UPSC 2025 Notification is Out – Everything You Need to Know

📌 Prelims Focus Areas

For Prelims, aspirants should focus on factual information, government schemes, economic indicators, and key definitions. The following areas are critical:

1️⃣ Important Schemes & Initiatives

✅ Agriculture & Rural Development:

PM Dhan Dhanya Krishi Yojana (PMDDKY) – First phase across 100 agriculture districts (like Aspirational Districts Programme)
National Mission on High Yielding Seeds – Focus on climate-resilient, high-yield seeds
Mission for Cotton Productivity – 5-year plan for cotton farmers
Makhana Board (Bihar) – Boosting fox nut (makhana) production
Increase in KCC Loan Limit: ₹3 lakh → ₹5 lakh under Interest Subvention Scheme
India Post Transformation – Logistics & financial inclusion in rural areas

✅ MSME & Startup Support:

Custom Credit Cards (₹5 Lakh limit) for micro industries via Udyam portal
New Fund of Funds (₹10,000 Cr) for startups
Loan scheme for SC/ST/Women entrepreneurs (₹2 Cr limit)
Toy Manufacturing Initiative – 'Make in India' boost for the toy industry

✅ Infrastructure & Investments:

Jal Jeevan Mission Extended to 2028 – 100% tap water coverage
₹1 Lakh Cr Urban Challenge Fund – Development of 'Cities as Growth Hubs'
Nuclear Energy Mission (₹20,000 Cr) – R&D on Small Modular Reactors (SMRs)
Shipbuilding & Maritime Fund (₹25,000 Cr) – Strengthening India's shipbuilding capacity

✅ Exports & Trade:

Export Promotion Mission – MSME access to global markets
BharatTradeNet – Digital platform for trade financing & documentation
Eased trade regulations – Boost for air cargo, perishable goods exports

✅ Financial Reforms:

FDI in Insurance increased to 100%
Pension Sector Reforms – Regulatory body for better coordination
Grameen Credit Score – Credit framework for rural entrepreneurs

✅ Taxation & Fiscal Management:

TDS limit on rent increased from ₹2.4L to ₹6L
TCS decriminalization, voluntary compliance for tax filing extended from 2 to 4 years
Fiscal Deficit: 4.8% (2024-25) → 4.0% (2025-26)

2️⃣ Economic Indicators for Prelims (Data-Based Questions)

📊 Growth & Fiscal Indicators:

GDP Growth Projection (FY26): 6.3% - 6.8%
Fiscal Deficit Target: 4.0% of GDP (2025-26)
Capital Expenditure: ₹10.18 Lakh Cr (2024-25)
Gross Market Borrowing: ₹14.82 Lakh Cr

📉 Inflation & Revenue Trends:

Retail Inflation (April-Dec 2024): 4.9%
Gross Tax Revenue Growth (April-Nov 2024): 10.7% YoY
FDI Inflows (FY25): $55.6B (+17.9% YoY)
Forex Reserves (Jan 2025): $634.6B

📌 Mains Focus Areas (GS-3 & GS-2)

For Mains, aspirants must analyze the policy implications, challenges, and structural reforms in the economy.

1️⃣ Agriculture & Rural Development (GS-3: Agriculture & Economy)

Significance of Makhana cultivation – Role in rural employment & Bihar's economy
Self-Sufficiency in Pulses – Policy on Toor, Urad, Masur production & procurement
PM Dhan Dhanya Krishi Yojana – Agricultural district development model
Role of Kisan Credit Cards (KCC) expansion in boosting rural credit

📝 Mains Question: "Discuss the significance of rural-centric programs like PM Dhan Dhanya Krishi Yojana in ensuring agricultural sustainability and rural employment."

2️⃣ MSME & Startup Support (GS-2: Good Governance & Economy)

Expansion of MSME Credit Guarantee Scheme – Implications for Atmanirbhar Bharat
Fund of Funds for Startups – Impact on job creation & innovation
Toy Manufacturing Scheme – How it boosts domestic manufacturing under 'Make in India'
Credit Inclusion for Women, SC/ST Entrepreneurs – Promoting financial equity

📝 Mains Question: "Critically analyze the impact of expanded credit access for MSMEs and startups in boosting economic resilience and entrepreneurship in India."

3️⃣ Infrastructure & Investment Growth (GS-3: Economy)

Jal Jeevan Mission Extension – Water security & rural development
Nuclear Energy Mission (₹20,000 Cr) – Future of Small Modular Reactors (SMRs)
Urban Challenge Fund (₹1 Lakh Cr) – Role of urban development in economic growth
Shipbuilding & Maritime Fund (₹25,000 Cr) – India's potential in shipbuilding

📝 Mains Question: "What role does nuclear energy play in India's sustainable energy future? Discuss the significance of the Nuclear Energy Mission 2025."

4️⃣ Fiscal Policy & Taxation (GS-3: Economy)

Fiscal Deficit Reduction (4.8% → 4.0%) – Challenges in fiscal consolidation
TDS Limit on Rent Raised – Implications for middle-class taxpayers
Voluntary Compliance Expansion (4 Years for Tax Filings) – Encouraging tax base expansion

📝 Mains Question: "What steps can India take to enhance tax compliance and fiscal discipline while maintaining economic growth?"

5️⃣ Export & Trade Policies (GS-2: International Relations & GS-3: Economy)

BharatTradeNet: Digitization in trade finance & documentation
Export Promotion Mission: Support for MSMEs in global markets
Eased trade norms for perishable goods & seafood exports

📝 Mains Question: "India's export promotion policies have seen a shift toward digitization and MSME inclusion. Analyze how BharatTradeNet can transform India's trade ecosystem."

6️⃣ Financial Sector Reforms (GS-3: Economy)

100% FDI in Insurance Sector: Implications for financial sector liberalization
Grameen Credit Score: How it enhances rural financial inclusion
Pension Sector Coordination Forum: Need for pension sector reforms

📝 Mains Question: "The pension sector in India needs better regulatory coordination for improved financial security. Critically analyze the recent pension sector reforms proposed in Budget 2025."

What is the Union Budget?

The Union Budget (technically called the Annual Financial Statement) is presented under Article 112 of the Indian Constitution
It provides an account of the government's finances, detailing:
- Revenue generation (tax & non-tax receipts)
- Expenditures (welfare schemes, infrastructure, defense, etc.)
- Borrowings to cover the fiscal gap

Important Budget Documents

📌 A. Constitutionally Mandated Documents

Annual Financial Statement (AFS) – Under Article 112 (Details government receipts & expenditures)
Demands for Grants (DG) – Under Article 113 (Expenditure proposals requiring Lok Sabha approval)
Finance Bill – Under Article 110 (Proposes new taxation or tax changes)

📌 B. Documents Under the FRBM Act, 2003

Macro-Economic Framework Statement – Presents economic trends & fiscal policy goals
Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement – Lays out government's fiscal strategy for the next 3 years

Key Budget Terms Explained

📌 A. Revenue & Capital Budgets

Revenue Budget:
- Includes tax & non-tax revenue and revenue expenditures
- Tax revenue: Income from Income Tax, GST, Customs Duties, etc.
- Non-tax revenue: Dividends, interest earnings, etc.
Capital Budget:
- Capital receipts: Government borrowings, loans from the public, disinvestment proceeds
- Capital expenditure: Spending on infrastructure, buildings, machinery, technology, etc.
- Results in asset creation & economic growth

📌 B. Deficit Concepts

Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-Debt Capital Receipts)
Indicates the government's total borrowing requirement

📌 C. Parliamentary Procedures

Demands for Grants:
- Under Article 113, Lok Sabha votes on government expenditure proposals from the Consolidated Fund of India
Money Bill (Article 110):
- Deals only with taxation, borrowing, and financial matters
- Lok Sabha has sole decision-making power; Rajya Sabha can only suggest amendments
Finance Bill:
- Presented alongside the Budget
- Includes taxation proposals (Income tax changes, GST modifications)
- Unlike Money Bills, Rajya Sabha recommendations can be included

📝 Conclusion

🔹 For Prelims: Focus on schemes, fiscal data, tax reforms, and infrastructure projects.
🔹 For Mains: Prepare analytical answers on agriculture, MSMEs, investment, exports, and fiscal policy.
🔹 Interlink with PYQs: Relate Budget themes with past questions on economic reforms, financial inclusion, and infrastructure development.

This Budget 2025 is crucial for UPSC Prelims & Mains, emphasizing structural reforms, fiscal discipline, and inclusive growth.

Margdarshan IAS

By Sid Bhaiya

Union Budget 2025: Key Focus Areas for UPSC Prelims & Mains