Brief Summary
This video provides a detailed analysis of the Union Budget 2025-26, explaining its key themes, allocations, and initiatives. It highlights the budget's focus on inclusive development, particularly for the poor, youth, farmers, and women, and identifies agriculture, MSMEs, investment, and exports as key engines for economic growth. The video also discusses various schemes and targets related to agriculture, infrastructure, education, and healthcare, offering valuable insights for upcoming competitive exams.
- Key theme of the budget is "Sabka Vikas" (Development for All).
- Focus on four engines of growth: agriculture, MSMEs, investment, and exports.
- Several initiatives aimed at improving infrastructure, education, and healthcare.
Introduction to Budget 2025-26
The presenter introduces the Union Budget 2025-26 and its importance for upcoming competitive exams, emphasizing that questions related to the budget and economy are crucial for exams like PCS and UPSC. The session aims to provide a comprehensive understanding of the budget, including potential questions and additional information. The presenter assures that the video will strengthen the preparation for Budget 2025-26.
Historical Context of the Budget
The presenter discusses the historical context of the budget in India, noting that the first budget was introduced in 1860 by a British East India Company official. Initially, the budget focused on controlling government expenses, reflecting a traditional approach with limited consideration for public welfare. Post-independence, the focus shifted to a performance-based budget that emphasized benefits for the people, detailing expenditures in sectors like health and their impact on citizens. R.K. Shanmukham Chetty, the first finance minister of independent India, presented the interim budget. While typically presented by the finance minister, prime ministers like Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi have also presented the budget under certain circumstances.
Evolution of Budget Presentation
The presenter explains the evolution of budget presentation, highlighting the tradition of carrying the budget in a briefcase, which originated from the French word "bougette" meaning leather bag. This practice continued until 2018. In 2019, Nirmala Sitharaman replaced the briefcase with a red cloth adorned with the Ashok emblem. By 2021, the budget was presented on a tablet wrapped in red cloth, marking the first paperless budget.
Theme and Key Highlights of Budget 2025-26
The presenter reveals that the theme for the central budget 2025-26 is "Sabka Vikas" (Development for All). The budget presentation began on February 1st, following the economic survey on January 31st and the Halwa ceremony, which signifies the lockdown of budget officials in the finance ministry until the budget is presented. Nirmala Sitharaman wore a saree with Mithila paintings, created by artist Dulaari Devi, which also gained media attention. The budget speech started with a quote from Telugu poet Sri Gurajada Appa Rao: "A country is not just its soil, but its people." The total expenditure proposed in the budget is ₹50,65,345 crore.
Expenditure and Development Measures
The presenter outlines the sectors with the highest budget allocations, including defense, rural development, home affairs, agriculture, education, and health. The budget promises to continue government efforts to promote development, ensure comprehensive growth, increase private sector investment, and enhance the capabilities of the emerging middle class. Development measures are designed to focus on the poor, youth, farmers (annadata), and women (nari). Agriculture, MSMEs, investment, and exports are identified as key engines for the country's development.
Principles of Developed India
The presenter discusses the principles of a developed India, which include poverty alleviation, 100% quality education, and access to affordable and accessible healthcare services. The goals also include ensuring meaningful employment with a 100% skilled workforce and involving 70% of women in economic activities. Additionally, there is a focus on improving the condition of farmers to make India the food basket of the world.
Four Engines of Development
The presenter reiterates that the budget focuses on four engines of development: agriculture, MSMEs, investment, and exports. The budget aims to improve these sectors through various measures, emphasizing their importance for overall economic growth and employment.
Agricultural Initiatives
The presenter details agricultural initiatives in the budget, including the launch of the Pradhan Mantri Dhan Dhanya Krishi Yojana in collaboration with state governments. This scheme will focus on 100 districts with the lowest agricultural productivity to increase production, diversify crops, improve storage facilities, and enhance credit access for farmers. Additionally, a comprehensive multi-sectoral rural prosperity adaptation construction program will be initiated to improve skills, investment, and technology in rural areas, benefiting women, youth, small farmers, and landless families.
Focus on Pulses and Cotton Production
The presenter discusses the government's efforts to achieve self-sufficiency in the production of three pulses: tur, urad, and masoor. A six-year campaign will be launched for this purpose. NAFED and NCCF will purchase these pulses from farmers at maximum levels over the next four years to encourage increased production. The government will also introduce programs to enhance the production of vegetables and fruits, along with a five-year campaign to increase cotton production.
Kisan Credit Card and NAFED & NCCF
The presenter mentions that the credit limit for Kisan Credit Cards, introduced in 1998 to provide loan assistance to farmers, has been increased to ₹5 lakh, potentially benefiting 7.7 crore farmers. NAFED, established on October 2, 1958, is the apex organization for marketing cooperatives in India, registered under the Cooperative Societies Act 2002. NCCF, established on October 16, 1965, serves as the apex body for consumer cooperative societies in the country, both working to protect the interests of farmers.
MSME Sector Initiatives
The presenter highlights the importance of the MSME sector, which contributes 45% to India's exports. Efforts will be made to enhance investment in this sector by 2.5 times. The Finance Minister announced a new scheme to provide loans up to ₹1 crore to 5 lakh women from SC and ST categories over the next five years.
Investment and Infrastructure Development
The presenter discusses investment as the third engine, focusing on investing in people, the economy, and innovation. This includes establishing 50,000 Atal Tinkering Labs in schools to enhance children's educational development. Under the Bharat Net project, efforts will be made to provide broadband connectivity to government secondary schools and primary health centers in rural areas. The Bharatiya Bhasha Pustak Yojana aims to digitize books in Indian languages for schools and higher education.
Skill Development and Healthcare Initiatives
The presenter notes that to promote "Make for India, Make for the World" manufacturing, youth will be equipped with necessary skills, and five national skill excellence centers will be opened. An excellence center for Artificial Intelligence will be established with an investment of ₹500 crore. The government will also identify gig workers under the Pradhan Mantri Jan Arogya Yojana and register them on the e-Shram portal. The Jal Jeevan Mission, launched in 2019, has been extended to 2028 to ensure water availability through taps.
Preservation of Ancient Manuscripts and Export Promotion
The presenter discusses the Gyan Bharatam Abhiyan, which aims to preserve over one crore ancient manuscripts in educational institutions, museums, and private collections. A national digital repository will be created to provide resources related to Indian knowledge systems. To boost exports, the Nirvaat Export Promotion Mission will be launched jointly by the Ministry of Commerce, Ministry of MSME, and Ministry of Finance. A digital public infrastructure will be created for international trade to simplify documentation, funding, and processes.
Support for Horticulture and Investment in States
The presenter mentions that the government will introduce air cargo services to transport perishable horticultural products quickly. The definition of horticulture includes beekeeping, honey production, flowers, fruits, and tea gardens. Premium investment for companies has been increased from 74% to 100% for Foreign Direct Investment (FDI). The Investment-Friendly Index 2025 will be launched to promote competition among states to attract more investment.
Fiscal Deficit and Key Initiatives
The presenter explains that the Jan Vishwas Bill 2.0 aims to decriminalize minor offenses in various laws. The revised estimate for the fiscal deficit in 2024-25 is 4.8%, and the estimated fiscal deficit for 2025-26 is 4.4% of GDP. The fiscal deficit refers to the shortfall in the government's revenue compared to its expenditure. A Makhana Board will be established in Bihar to boost production, processing, and value addition of makhana.
Yuria Plant and Toy Sector Goals
The presenter notes that a discussion about a urea plant in Assam was included in the budget. The goal for the toy sector is to make India a global toy hub by promoting unique, innovative, and eco-friendly toys.
Bihar-Specific Initiatives
The presenter highlights several initiatives related to Bihar, including the establishment of the National Food Technology Entrepreneurship and Management Institute, the establishment of a Makhana Board, and the development of greenfield and brownfield airports. Financial assistance will be provided for the Western Koshi Canal ERM project in the Mithilanchal region of Bihar.
Udan Scheme and Connectivity Goals
The presenter discusses the Udan scheme, launched in 2016 to enhance regional connectivity. Over the next 10 years, the scheme aims to increase regional connectivity to 120 new destinations, facilitating travel for 4 crore passengers. The asset monetization plan 2025-30 aims to bring back ₹10 lakh crore in new projects.
Insurance Sector and Tax Slabs
The presenter mentions that the FDI limit in the insurance sector has been increased from 74% to 100%. Under the new tax regime, individuals with income between ₹12 lakh and ₹16 lakh will have to pay 15% income tax. The presenter explains the tax slabs, noting that while there is no tax up to ₹12.75 lakh for salaried employees, those earning above this amount will be taxed according to the progressive tax slabs. The maximum tax rate is 30% for income above ₹24 lakh.
Government Revenue and Expenditure
The presenter details the sources of government revenue, with the largest share coming from borrowing and other liabilities (24%), followed by income tax (22%), GST and other taxes, and corporate tax. The government spends a significant portion of its revenue on interest payments (20%), pensions (4%), finance commission and other transfers (8%), states' share of taxes and duties (22%), defense (8%), and subsidies (6%).
Government Receipts and Expenditures
The presenter explains the different types of government receipts and expenditures, including revenue receipts, capital receipts, revenue expenditure, and capital expenditure. Capital receipts involve the government earning money by selling assets or through borrowings, while capital expenditure involves investments in infrastructure like roads and hospitals. Revenue receipts include revenue from taxes and duties, while revenue expenditure includes expenses on salaries, interest payments, and pensions.
Revenue and Capital Estimates
The presenter provides estimates for revenue receipts (₹34.2 lakh crore) and capital receipts (₹16.4 lakh crore) for 2025-26. The estimated capital expenditure is ₹15.5 lakh crore, and the estimated revenue expenditure is ₹39.9 lakh crore.
Conclusion and Additional Information
The presenter concludes by emphasizing the importance of the budget for upcoming exams and encourages viewers to revise the key points. The presenter also provides information about Drishti IAS coaching centers and contact details for those seeking guidance on exam preparation.
