CURRENT AFFAIRS | MARCH 2026
CLAT Relevance
• FM Nirmala Sitharaman’s 9th consecutive budget
• Three Kartavyas framework — growth, inclusion, investment
• Total expenditure: Rs 50.65 lakh crore
• Fiscal deficit target: 4.4% of GDP
• Article 112 — Annual Financial Statement
• FM Nirmala Sitharaman’s 9th consecutive budget
• Three Kartavyas framework — growth, inclusion, investment
• Total expenditure: Rs 50.65 lakh crore
• Fiscal deficit target: 4.4% of GDP
• Article 112 — Annual Financial Statement
Budget 2026-27 — Overview
Quick Facts
• Presented: 1 February 2026 by FM Nirmala Sitharaman
• Record: 9th consecutive budget (surpassing Morarji Desai’s record)
• Total expenditure: Rs 50.65 lakh crore
• Total receipts: Rs 39.47 lakh crore (excluding borrowings)
• Fiscal deficit: 4.4% of GDP (path to below 4.5%)
• Capital expenditure: Rs 11.21 lakh crore
• Presented: 1 February 2026 by FM Nirmala Sitharaman
• Record: 9th consecutive budget (surpassing Morarji Desai’s record)
• Total expenditure: Rs 50.65 lakh crore
• Total receipts: Rs 39.47 lakh crore (excluding borrowings)
• Fiscal deficit: 4.4% of GDP (path to below 4.5%)
• Capital expenditure: Rs 11.21 lakh crore
The Three Kartavyas
CLAT Angle — Budget Framework
The Budget 2026-27 is structured around Three Kartavyas (duties/responsibilities) — this is the thematic framework guiding all allocations and policy announcements.
The Budget 2026-27 is structured around Three Kartavyas (duties/responsibilities) — this is the thematic framework guiding all allocations and policy announcements.
Kartavya 1: Accelerating Growth
- GDP growth target: 6.5-7% for FY27
- Infrastructure push: Rs 11.21 lakh crore capex (highways, railways, ports)
- MSME support: credit guarantee enhancement, technology upgradation
- Manufacturing: PLI scheme expansion, Make in India 2.0
- Digital economy: AI Mission, semiconductor fab incentives
Kartavya 2: Securing Inclusive Development
- Agriculture: PM Kisan enhancement, Kisan Credit Card expansion
- Education: PM SETU, 1000 ITI upgrades, NEP implementation
- Health: Ayushman Bharat expansion, PM-ABHIM for health infrastructure
- Women: Gender Budget at 8.86%, Poshan 2.0
- Housing: PM Awas Yojana — 3 crore additional houses target
Kartavya 3: Stimulating Private Sector Investment
- Corporate tax: competitive rates maintained (22% for existing, 15% for new manufacturing)
- FDI reforms: further liberalisation in insurance (up to 100%), defence, retail
- Ease of doing business: regulatory simplification, single-window clearances
- Green energy: Rs 19,744 crore for Green Hydrogen Mission
- InvIT/REIT: infrastructure monetisation pipeline
Sector-wise Key Highlights
Agriculture & Rural
- PM Kisan: Rs 6,000/year to farmers (continued)
- Natural farming: 1 crore farmers targeted in 5 years
- Digital agriculture: Agri Stack, drone-based farming support
Infrastructure
- Railways: 400 Vande Bharat trains, 3 new dedicated freight corridors
- Highways: 15,000 km National Highway construction target
- Urban: Metro expansion in 25+ cities
Green Energy
- 500 GW renewable energy target by 2030
- Green Steel Taxonomy implementation support
- Battery storage: PLI-ACC Rs 18,100 crore
- EV ecosystem: charging infrastructure in 500 cities
Constitutional Framework
Constitutional Provisions
• Article 112: Annual Financial Statement to be laid before Parliament
• Article 110: Definition of Money Bill
• Article 265: No tax shall be levied except by authority of law
• Article 266: Consolidated Fund of India
• Part A: Economic policy, schemes, allocations
• Part B: Tax proposals (income tax, customs, excise)
• Article 112: Annual Financial Statement to be laid before Parliament
• Article 110: Definition of Money Bill
• Article 265: No tax shall be levied except by authority of law
• Article 266: Consolidated Fund of India
• Part A: Economic policy, schemes, allocations
• Part B: Tax proposals (income tax, customs, excise)
Key Terms for CLAT
- Fiscal deficit — Total expenditure minus total receipts (excluding borrowing)
- Capital expenditure — Spending on asset creation (infrastructure, equipment)
- Revenue expenditure — Day-to-day running costs (salaries, subsidies)
- Kartavya — Duty/responsibility (thematic framework of Budget 2026-27)
- Article 112 — Constitutional mandate for Union Budget
Source: UPSC Essentials, The Indian Express — March 2026
Practice Quiz
Test your understanding with these 10 MCQs:
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