Government Schemes: January to March 2026
Each scheme is broken down here with its objective, target, allocation, and the static syllabus connection.
1. Union Budget 2026-27: Key Provisions for UPSC
The fiscal framework
| Indicator | 2025-26 (RE) | 2026-27 (BE) |
|---|---|---|
| Fiscal Deficit (% of GDP) | 4.8% | 4.5% |
| Revenue Deficit (% of GDP) | 2.1% | 1.8% |
| Capital Expenditure (₹ lakh crore) | 11.8 | 13.2 |
| Total Expenditure (₹ lakh crore) | 49.5 | 52.8 |
| Gross Tax Revenue (₹ lakh crore) | 38.2 | 41.5 |
The fiscal consolidation path remains on track: from 4.8 percent in 2025-26 to 4.5 percent in 2026-27, targeting below 4.5 percent by 2027-28. Capital expenditure continues to be the primary growth engine, with a 12 percent increase over the revised estimates for 2025-26.
Key announcements
| Scheme/Provision | Details | Prelims Fact |
|---|---|---|
| PM-KISAN enhanced | Annual transfer increased from ₹6,000 to ₹8,000 per farmer. Coverage expanded to include tenant farmers and sharecroppers, adding approximately 2.5 crore new beneficiaries | PM-KISAN launched 2019. DBT scheme. Ministry of Agriculture |
| Jal Jeevan Mission: Phase II | Target: piped water to every rural household by 2028. Phase I achieved 78% coverage. Phase II allocation: ₹1.2 lakh crore. Focus on water quality (arsenic and fluoride-affected habitations) and greywater management | JJM launched 2019. Ministry of Jal Shakti. Target originally 2024, extended |
| National Research Foundation (NRF) operationalisation | The NRF, announced in NEP 2020 and legislated in 2023, received its first full-year budget of ₹16,000 crore. The NRF will fund research projects at universities, with 70% of the funding coming from non-government sources (industry, philanthropy) | NRF. NEP 2020. Modelled on the US National Science Foundation |
| Green Bond proceeds deployment | ₹25,000 crore raised through sovereign green bonds in 2025-26 was allocated to specific projects: ₹8,000 crore for renewable energy transmission, ₹6,000 crore for afforestation, ₹5,000 crore for electric bus procurement, ₹6,000 crore for coastal protection | Sovereign green bonds. First issued in 2023. Framework aligned with ICMA Green Bond Principles |
| Tax rationalisation | The new tax regime was made more attractive: standard deduction raised to ₹75,000. Tax slabs restructured: 0% up to ₹4 lakh, 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, 15% for ₹12-16 lakh, 20% for ₹16-20 lakh, 25% for ₹20-24 lakh, 30% above ₹24 lakh. The old tax regime was retained but the government signalled its intent to phase it out by 2028 | New vs old tax regime. Direct tax reform |
The budget's structural story
Three themes define this budget. First, the capital expenditure-led growth strategy continues. The government has increased capex by approximately 40 percent over three years. Second, fiscal consolidation with a human face: the deficit is declining, but spending on health, education, and social protection is not being cut. Third, the green transition is being funded through dedicated instruments (green bonds) rather than through the general budget, creating a ring-fenced pool of climate finance.
2. National Urban Employment Guarantee Scheme (NUEGS) Launch (February 2026)
What it is
Modelled on MGNREGA, the National Urban Employment Guarantee Scheme provides 100 days of guaranteed wage employment per household per year in urban areas. The scheme was launched on a pilot basis in 25 cities with a population above 10 lakh, with a three-year rollout plan to cover all urban local bodies by 2029.
| Parameter | Details |
|---|---|
| Wage rate | ₹400 per day (linked to CPI-Urban and revised annually) |
| Eligible works | Urban greening (tree planting, park maintenance), solid waste management, construction and maintenance of public toilets, rainwater harvesting structures, digitisation of municipal records, COVID and disaster preparedness |
| Implementing agency | Urban Local Bodies (ULBs), with supervision by State Urban Employment Guarantee Councils |
| Funding | 60:40 Centre:State for non-North-Eastern states. 90:10 for North Eastern and Himalayan states. 100% Centre for UTs |
| Budget allocation | ₹32,000 crore for 2026-27 |
Why this matters
MGNREGA (2005) created a legal right to employment in rural areas. There was no equivalent in urban areas, despite urban unemployment being consistently higher than rural unemployment. The Periodic Labour Force Survey (PLFS) 2024-25 showed urban unemployment at 7.6 percent, compared to 3.8 percent in rural areas. NUEGS fills this gap.
However, NUEGS differs from MGNREGA in one crucial respect: the works permitted under NUEGS are primarily municipal services (waste management, greening, sanitation). MGNREGA works, by contrast, are primarily agricultural and rural infrastructure (water conservation, land development, rural connectivity). This means NUEGS workers are essentially doing the work of municipal corporations. This raises two questions: is this duplicating existing municipal expenditure? And is it sustainable once the scheme expands?
3. PM-KISAN 2.0 and Agriculture Infrastructure Fund Phase II (March 2026)
PM-KISAN 2.0
The PM-KISAN scheme, launched in 2019, provides direct income support to farmers. Phase I provided ₹6,000 per year in three instalments. The budget enhanced this to ₹8,000. But the more significant change was structural: the scheme was integrated with the Agristack, India's digital agriculture platform.
Under PM-KISAN 2.0, eligible farmers are identified through the Agristack, which integrates land records (digitised under the Digital India Land Records Modernisation Programme), Aadhaar (for identity verification), and bank accounts (for DBT). This means the scheme is now entirely digital: identification, verification, and transfer happen without human intervention. The government claims this has eliminated ghost beneficiaries and middlemen. Critics argue that tenant farmers and sharecroppers, who do not own land and therefore do not appear in land records, remain excluded despite the scheme nominally covering them.
Agriculture Infrastructure Fund (AIF) Phase II
The Agriculture Infrastructure Fund, launched in 2020, provides subsidised loans for post-harvest infrastructure: warehouses, cold storage, pack houses, and sorting and grading units. Phase I sanctioned ₹1.2 lakh crore in loans. Phase II, approved in March 2026, adds three new components:
| Component | Allocation | Target |
|---|---|---|
| Primary processing units at the farm gate | ₹15,000 crore | 50,000 units over three years. Small-scale dal mills, oil extraction units, and spice processing. These allow farmers to capture value rather than selling raw produce |
| Solar cold storage | ₹8,000 crore | 25,000 units. Off-grid, solar-powered cold storage for horticulture produce. Addresses the twin problems of post-harvest loss (estimated at 16% for fruits and vegetables) and high energy costs |
| Digital agriculture extension | ₹5,000 crore | AI-based crop advisory services, weather forecasting, and pest prediction delivered through the Agristack platform. Partnership with IITs and agritech startups |
4. Other schemes this quarter
| Scheme | Date | Ministry | Key Provision | Prelims Fact |
|---|---|---|---|---|
| PM Awas Yojana (Urban) 2.0 | January 2026 | Housing and Urban Affairs | Target: 1 crore additional houses by 2029. Interest subsidy of up to ₹2.67 lakh for EWS and LIG households. Beneficiaries identified through SECC 2011 data, updated with Aadhaar linkage | PMAY-U launched 2015. Credit-linked subsidy scheme |
| National Tele-Mental Health Programme expansion | January 2026 | Health | The Tele-MANAS helpline expanded to provide counselling in 22 languages. Over 10 lakh calls handled in 2025-26. Integration with Ayushman Bharat HWCs for referral | Tele-MANAS launched 2022. National mental health helpline |
| Vibrant Villages Programme Phase II | February 2026 | Home Affairs | 650 border villages in Uttarakhand, Himachal Pradesh, Sikkim, and Arunachal Pradesh to receive infrastructure development (roads, connectivity, tourism). Budget: ₹4,800 crore. Counter to Chinese border infrastructure in Tibet | Vibrant Villages. Border Area Development. Alternative to the earlier Border Area Development Programme |
| Deep Ocean Mission milestones | March 2026 | Earth Sciences | The Matsya-6000 submersible successfully completed a 5,000-metre test dive in the Indian Ocean. India became the sixth country to operate a manned submersible at this depth. The Samudrayaan mission targets a 6,000-metre crewed dive in 2027 | Deep Ocean Mission. MATSYA-6000. Samudrayaan. Ministry of Earth Sciences |
For broader context on fiscal policy, read our guide on fiscal deficit and the FRBM Act.