Government Policies
Subject: Current Affairs | Time Window: Jan 2025 — Mar 2026 Exam: AP Group 2 (APPSC)
Overview
This chapter covers major central government policies, legislative changes, and budget highlights from January 2025 to March 2026. The Union Budget, new criminal laws, and trade agreements are the most testable topics.
Key Events (Chronological — Most Recent First)
| # | Date | Event | Significance |
|---|---|---|---|
| 1 | Feb 2026 | Union Budget 2026-27 | New Income Tax Act 2025 effective Apr 2026; TCS on overseas tours reduced to 2% |
| 2 | Jan 2026 | India-EU FTA concluded | Landmark deal after ~20 years of negotiations |
| 3 | Jan 2026 | Census 2027 approved | First digital census; caste enumeration (first since 1931); ₹11,718 crore |
| 4 | Dec 2025 | India-Oman CEPA signed | FTA network expanded to 9 agreements, 38 countries |
| 5 | Dec 2025 | Jal Jeevan Mission extended | Extended to Dec 2028; 15 crore households covered since 2019 |
| 6 | Oct 2025 | India-EFTA TEPA enters force | Trade with Switzerland, Norway, Iceland, Liechtenstein |
| 7 | Jul 2025 | India-UK CETA signed | Projected $34 billion annual trade enhancement |
| 8 | Jul 2024 | New Criminal Laws effective | BNS replaces IPC, BNSS replaces CrPC, BSA replaces Evidence Act |
| 9 | Apr 2025 | Waqf (Amendment) Act 2025 | 5-year practice requirement; Board must have 2 non-Muslim members |
| 10 | Feb 2025 | Union Budget 2025-26 | "Sabka Vikas"; ₹50.65 lakh crore expenditure; 4.4% fiscal deficit |
| 11 | Feb 2025 | One Nation One Election | Constitution (129th Amendment) Bill referred to JPC |
Union Budget 2025-26 Key Highlights
| Sector | Initiative | Details |
|---|---|---|
| Agriculture | PM Dhan-Dhaanya Krishi Yojana | 100 low-productivity districts; 1.7 crore farmers |
| Agriculture | Cotton Productivity Mission | 5-year mission |
| Education | Medical college seats | 10,000 additional next year; 75,000 in 5 years |
| Education | AI Centre of Excellence | ₹500 crore |
| Housing | SWAMIH Fund 2 | ₹15,000 crore; 1 lakh units |
| Digital | Bharatnet | Increased 238% to ₹22,000 crore |
| Health | Ayushman Bharat expansion | All senior citizens 70+; ₹5 lakh coverage |
New Criminal Laws (Effective Jul 1, 2024)
| Old Law | New Law | Key Changes |
|---|---|---|
| IPC 1860 | Bharatiya Nyaya Sanhita (BNS) | 358 sections (vs 511); 20 new crimes; community service for 6 crimes |
| CrPC 1973 | Bharatiya Nagarik Suraksha Sanhita (BNSS) | Fixed timelines; police custody up to 90 days; electronic summons |
| Evidence Act 1872 | Bharatiya Sakshya Adhiniyam (BSA) | Digital/forensic evidence provisions |
Key Data Points
| Metric | Value |
|---|---|
| GDP Growth (RBI, FY26) | 7.3% |
| Fiscal Deficit (Budget FY26) | 4.4% of GDP |
| Unemployment rate (Nov 2025) | 4.8% |
| Total FTAs | 9 agreements, 38 countries |
Likely Exam Questions
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The new criminal law replacing the IPC is: Ans: Bharatiya Nyaya Sanhita (BNS)
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The fiscal deficit target in Budget 2025-26 is: Ans: 4.4% of GDP
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Census 2027 will include caste enumeration for the first time since: Ans: 1931
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Under BNSS, police custody can extend up to: Ans: 90 days
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India-EFTA TEPA entered into force on: Ans: October 1, 2025
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PM Dhan-Dhaanya Krishi Yojana covers how many districts? Ans: 100 districts
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India-UK CETA projects trade enhancement of: Ans: $34 billion annually
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The Waqf Amendment Act requires how many years of Muslim practice? Ans: 5 years
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Ayushman Bharat was expanded to include: Ans: All senior citizens aged 70+ regardless of income
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India-EU FTA was concluded after how many years of negotiation? Ans: Nearly 20 years