NABARD Grade A Current Affairs — 8 October 2026

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, sets total expenditure at ₹50,65,345 crore and total receipts (excluding borrowings) at ₹34,96,409 crore. The fiscal deficit target is 4.4% of GDP. A landmark personal income tax change exempts income up to ₹12 lakh from tax. Capital expenditure is pegged at ₹11,21,471 crore. The budget's four engines of growth are agriculture, MSMEs, investment, and exports, framed under the theme 'Sabka Vikas'.

The Union Budget is the government's annual financial statement under Article 112 of the Constitution, presenting estimated receipts and expenditure for the financial year. For 2026-27, the budget operationalises several macro-fiscal concepts aspirants must understand.

**Fiscal Deficit** is the gap between total government expenditure and total receipts excluding borrowings. At 4.4% of GDP, this is part of India's medium-term fiscal consolidation path under the FRBM Act, which targets bringing the deficit toward 4.5% in 2025-26 and further in subsequent years.

**Capital Expenditure (Capex)** at ₹11,21,471 crore represents spending that creates long-term productive assets (roads, railways, ports). High capex has a multiplier effect on GDP and crowds-in private investment — a key mechanism the RBI Grade B examiner tests.

**Revenue Deficit** is the excess of revenue expenditure over revenue receipts, showing how much of borrowings fund current consumption rather than assets.

**Tax-to-GDP ratio** and direct vs. indirect tax composition are recurring analytical angles. The zero-tax threshold raised to ₹12 lakh under the new regime reduces revenue from personal income tax but aims to boost consumption demand — a fiscal-monetary policy coordination angle.

**Four engines of growth** (agriculture, MSMEs, investment, exports) reflect the government's structural priorities — each linked to specific scheme allocations that NABARD and RBI examiners test through 'withheld datum' questions on allocation amounts.

India's Ministry of Agriculture promotes Resilient Production Systems combining Zero Budget Natural Farming, integrated farming, and crop diversification to reduce input costs and climate vulnerability. Key components include ZBNF, agro-forestry, integrated pest management, and mixed cropping. These systems aim to improve soil health, cut dependence on chemical inputs, and stabilise farm income. The approach targets small and marginal farmers, aligning with broader goals of doubling farmer incomes and sustainable food security under national agricultural policy frameworks.

Resilient Production Systems (RPS) in Indian agriculture refers to a suite of farming practices designed to withstand climate shocks while reducing input dependency. The core of this framework is Zero Budget Natural Farming (ZBNF), pioneered by Subhash Palekar, which relies on four inputs derived from a single cow: Jeevamrit (fermented microbial culture), Bijamrit (seed treatment), Acchadana (mulching), and Whapasa (soil aeration). ZBNF eliminates purchased chemical fertilisers and pesticides, dramatically cutting production costs — hence 'zero budget.'

Beyond ZBNF, resilient systems encompass Integrated Farming Systems (IFS), which combine crop production with allied activities like animal husbandry, fisheries, and horticulture on the same landholding to diversify income streams. Agro-forestry integrates trees with crops to improve microclimates and provide additional income. Integrated Pest Management (IPM) uses biological controls, resistant varieties, and targeted chemical use as a last resort.

Crop diversification — shifting from monocultures toward multiple crops including millets, pulses, and oilseeds — is central to both resilience and nutritional security goals. Millets, designated as 'Shree Anna,' are specifically promoted for their climate resilience and low water requirement.

These systems connect directly to several flagship schemes: Paramparagat Krishi Vikas Yojana (PKVY) for organic farming clusters, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for water efficiency, and the National Mission for Sustainable Agriculture (NMSA) under the National Action Plan on Climate Change (NAPCC). The policy rationale is to secure food production against increasingly erratic monsoons while making farming economically viable for the 86% of Indian farmers who are small or marginal.

India's agricultural sector has undergone a structural transformation since 2014-15, with food grain production reaching 331.96 million tonnes in 2023-24 and agricultural exports touching ₹2.37 lakh crore in 2022-23. The government has expanded MSP coverage, launched PM-KISAN providing ₹6,000 annually to farmers, created 10,000 FPOs, and pushed natural farming adoption. Allied sectors — fisheries, animal husbandry, and horticulture — now contribute significantly to agricultural GDP and rural employment.

This PIB factsheet consolidates the key metrics and flagship schemes transforming Indian agriculture across three pillars: crop production, farmer income support, and allied sectors.

**Crop Production & MSP:** Food grain output has grown from about 252 MT in 2014-15 to 331.96 MT in 2023-24 — a 32% jump in a decade. The government has consistently raised MSP above the cost of production, now guaranteeing at least 50% returns over input costs (C2+50% formula for most crops).

**Farmer Income & Direct Benefit:** PM-KISAN (Pradhan Mantri Kisan Samman Nidhi), launched in 2019, transfers ₹6,000/year in three equal instalments directly into farmer accounts. Over ₹3.04 lakh crore has been disbursed to more than 11 crore farmer families. PM Fasal Bima Yojana provides crop insurance; the Kisan Credit Card scheme delivers low-interest credit.

**FPOs and Collectivisation:** The government has committed to forming 10,000 Farmer Producer Organisations (FPOs) to improve market access and bargaining power for small and marginal farmers.

**Allied Sectors:** India is now the world's largest milk producer (over 230 MT annually) and second-largest fish producer. The Blue Revolution and PM Matsya Sampada Yojana (₹20,050 crore outlay) target doubling fisheries exports. Horticulture output now rivals food grains at over 352 MT.

**Organic & Natural Farming:** The Paramparagat Krishi Vikas Yojana (PKVY) and National Mission on Natural Farming drive chemical-free cultivation to reduce input costs and improve soil health.