RBI Grade B Current Affairs — 3 October 2026

India's Department of Agriculture and Farmers Welfare budget rose from ₹27,663 crore in 2013-14 to ₹1,40,528.78 crore in 2026-27, a five-fold increase over thirteen years. This growth reflects sustained policy emphasis on MSP revision, digital agriculture, crop insurance, and allied sectors including fisheries and animal husbandry. The expansion spans flagship schemes such as PM-KISAN, PM Fasal Bima Yojana, and the Pradhan Mantri Matsya Sampada Yojana, all aimed at doubling farmer income and improving food security.

The five-fold rise in agricultural budget allocation signals a structural shift in how India prioritises agrarian policy. Three interconnected pillars explain this expansion.

First, income support: PM-KISAN alone transfers ₹6,000 per year directly to over 11 crore farmer families, making it one of the world's largest direct benefit transfer programmes. This bypasses intermediaries and links Aadhaar-verified beneficiaries directly to public funds.

Second, risk management: PM Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme provide actuarial-backed insurance at heavily subsidised premiums — farmers pay 2% for kharif, 1.5% for rabi, and 5% for horticulture, with the Centre and states sharing the remaining premium burden.

Third, allied-sector investment: Pradhan Mantri Matsya Sampada Yojana (PMMSY), with an outlay of ₹20,050 crore, is the largest-ever investment in India's fisheries sector, targeting 70 lakh additional employment and 9% growth in fisheries GVA. Similarly, the Animal Husbandry Infrastructure Development Fund (AHIDF) supports private investment in dairy and meat processing.

For exam purposes, the key analytical point is that Indian agricultural policy has moved from subsidy-led input support (fertiliser, power) toward output-price assurance (MSP), income transfers (PM-KISAN), and value-chain investment (PMMSY, AHIDF). NABARD's role as the apex development finance institution sits at the centre of rural credit delivery, refinance, and supervision of cooperative banks — all amplified by this budget expansion.

The Central Board of Direct Taxes has extended the deadline for filing income tax returns and tax audit reports for Assessment Year 2026-27. The revised deadline moves the filing date to 1 October 2026. This extension applies to taxpayers whose accounts are subject to mandatory audit under the Income Tax Act. Such deadline extensions are periodically granted by CBDT under Section 119 of the Income Tax Act, which empowers the Board to relax compliance timelines.

The income tax reassessment process and related compliance deadlines sit at the intersection of fiscal administration and taxpayer rights — a zone examiners mine repeatedly. Understanding this requires three layers.

**CBDT's power under Section 119:** CBDT can issue circulars extending deadlines for ITR filing, tax audits, and other compliances. These are not legislative changes but administrative orders. The legal basis is Section 119(2)(a) of the Income Tax Act, 1961.

**Assessment Year vs Financial Year:** AY 2026-27 corresponds to income earned in Financial Year 2025-26. This distinction matters because tax liability is calculated for the financial year but assessed in the following assessment year.

**Tax Audit under Section 44AB:** Taxpayers whose turnover exceeds prescribed thresholds (₹1 crore for business; ₹50 lakh for professionals, with higher limits for digital transactions) must get accounts audited by a Chartered Accountant. The audit report is filed via Form 3CA/3CB and Form 3CD.

**Reassessment — the larger context:** Beyond deadline extensions, the reassessment process under Sections 147–153 allows the tax department to reopen completed assessments if income has escaped assessment. The Finance Act 2021 overhauled this framework, replacing the old Section 148 notices with a risk-based, time-bound process requiring approval from higher authorities and limiting the look-back period.

For exam purposes, connect CBDT circulars to fiscal federalism, taxpayer rights, and the constitutional backing for direct taxation under Article 246 read with List I of the Seventh Schedule.

The Economic Survey 2024-25 highlights that Kisan Credit Cards have been extended to 4.39 lakh fishers under India's fisheries welfare framework, providing them insurance coverage and formal credit access for the first time. The Pradhan Mantri Matsya Sampada Yojana and related schemes target a doubling of fish production, expansion of deep-sea fishing, and strengthening of the cold-chain infrastructure, integrating the sector into formal financial and welfare systems.

India's fisheries sector contributes approximately 1.09% of GDP and over 6% of global fish production, making it the third-largest fish-producing nation. Despite this scale, most of India's 28 million fishers historically lacked formal credit access, insurance, or welfare coverage — classic financial exclusion in an occupation with high income volatility due to weather, seasonal bans, and market fluctuations.

The extension of Kisan Credit Cards (KCC) to fishers is a structural financial inclusion move. KCC provides short-term revolving credit at subsidised interest rates (currently 4% p.a. with interest subvention). When extended to fishers, it brings them into the priority sector lending framework, obligating banks under RBI's PSL guidelines to count such loans toward their agriculture sub-target.

Pradhan Mantri Matsya Sampada Yojana (PMMSY), launched in 2020 with an outlay of ₹20,050 crore over five years, is the flagship scheme. It targets raising fish production from 13.75 million tonnes to 22 million tonnes by 2024-25, doubling fishers' incomes, and creating 55 lakh additional employment opportunities. The scheme operates through a hub-and-spoke model integrating production, processing, and cold-chain logistics.

For NABARD, the fisheries sector sits within its agricultural credit mandate. NABARD refinances state cooperative banks and RRBs for fisheries loans and monitors flow of institutional credit to this sector. The insurance coverage component links to schemes like PMMSY's group accident insurance for active fishers during fishing operations.

For UPSC, the governance angle involves the Ministry of Fisheries, Animal Husbandry and Dairying (MFAHD), created in 2019 as a standalone ministry — signalling the sector's policy priority. The 'Blue Economy' and India's EEZ of 2.02 million sq km form the constitutional and strategic backdrop.