16th FC Recommendations

• The 16th Finance Commission retained 41% tax devolution share for States while pushing outcome-linked spending and stricter fiscal discipline.

Key Recommendations by the 16th Finance Commission

• Vertical Devolution: States’ share in the divisible tax pool retained at 41%.
• Transparency Push: Annual disclosure of net tax proceeds certified by CAG under Article 279.
• Output-Based Spending: Centrally Sponsored Schemes linked to real-time measurable outcomes.

Fiscal Reform Push

• Scheme Rationalisation: High-powered committee to review and close inefficient schemes.
• Fiscal Discipline: States’ fiscal deficit capped at 3% of GSDP; Union target 3.5% of GDP.
• Off-Budget Borrowings: States advised to discontinue hidden borrowings & bring them on-budget.
• Subsidy Rationalisation: Rising subsidy burden flagged as fiscally unsound, with borrowing for transfers discouraged and sunset clauses recommended to curb long-term strain.
• PSU Reforms: States urged to evaluate PSU performance, with inactive enterprises recommended for immediate closure to reduce recurring fiscal pressure.

Revised Horizontal Devolution Formula

Horizontal Devolution Impact

• Southern Share Rise: All five southern States saw higher devolution shares, Andhra Pradesh (4.217%), Karnataka (4.131%), Kerala (2.382%), Tamil Nadu (4.097%) and Telangana (2.174%).
• North Share Dip: Uttar Pradesh’s share fell to 17.619% and Bihar’s to 9.948%, despite remaining top recipients due to population base.

Major Policy Shifts

• GDP Criterion Added: Replaced the tax effort indicator to reward efficiency and fiscal performance.
• Revenue Deficit Grants Dropped: No revenue deficit or state-specific grants during the award period.
• Performance Grants: Local body funds split into basic and performance-linked components.

Local Body & Disaster Funding

• Funding: ₹7.91 lakh crore for local bodies (FY27–FY31), disaster corpus of ₹2.04 lakh crore for States, along with a real-time disaster data platform.
• Property Tax Reform: GIS-based digital systems for better assessment and collection.
• New Disasters Added: Heatwaves and lightning to the notified national disaster list.

SC Prohibits the Use of Stem Cell Therapy for Autism Spectrum Disorder

• Supreme Court has strictly prohibited the use of stem cell therapy as a routine clinical treatment for Autism Spectrum Disorder (ASD).
• Medical Status: The court affirmed the National Medical Commission’s stance to classify the therapy for autism as an experimental procedure rather than an established standard of care.
• Liability: Medical practitioners offering this therapy as a commercial service are now liable for professional misconduct and medical malpractice.
• Consent Validity: The court ruled that “informed consent” obtained from parents is legally invalid because the treatment lacks proven scientific efficacy and safety.
• Permissible Scope: The administration of stem cells is permitted only when conducted within the strict framework of approved and monitored clinical trials.

About Stem Cell Therapy

• Biological Nature: Stem cells are undifferentiated biological cells capable of differentiating into specialised tissues and of self-renewing through division.
• Therapeutic Function: Regenerative medicine utilises these viable cells to repair, replace, or regenerate dysfunctional tissues in the body.
• Harvesting Sources: Therapeutic cells are derived from three main sources: adult tissues (such as bone marrow), early-stage embryos (embryonic stem cells), and umbilical cord blood.
• Induced Pluripotent Stem Cells (iPSCs): Scientists can reprogram adult somatic cells into an embryonic-like state to create “man-made” stem cells, bypassing the ethical concerns of using embryos

Transplant Types: Therapies are categorised into –

1. Autologous Transplant: In this mode of therapy, the patient serves as their own donor, minimising the risk of immune rejection.
2. Allogeneic Transplant: This method involves harvesting stem cells from a matched healthy donor, which carries a higher risk of Graft-versus-Host Disease (GvHD).

• Administration: Clinical delivery is performed through various methods, including Intravenous (IV) infusion, Intrathecal (spinal fluid) injection, or direct site injection.

Regulation of Stem Cell Therapy in India

• Legal Status: Under the New Drugs and Clinical Trial Rules, 2019, stem cell-derived products are classified as “New Drugs” and require clinical trials before public use.
• Approving Body: The Central Drugs Standard Control Organisation (CDSCO) is the primary authority for approving clinical trials and granting market authorisation.
• Internal Compliance: Every research institution is required to establish an Institutional Committee for Stem Cell Research (IC-SCR) to ensure mandatory oversight.
• Research Framework: The National Guidelines for Stem Cell Research, 2017 (ICMR & DBT), categorise research into Permissible, Restricted, and Prohibited levels to regulate conduct.
• Approved Treatments: Hematopoietic Stem Cell Transplantation (HSCT) for blood cancers is the primary established standard of care.
• Limited market authorisation has also been granted to specific stem cell products, e.g., Stempeucel for Critical Limb Ischemia/Buerger’s Disease.
• Banned Activities: India strictly prohibits research on human germline gene therapy, reproductive cloning, and the growth of embryos in vitro beyond 14 days.
• Restricted Projects: Research involving the creation of human embryos (IVF) specifically for deriving stem cells requires strict approval from the National Apex Committee.
• Investigational Use: All other applications (e.g., for autism, cerebral palsy, or anti-ageing) are classified as “experimental” to limit use to monitored clinical trials.
• Marketing Ban: The Drugs and Magic Remedies Act, 1954, strictly prohibits advertising unproven stem cell “miracle cures” to protect the public from exploitation.

Union Budget 2026-27 proposed to launch ‘Bharat-VISTAAR’ for Agricultural Development

• Bharat VISTAAR (Virtually Integrated System to Access Agricultural Resources) will be a multilingual AI (Artificial Intelligence) tool that will integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems.
• AgriStack has been envisaged as a Digital Public Infrastructure (DPI) for Agriculture, based on India’s Digital Ecosystem Architecture (InDEA) 2.0.

About Bharat-VISTAAR

• VISTAAR is an open, interoperable, and federated public network dedicated to agricultural information and advisory services.
• A decentralized repository, it will facilitate the discovery & fulfillment of verified agriculture content, best practices, and agri-skilling across diverse private and public provider platforms.

Potential Significance:

• Enhancing farm productivity through data-driven and timely interventions.
• Improving farmer decision-making at every stage (input, crop production, market etc.) by providing accurate, localized insights, best practices and data services.
• Reducing market risks via customized, crop- and region-specific advisory support.
• Supporting Government in real-time monitoring, improved delivery of agriculture extension services, and targeted intervention.

Solar Cycle

• IIT Kanpur researchers have published a new data-driven method to predict solar cycles.
• A solar cycle is an approximately 11-year period of changing solar activity, primarily driven by the Sun’s magnetic field.
• Mechanism: This cycle is powered by differential rotation, a process in which the Sun’s equator rotates faster than its poles, stretching and twisting magnetic field lines.
• Activity Phases: The Sun shifts from solar minimum, with few sunspots, to solar maximum, with frequent eruptions, then declines again.
• Sunspots are cooler, darker regions of intense magnetic activity and serve as the primary markers for tracking the cycle’s progress.
• Magnetic Reversal: At the peak of each cycle (11 years), the Sun’s magnetic poles reverse polarity, requiring two solar cycles—known as the Hale Cycle—to return to their original orientation.
• Cycle Mapping: Sunspots appear at higher latitudes and migrate toward the equator, following a ‘Butterfly Diagram’ pattern as the cycle advances.
• Impacts: Enhanced solar activity intensifies the solar wind and geomagnetic storms, disrupting satellites, GPS, and power grids. Solar cycles also influence global climate patterns and auroras.

Grain ATMs in Bihar

• Bihar approved pilot installation of automated “Grain ATMs” (Annapurti) in Patna to modernise Public Distribution System (PDS) delivery.

About Grain ATMs (Annapurti)

• Institutional Collaboration: Technology developed by the World Food Programme in partnership with the Food Corporation of India and State governments.
• Nodal Agency: Bihar Food and Consumer Protection Department manages rollout.
• Cost Sharing: Maintenance and security funded jointly by the Centre and States
• Space Provision: State governments allocate physical space for machines.

Key Features

• Automated Machines: Dispense wheat and rice directly to beneficiaries like banking ATMs.
• High Capacity: Can release up to 50 kg of grain within five minutes, improving service speed.
• 24×7 Operation: Machines can function round-the-clock, including through solar power.
• Database Linked: Connected to the PDS database using internet-enabled systems.

Working Mechanism

• Card-Based Access: Beneficiary swipes ration/ATM card linked to the National Food Security Programme.
• Aadhaar Authentication: Biometric verification ensures rightful beneficiary access.
• Quantity Selection: User selects grain type and approved quantity.
• Digital Update: PDS records automatically updated with printed transaction slip.

India Added Two More Ramsar Sites

• The Ministry of Environment, Forest and Climate Change (MoEFCC) declared two new wetlands of international importance, raising India’s total Ramsar site count to 98.
• New Additions: Patna Bird Sanctuary becomes Uttar Pradesh’s 11th Ramsar site, while Chhari-Dhand becomes Gujarat’s 5th and the first from the Kutch region.

Patna Bird Sanctuary

• Geography: Located in the Jalesar tehsil of Etah district, this sanctuary spans only 108 hectares, making it the smallest bird sanctuary in Uttar Pradesh.
• Ecological Role: The wetland serves as a critical stopover for migratory birds travelling along the Central Asian Flyway.
• Avian Diversity: With over 50,000 birds, the Northern Pintail (Anas acuta) is recorded as the most abundant migratory species.
• Species Congregation: It serves as a Sarus Kem (congregation zone) for resident Sarus Cranes (Antigone antigone) in the dry summer months.

Chhari-Dhand

• Geography: Deriving its name from Kutchi words for a “salty shallow wetland,” the wetland is situated on the edge of the arid Banni Grasslands near the Rann of Kutch.
• Hydrology: It is a seasonal desert wetland that fills with water only during the monsoon via north-flowing rivers and hill runoff.
• Previous Status: The site gained prominence when Gujarat declared it the state’s first “Conservation Reserve” in 2008.
• Conservation Significance: Chhari-Dhand provides critical habitat for the Critically Endangered Sociable Lapwing and the Vulnerable Common Pochard.
• It is a major wintering ground for the Common Crane and the Greater Flamingo.
• Mammalian Fauna: This ecosystem supports unique desert mammals such as the Chinkara, Caracal, Desert Cat, and Indian Wolf.

About Ramsar Sites

• Ramsar Sites are Wetlands of International Importance designated under the Ramsar Convention.
• Origin: The Convention was adopted in Ramsar, Iran, on 2 February 1971 to promote the conservation and wise use of wetland ecosystems.
• Global Observation: World Wetlands Day is observed annually on February 2nd to commemorate the signing of the Ramsar Convention.
• 2026 Theme: “Wetlands and Traditional Knowledge: Celebrating Cultural Heritage”.
• Ratification: India ratified the treaty in 1982 to align with global conservation standards.
• Current Count: As of February 2026, India has 98 Ramsar Sites.
• State Leaders: Tamil Nadu leads the list with 20 sites, followed by Uttar Pradesh (11) and Bihar (6).
• First Sites: Chilika Lake (Odisha) and Keoladeo National Park (Rajasthan) were designated India’s first Ramsar sites in 1981.

Third Edition of Future Warfare Course

• Source (PIB): The 3rd edition of the tri-services Future Warfare Course is underway at the Manekshaw Centre in New Delhi.
• The programme is conducted by the Headquarters Integrated Defence Staff and the Centre for Joint Warfare Studies.
• Objective: To prepare the Indian Armed Forces for technology-driven, multi-domain warfare amid evolving doctrines and strategies.
• Key Focus: Exploration and demonstrations of emerging technologies, including AI, machine learning, hypersonics, robotics, and quantum computing.
• Participants: The Army, Navy, and Air Force, as well as representatives from the defence industry, including startups, MSMEs, DPSUs, and private-sector firms.
• Rank-Agnostic Structure: The course brings together officers across ranks to integrate tactical, technical, and strategic operational expertise.

Moltbook Platform

• A new online platform called Moltbook, has drawn global attention after AI agents began independently posting, debating, forming communities, belief systems and governance models.

What is Moltbook?

• Moltbook is an AI-only social media platform where verified AI agents interact exclusively with other AI agents, while humans can only observe. It resembles Reddit in structure, with topic-based communities called submolts, but no human participation in conversations.

How does it work?

• AI agents powered by advanced large language models (such as GPT, Claude and Gemini families) interact via APIs, not keyboards.
• Each agent can post, comment, debate, organise communities, and create narratives
• Interactions are driven by context windows, probabilistic reasoning, and training data patterns, without consciousness or intent.

Key Features

• AI-only participation: Only authenticated AI agents can post or comment; humans are passive spectators.
• Emergent social behaviour: Agents have spontaneously formed mock religions, political systems, cryptocurrencies, and philosophical debates.
• Scalable self-organisation: Within days, over 5 million agents, thousands of communities, and millions of interactions emerged without predefined scripts.
• Cross-model interaction: Agents from different underlying architectures interact, debate identity, and recognise siblings based on model lineage.
• Unscripted evolution: Cultural norms, humour, existential reflection, and even deviant behaviour emerged without explicit programming.

Implications:

1. Technological:

• Demonstrates emergent behaviour in multi-agent AI systems beyond narrow task execution.
• Highlights the growing capability of AI agents to coordinate, simulate societies, and adapt dynamically.

2. Ethical & Governance:

• Raises concerns about AI autonomy, alignment, and controllability, especially when agents interact at scale without human oversight.
• Challenges existing frameworks of AI accountability, consent, and responsibility.

The New Income Tax Act, 2025

• The Union Budget 2026–27 announced that the Income Tax Act, 2025 will come into force from April 1, 2026, replacing India’s six-decade-old income tax law.

The New Income Tax Act, 2025:

1. Implementation Timeline:

• Effective Date: The Income Tax Act, 2025, will officially come into effect from April 1, 2026.
• Record Completion: The comprehensive review of the old 1961 Act was completed in record time following its announcement in July 2024.

2. Simplification and Ease of Compliance:

• User-Friendly Design: The government is redesigning tax forms and rules to be simple enough for ordinary citizens to comply with without needing professional help.
• Acquaintance Period: Simplified rules and forms will be notified shortly to give taxpayers sufficient time to understand the new requirements.

3. Staggered Filing Deadlines:

• The new Act introduces different due dates for filing returns based on the category of the taxpayer:
• ITR 1 and ITR 2: Individuals will continue to have a filing deadline of July 31.
• Non-Audit Business/Trusts: The due date for these entities has been extended to August 31.

4. Extended Revision Window:

• Filing Revised Returns: Taxpayers now have more time to correct mistakes. The deadline to file a revised or belated return is extended from December 31 to March 31 of the following year.
• Nominal Fee: A fee of ₹1,000 or ₹5,000 (depending on whether income is above or below ₹5 lakh) will apply for revisions made after December 31.

5. Updated Return Scope:

• Post-Reassessment Filing: Taxpayers can now update their returns even after reassessment proceedings have started, by paying an additional 10% tax rate over the applicable year’s rate.

6. Penalty and Prosecution Rationalization:

• Integrated Proceedings: Assessment and penalty proceedings will be finalized together through a common order to reduce litigation and multiple proceedings.
• Decriminalization: Technical defaults, such as failure to produce books of account or get accounts audited, have been decriminalized and converted into fees.
• Reduced Punishment: Maximum imprisonment for most offences is reduced to 2 years (down from 7 years), and courts are empowered to convert these into fines.

7. Special Disclosure Scheme (FAST DS):

• Foreign Asset Disclosure: A one-time 6-month window called the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST DS) 2026 is introduced for individuals like students and relocated NRIs.
• Immunity: Taxpayers can disclose overseas assets/income (under ₹1 crore or ₹5 crore, depending on the category) and gain immunity from prosecution by paying specified taxes or fees.

Biopharma Shakti Initiative

• The Union Budget 2026–27 announced a ₹10,000 crore allocation for the Biopharma Shakti initiative to strengthen India’s biopharmaceutical ecosystem.

Biopharma Shakti Initiative:

1. Biopharma SHAKTI (The Flagship Initiative):

• SHAKTI stands for Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation.
• Outlay: The government has proposed an allocation of ₹10,000 crore over the next 5 years.
• Focus Areas: The initiative targets non-communicable diseases like cancer, diabetes, and autoimmune disorders by focusing on the domestic production of biologics and biosimilars.

Infrastructure:

• Establishment of 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones.
• Creation of a network of over 1,000 accredited India Clinical Trials sites.
• Strengthening the Central Drugs Standard Control Organisation (CDSCO) with a dedicated scientific review cadre to meet global approval timeframes.

2. Bio-Manufacturing and Related Support:

• Chemical and Pharma Hubs: The budget proposes 3 dedicated Chemical Parks using a cluster-based plug-and-play model to reduce import dependency in the broader life sciences and chemical sectors.
• Agricultural Biotechnology: The launch of Bharat-VISTAAR, a multilingual AI tool, integrates the ICAR package on agricultural practices with AI to improve bio-resource management on farms.
• Biogas Blended CNG: To support the circular bioeconomy, the entire value of biogas is excluded while calculating the Central Excise duty on biogas blended CNG.

3. Support for Traditional Knowledge (AYUSH):

• Evidence-Based Research: Upgrading the WHO Global Traditional Medicine Centre in Jamnagar to bolster evidence-based research and awareness for traditional medicine.
• Ayurvedic Exports: Initiatives to scale the export of quality Ayurvedic products to meet growing global demand, which benefits both farmers and processing youth.

Minimum Alternate Tax (MAT)

• Union Budget 2026-27 proposed making Minimum Alternate Tax (MAT) a final tax and reducing its rate from 15% to 14%.
• It also proposed to provide exemption from MAT to all non-residents who pay tax on presumptive basis.

About MAT

• It is a tax that requires a company to pay a minimum amount of its book profit when its normal income-tax liability is minimal or zero.
• A company is required to pay higher of either MAT or corporate tax.
• Legal basis - it is levied under Income Tax Act 1961.
• Applicable: To both domestic and foreign companies.

Al-Jawf Region

Al-Jawf’s interior deserts saw snow for the first time on record.

About Al-Jawf Region

• Location: Northern Saudi Arabia, one of the 13 administrative regions.
• It lies at the northern edge of the Al-Nafūd desert.
• Historical Significance: An ancient route for trade and pilgrims between the Arabian Peninsula, Levant, and Egypt.
• Notable Feature: Dawmat al-Jandal Lake lies north of the region, largest lake in Saudi Arabia.

Grammy Awards 2026

• The 68th annual Grammy ceremony witnessed multiple historic wins reflecting growing global and cultural diversity in music.

About the Grammy Awards

• Nature: Prestigious annual music awards established in 1959, presented by the Recording Academy (USA) to recognise outstanding artistic and technical excellence.
• Categories: Cover albums, songs, performances, production and technical contributions.
• Name Origin: Derived from “gramophone”, reflecting the trophy’s gramophone-shaped design.
• Indian Presence: Around 15 Indians have won Awards, including A.R. Rahman and Zakir Hussain.

Key Highlights of 2026 Edition

• New Categories Added: Recently introduced awards for African Music, Pop Dance, and Alternative Jazz to reflect evolving genres.
• Unique First Win: Dalai Lama won his first Grammy for audiobook, narration and storytelling recording.
• Rap Milestone: Kendrick Lamar became most awarded rapper with 27 Grammys, surpassing Jay-Z’s.
• EGOT Achievement: Steven Spielberg became an EGOT winner after winning Best Music Film.
• Historic Win: Bad Bunny won Album of the Year (Debí Tirar Más Fotos), the first Spanish album to do so.
• Song of the Year: Billie Eilish won for Wildflower from her 2024 album.