Daily Current Affairs (02 – May – 26)

Daily Current Affairs (02 – May – 26)

1. Revenue Deficit States and Challenge of Fiscal Stability  –

• The Ministry of Finance’s Monthly Economic Review (April 2026) has highlighted that States with revenue deficits and high debt burdens may face fiscal stress, limited flexibility in responding to shocks, and risk violating the ‘golden rule’ of fiscal financing.

What are the Key Highlights of India’s Fiscal Outlook? 

• Central Resilience: The Union government maintains a cautious fiscal path supported by conservative tax buoyancy assumptions (0.8) and the newly created Economic Stabilisation Fund, which provides a buffer against external shocks without derailing fiscal deficit targets.
• State-Level Revenue Deficits:Out of 18 large states, 9 are in revenue deficit, including Himachal Pradesh (-2.4%), Punjab (-2.2%), Kerala (-2.1%), Andhra Pradesh (-1.1%), Rajasthan (-1.1%), Haryana (-0.9%), Karnataka (-0.7%), Maharashtra (-0.7%), and Chhattisgarh (-0.3%).
• Interest Payment Burdens: High debt servicing limits “degrees of freedom” for stressed states; Punjab faces the highest stress, spending 22.8% of its revenue receipts on interest payments.
• Fiscal Deficit Breach vs. Deliberate Investment:While 13 states budget a fiscal deficit at or above 3% of GSDP, some cases like Odisha (3.5% fiscal deficit but 3% revenue surplus) represent deliberate capital outlay (6.5% of GSDP) rather than fiscal stress.
• Revenue Surplus Leaders: 8 states projected revenue surpluses, notably Odisha (3%), Jharkhand (2.5%), Uttar Pradesh (1.6%), Goa (1.3%), Gujarat (0.8%), Uttarakhand (0.6%), Telangana (0.3%), and Bihar (0.1%).
• 16th Finance Commission (FC) Impact: FY 2026-27 is the first year of the 16th Finance Commission period, introducing risks related to changes in devolution shares and the absence of Revenue Deficit Grants.

2. International Workers’ Day 2026 (May Day) –

• Every year, the 1st of May is observed globally as International Workers’ Day, commonly known as May Day or Labour Day. It is a day dedicated to honoring the historic struggles, sacrifices, and subsequent gains made by the labor movement and workers worldwide.  
• May Day: Traces its origins to the Haymarket Affair at Haymarket Square in Chicago, where a peaceful workers’ rally demanding an eight-hour workday turned violent after a bomb was thrown, amid the harsh conditions of the Industrial Revolution, when workers were often forced to labor 10–16 hours in unsafe environments.
• In 1889, the Second International declared 1st May as International Workers’ Day to honor the Haymarket Martyrs, symbolizing the global struggle for fair working hours based on the principle of 8 hours for work, 8 hours for rest, and 8 hours for personal life.
• The International Labour Organization theme for May Day 2026 is “Ensuring a Healthy Psychosocial Working Environment” highlights rising workplace stress, burnout, and mental health issues, urging governments and employers to prioritize psychosocial risk management alongside physical well-being.
• First Celebration in India:May Day was first formally observed in India on 1st  May 1923, in Madras (Chennai).

3. Reserve Bank of India Says 98.47% of ₹2,000 Notes Returned to Banking System –

• The Reserve Bank of India have announced that 98.47% of ₹2,000 Indian currency notes have been returned to the central banking system. ₹2,000 denominations notes were withdraw by the RBI three years ago. It marks the significant milestone in the India’s currency management process and it reflects the smooth transition from the valid notes.

Background of Withdrawal of ₹2,000 Notes in 2023

• The RBI have announced the withdrawal of ₹2,000 banknotes from circulation on 19th May, 2023. This decision comes from the central bank of India for its currency management strategy.
• At that time the total circulation of thee valid notes is approximately around ₹3.56 lakh crore.
• Unlike the demonetization this move did not invalidate the notes but it is aims to gradually reduce their circulation.

4. Om Birla Reconstitutes Parliamentary Committees for 2026–27: Full Details –

List Of Committees and Their Chairpersons

1. Committee of Estimates

• The committee of Estimates comprise the 30 members from the Lok Sabha and it will be chaired by the Sanjay Jaiswal. The main functions of this committee to examine how the government funds are allocated and spent.

2. Public Accounts Committee

• The Public Accounts Committee (PAC) is one of the most influential financial committees in the India’s parliamentary system. For upcoming cycle it will be headed by the K. C. Venugopal.

3. Committee on Public Undertakings

• This committee will chaired by the Baijayant Panda and it consists of 15 Lok Sabha members and 7 Rajya Sabha members. This committee reviews the functioning and the performance of public sector undertakings (PSUs) of government and also ensures that these enterprises will operate efficiently and work in line with national objectives.

4. Committee on Welfare of SCs and ST

• The Committee on the Welfare of Scheduled Castes and Scheduled Tribes will be chaired by the Faggan Singh Kulaste. This committee includes the 20 members from the Lok Sabha and 10 from the Rajya Sabha. This committee main focus on to the safeguarding the rights and welfare of SC and ST communities.

Understanding Parliamentary Committees

• A Parliamentary committee is a committee of the Members of Parliament (MPs) who are elected or appointed from amongst the members of the house or nominated by the Speaker or Chairman. This concept of Parliamentary committees was originated in the British Parliament. These committees have to operate under the direction of the Speaker of Lok Sabha or Chairman of Rajya Sabha. This committees have to present their findings and recommendations to the respective houses.

Constitutional Backing For The Committees

• The Parliamentary committees are functions under the Article of 105 and 118 of the Indian Constitution.
• Article 105: Powers, privileges, etc., of the houses of Parliament and of the members and committees thereof.
• Article 118:Each House of Parliament may make rules for regulations, subject to the provisions of this constitution, its procedure and the conduct of its business.
• This committees are classified as per their working nature.
• Standing committees.Ad hoc committees.Standing committees

5. Received NDMA Alert? India Tests New Cell Broadcast Emergency Warning System –

What Is the Cell Broadcast Alert System?

• The Cell Broadcast Alert System is the modern technology in which it sends the emergency messages directly to the all mobile phones in a particular area at the same time. As compare to the regular SMS it does not depend on the individual phone numbers. This system also works efficiently despite the networks are crowded.
• In the simple terms it means that this alert messages can reach the people faster and without any delay, even during the high-pressure situations like disasters. This alert system will be the reliable tool for emergency communication.

MCQ Quiz

Q1. Easter Island, that was recently seen in news, is located in which ocean ?

1. a) Pacific Ocean
2. b) Atlantic Ocean
3. c) Indian Ocean
4. d) Arctic Ocean

Q2. Kotgarh Wildlife Sanctuary is located in which state ?

1. a) Odisha
2. b) Maharashtra
3. c) Gujarat
4. d) Karnataka

Q3. Naval Anti-Ship Missile–Short Range, India’s first indigenous helicopter-launched anti-ship missile, has been developed by which organization ?

1. a) Hindustan Aeronautics Limited
2. b) Indian Space Research Organization
3. c) Defence Research and Development Organisation
4. d) Bharat Dynamics Limited

Q4.Consider the following statements regarding the role and significance of the Secretary-General of the United Nations:

1. The Secretary-General is described as the Chief Administrative Officer under the UN Charter.
2. The Secretary-General has the authority to directly impose sanctions on member states.
3. The Secretary-General can bring matters threatening international peace and security to the Security Council.
4. The Secretary-General often acts as a global spokesperson on issues like climate change and inequality.

Which of the statements given above are correct ?

1. a) 1 and 2 only
2. b) 1,3 and 4 only
3. c) 2 ,3 and 4 only
4. d) 1, 2, 3 and 4

Explanation-

• Statement 1 – Correct
  The UN Charter defines the Secretary-General as the “Chief Administrative Officer”.
• Statement 2 – Incorrect
  The Secretary-General cannot impose sanctions. This power lies with the United Nations Security Council.
• Statement 3 – Correct
  Under Article 99 of the UN Charter, the Secretary-General can bring threats to international peace and security to the Security Council.
• Statement 4 – Correct
  The Secretary-General plays a broader diplomatic and moral role:
• Advocates on climate change, conflicts, inequality
• Acts as a global diplomat and mediator

Q5. Consider the following statements:

1. The military cooperation plan between India and Italy promotes joint military exercises and training.
2. Italy, being a NATO partner of India, provides security guarantees to India.
3. This cooperation also includes defence production and technological partnership.

Which of the above statements is/are correct ?

1. a) 1 and 2 only
2. b) 1 and 3 only
3. c) 2 and 3 only
4. d) 1, 2, and 3

Explanation-

• Recently, an exchange of the India–Italy Military Cooperation Plan (MCP) 2026–27 took place between Rajnath Singh and Guido Crosetto, which provides a structured and institutional framework to defence relations between the two countries.
• This initiative comes at a time when instability in Europe’s security architecture has increased due to the Russia–Ukraine War, and NATO countries are strengthening their strategic presence in the Indo-Pacific region, thereby increasing the importance of multi-dimensional defence partnerships for India.
• Under this military cooperation plan, joint military exercises, tri-service (land, sea, air) training, exchange of military personnel, and defence technology cooperation will be promoted.
• Along with this, possibilities of cooperation are also being developed in emerging technologies such as cyber security, artificial intelligence-based military systems, and advanced defence equipment. This aligns with India’s policy of “strategic autonomy,” under which India adopts a multi-partner model without depending on any single military bloc, while also diversifying its sources of defence supply.