Fiscal Consolidation Shift

  • Total expenditure falling to 13.6% of GDP
  • Indicates prioritisation of fiscal consolidation over welfare expansion

Safety Net Cuts

  • PM Fasal Bima Yojana: Effective reduction of ~15.7% — dropped from ₹14,473 crore (actual expenditure) to ₹12,200 crore (allocation), despite rising climate-related crop losses
  • Ujjwala Scheme: Allocation slashed by 28% compared to last year’s revised estimates

UPSC Angle

  • GS3: Budgetary provisions, fiscal policy, agricultural insurance

📌 Facts Corner — Knowledgepedia

Budget 2026-27:

  • Total expenditure: 13.6% of GDP
  • PM Fasal Bima Yojana cut: ~15.7% (₹14,473 cr → ₹12,200 cr)
  • Ujjwala Scheme cut: 28% from revised estimates