Category: Government Schemes

Context:

• Recently, a total of 22 states and Union Territories asked the centre to hike the honorarium for PM-POSHAN scheme cooks and helpers.

About PM-POSHAN Scheme:

• • Other names: Formerly known as the Mid-Day Meal Scheme, it was renamed in September 2021.

• Nodal ministry: It is a Centrally Sponsored Scheme implemented by the Ministry of Education.

• • Objective: It aims to provide one hot cooked meal per school day to children studying in Balvatikas (pre-primary), and Classes 1 to 8 across government and government-aided schools.
  • Eligibility: The Scheme is implemented across the country covering all the eligible children without any discrimination of gender and social class.
  • Proposal for breakfast: Several states (e.g., Kerala, Tamil Nadu) and the National Education Policy (NEP) 2020 have advocated for adding breakfast to the scheme.
  • Inflation tracking: The Labour Bureau now uses the CPI-Rural Labourers (CPI-RL) to calculate inflation specifically for the PM-POSHAN food basket across 600 villages. 

• Focus areas:

• • • Enhancing nutritional status of school-going children
    • Improving enrolment, retention, and attendance in schools, especially among disadvantaged children

• Nutritional norms:

• • • For Balvatika and Primary classes: 20g pulses, 50g vegetables, and 5g oil
    • For Upper Primary classes: 30g pulses, 75g vegetables, and 7.5g oil

• Funding Pattern:

• • 60:40 between Centre and States/UTs with legislature
  • 90:10 for the Northeastern and Himalayan States
  • 100% central funding for UTs without legislature.

Source:

• The Indian Express

• Category: Defence and SecurityContext:Prime Minister Narendra Modi recently extended greetings to the Indian Coast Guard (ICG) on its 50th Raising Day.
• About Indian Coast Guard (ICG):
  • Nature: It is a multi-mission organization, conducting round-the-year real-life operations at sea.
  • • Nodal ministry: It is a maritime armed force operating under the Ministry of Defence, Government of India. 
    • Objective: Raised on February 1, 1977, the ICG was envisioned to address emerging maritime challenges and safeguard India’s expanding marine interests.
    • Establishment: It was formally established in 1978 by the Coast Guard Act, 1978 as an independent Armed force of India.
    • Headquarters: The Headquarters of the ICG is located in New Delhi, and is under the command of the Director General Indian Coast Guard.
    • Moto: Its motto is “VAYAM RAKSHAMAH” (WE PROTECT).
    • Capability: From its humble beginnings in 1977 with just seven surface platforms, the ICG has evolved into a formidable maritime force comprising 155 ships and 80 aircrafts today.
  • Focus areas:
  • • To protect our ocean and offshore wealth, including oil, fish, and minerals.
    • To assist mariners in distress and safeguard life and property at sea.
    • To enforce maritime laws with respect to the sea, poaching, smuggling, and narcotics.
    • To preserve the marine environment and ecology and protect rare species.
    • To collect scientific data and back up the Navy during war.
  • Maritime Security Architecture (Layered Grid): In the post-26/11 security framework, the ICG is part of a three-tier grid: 
    • Outer layer: Indian Navy (International Maritime Boundary Line).
    • Intermediate layer: Indian Coast Guard (Territorial Waters and EEZ).
    • Inner layer: State Marine Police (Shallow coastal areas)

  Source:

  • News 18

• Category: International OrganisationsContext:
• • The Minister of State for Women and Child development to lead the Indian delegation at the 64th Session of the United Nations Commission for Social Development (CSocD).

  About United Nations Commission for Social Development (CSocD):

  • Nature: It is a functional commission of the UN Economic and Social Council (ECOSOC).
  • • Evolution: Originally established in 1946 as the “Social Commission,” it was renamed in 1966 to better reflect its developmental focus. 
    • Objective: It focuses on advancing international cooperation on social development issues, including social inclusion, equity, and welfare-oriented policies.
    • Existence: It has been in existence since the very inception of the United Nations, advising ECOSOC and governments on a wide range of social policy issues and from the social perspective of development.
    • Membership: Originally 18, membership has been increased several times, most recently in 1996, and now stands at 46. Members are elected by ECOSOC based on equitable geographical distribution for four-year terms. 
    • Meetings: The CSocD meets every year at the United Nations Headquarters in New York, typically in February.
  • Focus areas:
  • • • Its primary purpose is to advance social development and formulate policies and recommendations to address global social issues.
      • It focuses on topics such as poverty eradication, social inclusion, and the promotion of equitable and sustainable development.
  • Since the 1995 World Summit for Social Development in Copenhagen, the CSocD has been the key UN body in charge of the follow-up and implementation of the Copenhagen Declaration and Programme of Action.
  • Recent developments:
  • • 63rd Session (2025): The theme focused on “Strengthening solidarity, social inclusion, and social cohesion” to accelerate the 2030 Agenda.
    • 64th Session (2026): It is scheduled to take place from 2 to 11 February 2026 in New York.

  Source:

  • PIB

• Category: Environment and EcologyContext:
• • Recently, Union Minister for Environment, Forest and Climate Change announced that Patna Bird Sanctuary and Chhari-Dhand have been included in the Ramsar sites list.

  About Patna Bird Sanctuary:

  • Location: It is located in the state of Uttar Pradesh.
  • • Composition: It consists of freshwater marshes, woodlands and grasslands, and is surrounded by agricultural landscapes.
    • Area: It is the smallest bird sanctuary in Uttar Pradesh, covering an area of approximately 1.09 sq. km (108 hectares).
  • Status: Established in 1991, it is also designated as an Important Bird and Biodiversity Area (IBA) by BirdLife International.
  • Wetland type: It is a natural, freshwater, rain-fed wetland (shallow depression) characteristic of the Gangetic plains.
  • • Cultural significance: The sanctuary houses an ancient Shiva temple, and the local religious sentiment against hunting has contributed to the “tameness” of the birds found there.
  • Flora and fauna: It consists of 178 bird species and 252 plant species.

  About Chhari-Dhand Wetland:

  • Location: It is located in Kutch, Gujarat.
  • Nature: It is a seasonal saline wetland situated between the famous Banni grasslands and salt flats of Kutch.
  • Nomenclature: “Chhari” means saline and “Dhand” means a shallow lake in the local language.
  • Type: It becomes swampy during the monsoon, fed by north-flowing rivers and runoff from surrounding hills.
  • Conservation status: It was declared Gujarat’s first Conservation Reserve in 2008. It is designated as a Ramsar Site in 2026, making it Gujarat’s 5th such site (alongside Nal Sarovar, Thol, Khijdia, and Vadhwana).
  • Fauna: It supports species such as critically endangered sociable lapwing, the vulnerable common pochard, and, notably, common cranes (Grus grus) annually.
  • Flora: It features unique arid-adapted plants like the Indian gum tragacanth and the critically endangered Indian bdellium-tree (Commiphora wightii).

  Source:

  • PIB

• Category: EconomyContext:
• • Oil India undertook a seismic study of the blocks it was awarded during the ninth round of the Open Acreage Licensing Policy to chart a bidding strategy for the tenth round.

  About Open Acreage Licensing Policy (OALP):

  • • Launch: It was introduced by the Government of India (GoI) as a part of the Hydrocarbon Exploration and Licensing Policy (HELP) on March 30, 2016. HELP replaced the New Exploration and Licensing Policy (NELP) regime, which was in existence for over 18 years. 
    • Nature: OALP is a major reform that changed how companies can apply for oil & gas exploration blocks in India. Under the OALP, the company has the option to undertake prospecting for fuels in areas which are not notified by the GoI. 
    • Difference from previous system: Until the OALP was introduced, exploration for hydrocarbons was allowed only in the case of areas covered by the tenders issued by the Government of India (GoI).
  • Process:
  • • • The OALP gives a company the opportunity to prospect for fuels in any area where the technical feasibility study indicates the presence of hydrocarbons.
      • Once the feasibility study shows the presence of hydrocarbons, the company can proceed with the exploration after obtaining permission from the Directorate General of Hydrocarbons (DGH).
  • If multiple requests for sanction are received for the same area, the DGH will make an allotment by conducting an auction. 
  • • National Data Repository (NDR): The OALP regime also allows companies access to seismic data at the National Data Repository (NDR). A crucial pillar of OALP, the NDR is a centralized online database providing geological and seismic data, allowing investors to make informed decisions before bidding.
  • Significance:
  • • Quick exploration: Under the OALP the exploration can be made without waiting for an announcement from the GoI that an area is available for exploration.
    • Ease of doing business: By removing “red-tapism” and administrative discretion, it aims to attract global energy giants.
    • Energy security: The policy supports India’s goal of reducing crude oil import dependency (historically targeted at a 10% reduction) by boosting domestic production.

  Source:

  • The Hindu

(UPSC GS Paper III – Indian Economy: Growth, Budgeting, Manufacturing, Infrastructure, External Sector)

Context (Introduction)

Budget 2026 is framed amid heightened geopolitical and geoeconomic uncertainty, trade disruptions, tariff wars, and fragile global supply chains. Instead of headline reforms, it adopts a calibrated, multi-sector approach to sustain medium-term growth and economic resilience.

Current Economic Situation

• Growth with fragility: India remains among the fastest-growing major economies (6.5–7%), but manufacturing share in GDP and employment has stagnated, indicating premature deindustrialisation.
• External shocks: U.S. tariffs on labour-intensive exports (textiles, leather, seafood) and China’s export curbs on critical minerals have heightened vulnerability.
• Investment slowdown: Fixed capital formation remains modest; net FDI inflows have fallen close to zero as a share of GDP.
• Import dependence: Rising reliance on imported capital goods, electronics components, rare earths, and intermediates, especially from China.
• Fiscal backdrop: Post-COVID fiscal consolidation has progressed, but global uncertainty limits space for aggressive deficit reduction.

Key Budget 2026 Strategy and Rationale

• Shift from “Big Bang” to diffusion: Recognising uncertainty, the Budget avoids disruptive reforms and instead deploys multiple targeted interventions across sectors.
• Manufacturing-centric thrust: Seven strategic sectors identified — semiconductors, electronics, biopharma, chemicals, capital goods, textiles, rare earths — to address import dependence.
• Correcting inverted duty structures: Reduction in customs duties on capital and intermediate goods to improve domestic value addition and investment incentives.
• Labour-intensive focus: MSMEs, textiles, leather and seafood targeted to cushion export shocks and preserve employment.
• Public capex as anchor: With private investment hesitant, government-led infrastructure spending continues as the primary growth driver.

Major Budgetary Interventions

• Capex push: Capital expenditure raised to ₹12.2 lakh crore (4.4% of GDP), highest in over a decade; freight corridors, logistics, rail and waterways prioritised.
• Semiconductor & electronics: India Semiconductor Mission 2.0 and ₹40,000 crore Electronics Component Manufacturing Scheme to deepen domestic supply chains.
• Biopharma SHAKTI: ₹10,000 crore over five years to position India as a global biopharma manufacturing hub.
• Rare earth corridors: Dedicated corridors across Odisha, Kerala, Andhra Pradesh and Tamil Nadu to counter China’s mineral choke points.
• MSME strengthening: ‘Champion MSMEs’, cluster modernisation, SME Growth Fund to address equity gaps; MSMEs account for ~49% of exports.
• Export facilitation: Indirect tax rationalisation for textiles, leather, marine exports; logistics support via coastal shipping and inland waterways.
• Fiscal discipline: Fiscal deficit targeted at 4.3% of GDP; debt-GDP consolidation path maintained despite calls for flexibility.

Gaps and Concerns

• Weak private investment response: Budget relies heavily on public capex; limited measures to revive high-tech FDI or proprietary technology inflows.
• Manufacturing policy fragmentation: Absence of a comprehensive industrial policy risks sectoral measures remaining disjointed.
• Employment challenge: Manufacturing employment share continues to decline; services growth shows low employment elasticity amid AI disruption.
• SEZ dilution: Allowing SEZ units to sell domestically may weaken export orientation instead of addressing structural bottlenecks.
• Centre–State silence: Fiscal federal issues and upcoming Finance Commission recommendations largely unaddressed.
• Execution risks: Past delays (e.g., Export Promotion Mission) highlight implementation as the key determinant of success.

Way Forward 

• Integrated industrial policy: Align tariffs, PLI, MSME support, logistics, and skill development under a unified manufacturing strategy.
• Crowd-in private investment: De-risk FDI through policy stability, faster clearances, and technology partnerships in semiconductors, EVs, and green tech.
• Domestic demand revival: Link manufacturing push with employment-intensive growth, wage expansion and consumption support.
• Centre–State coordination: Use capex-linked incentives and GST reforms to ensure States complement central manufacturing and logistics goals.
• Export diversification: Reduce overdependence on U.S. markets by fast-tracking EU FTA and strengthening trade ties with Global South.
• Execution-first governance: Time-bound implementation, monitoring dashboards and accountability to convert allocations into outcomes.

Conclusion 

Budget 2026 reflects strategic caution in uncertain times, prioritising resilience over spectacle. Its emphasis on public capex, manufacturing depth and supply-chain security is well-calibrated, but success hinges on execution, private investment revival and employment creation. If backed by coherent industrial policy and Centre–State alignment, the Budget can convert current headwinds into a platform for sustained, inclusive growth.

Mains Question

Q. “Budget 2026 is a blueprint for reviving manufacturing sector. Critically examine (250 words, 15 marks)

Source: The Hindu

(GS Paper II – Welfare Schemes, Social Justice, Federalism; GS Paper III – Inclusive Growth)

Context (Introduction)

Budget 2026–27 is presented amid global uncertainty and a strong domestic capex push. Unlike previous years, it introduces no new flagship welfare schemes, raising concerns about the priority accorded to human development and social protection.

Status of Social Sector Allocations

• Low nominal growth: Key schemes for vulnerable groups show marginal increases — NSAP (0.2%), Saksham Anganwadi (5.2%), SAMARTHYA, PALNA, PM POSHAN — implying real-term stagnation after inflation.
• Chronic underspending: Revised Estimates (RE) for 2025–26 are lower than Budget Estimates (BE) across most social sectors, signalling weak implementation capacity or reduced prioritisation.
• Health & education stagnation: BE 2026–27 increases of only 6.4% (health) and 8.3% (education), while RE 2025–26 fell below BE by 3.7% and 5.2%, respectively.
• Sharp RE cuts: Urban Development (-41%), Rural Development (-20%), North-East Development (-24%), Social Welfare (-17%) show major mid-year contraction.
• Flagship dilution: Jal Jeevan Mission RE plunged from ₹67,000 crore (BE) to ₹17,000 crore; PMAY-Grameen and PMAY-Urban REs fell sharply, though 2026–27 allocations merely restore earlier levels.

Key Issues and Structural Concerns

• Capex-first bias: Over ₹12 lakh crore allocated to capital expenditure without clear evidence of employment generation or private investment crowd-in.
• Neglect of demand-side: Budget continues supply-side focus despite persistent challenges — educated youth unemployment, low wages, weak purchasing power.
• Human capital blind spot: Education, nutrition, health and social security — critical for productivity and long-term growth — remain peripheral in fiscal prioritisation.
• CSS underspending: Centrally Sponsored Schemes fell from ₹5.41 lakh crore (BE 2025–26) to ₹4.20 lakh crore (RE), indicating systemic execution gaps.

Shift of Welfare Burden to States 

• Changing cost-sharing norms: Post-2015 reforms increased States’ contribution in most CSS; even wage-employment support now follows shared funding.
• VB-G RAM G example: ₹96,000 crore central allocation requires ~₹56,000 crore State share (60:40), straining State finances.
• Shrinking State fiscal space: States receive only ~34% of total tax revenue, far below the 41% recommended by the Finance Commission, due to rising cesses and surcharges.
• Declining grants: Finance Commission grants reduced from ₹1.32 lakh crore (BE 2025–26) to ₹1.29 lakh crore (BE 2026–27).
• Asymmetry risk: Centre legislates welfare norms while States bear implementation costs, potentially widening inter-State and intra-State inequalities.

Way Forward

• Rebalance growth strategy: Complement capex with targeted social spending to boost demand, employment and human capital formation.
• Protect core welfare: Index social sector allocations to inflation and demographic needs, especially for children, women, elderly and disabled.
• Improve utilisation: Strengthen last-mile delivery, reduce mid-year cuts, and enforce outcome-based monitoring for CSS.
• Restore fiscal federalism: Reduce cesses/surcharges, enhance untied transfers, and ensure predictable State finances.
• Integrate policy lens: Recognise education, health, nutrition and social security as economic investments, not residual expenditures.

Conclusion

Budget 2026–27 signals continuity in infrastructure-led growth but consolidates a retreat of the Centre from welfare financing. By shifting social sector responsibility to fiscally constrained States and underfunding human development, it risks weakening inclusive growth. Sustained economic resilience requires restoring balance between physical infrastructure and social infrastructure.

UPSC Mains Question

27. Critically analyse the trajectory of social sector expenditure in India since the 1991 economic reforms, with special reference to the priorities reflected in Budget 2026–27. (250 words, 15 marks)

Source: The Hindu