, Sabka Vikas, ensuring access to resources and opportunities for meaningful participation.
Pillars of Growth and Development: Sustaining Economic Growth, Strengthening the Foundations of Growth, People-Centric Development, Trust-based Governance, and Ease of Doing Business and Ease of Living.

Key Sectoral Focus Areas:

Sustaining Economic Growth (Manufacturing, Services, Agriculture):

Manufacturing: Initiatives like India Semiconductor Mission (ISM) 2.0, Biopharma SHAKTI, Schemes for Rare Earth Permanent Magnets, dedicated Chemical Parks, and tax reforms (e.g., income tax exemption for five years to non-residents providing capital goods for toll manufacturers in a bonded zone).
MSMEs: Three-pronged approach: Equity Support (₹10,000 crore SME Growth Fund), Professional Support (Corporate Mitras), and Liquidity Support through TReDS (Trade Receivables Discounting System).
Services Sector: High-Powered 'Education to Employment and Enterprise' Standing Committee, upgrading institutions for Allied Health Professionals, schemes for Medical Value Tourism, new All India Institutes of Ayurveda, and tax reforms (e.g., safe harbour for IT services increased from ₹300 crore to ₹2,000 crore).
Agriculture: Dedicated programmes for Horticulture (walnuts, almonds, pine nuts), Coconut promotion, Indian Cashew & Cocoa Programmes, support for Animal Husbandry, and strengthening fisheries value chain.

Strengthening the Foundations of Growth (Infrastructure and Energy):

Infrastructure: Public capex is projected at ₹12.2 lakh crore for FY27. Initiatives include setting up an Infrastructure Risk Guarantee Fund, new Dedicated Freight Corridors, operationalizing 20 new National Waterways, and a Coastal Cargo Promotion Scheme.
Energy Security: Scheme for Carbon Capture Utilization and Storage (CCUS) with an outlay of ₹20,000 crore, and exemptions on Basic Customs Duty (BCD) for components used in Lithium-Ion Cells, solar glass, and Nuclear Power Projects.
Urbanisation: Focus on Tier II, Tier III cities, and temple-towns, and 'Growth Connectors' like 7 High-Speed Rail corridors.
People-Centric Development: Focus on the Care Ecosystem (geriatric and allied care), Divyangjan Kaushal Yojana and Divyang Sahara Yojana for persons with disabilities, and upgrading Mental Health Institutes.

Ease of Doing Business and Ease of Living (Tax and Compliance):

TCS rate reduced on the sale of overseas tour packages (to 2%) and for education/medical purposes under LRS (to 2%).
Time for revising returns extended from December 31st to March 31st.
Introducing a one-time 6-month foreign asset disclosure scheme below a certain size for small taxpayers.

Fiscal Matters (Page 17):

16th Finance Commission: Accepted the recommendation to retain the vertical share of devolution at 41%.
Fiscal Consolidation:
Debt-to-GDP ratio targeted at 50±1 percent by 2030 (estimated at 55.6% in BE 2026-27).
Fiscal deficit in BE 2026-27 is estimated to be 4.3 percent of GDP.

Receipts and Expenditures (Pages 18-19):

Rupee Comes From: Borrowings and Liabilities (24%), Income Tax (21%), Corporation Tax (18%), and GST and other taxes (15%).
Rupee Goes To: Interest Payment (20%), Central Sector Scheme (17%), Defence (11%), and States Share of Taxes (22%).
Total Revenue Receipts (BE 2026-27): ₹34.2 lakh crore.
Total Effective Capital Expenditure (BE 2026-27): ₹17.1 lakh crore.

Expenditure of Major Items (In crore):

Features of Union budget 2026-27