On June 03rd, 2025, India marked three significant milestones reflecting its progress across technology, trade, and gender inclusion. In recent developments, the Indian government has proposed a 12% hike in the budget for MGNREGS to reinforce rural employment, disqualified a UP MLA following a hate speech conviction in line with electoral laws, and initiated negotiations with Chile for a Comprehensive Economic Partnership Agreement (CEPA) to boost trade and investment cooperation.

Awareness regarding daily UPSC current affairs is crucial for cracking the UPSC Prelims, excelling in UPSC Mains. It helps perform well in the UPSC personality test, thus becoming an informed and effective UPSC civil servant.

Below are the current affairs and headlines of the day taken from The Hindu, Indian Express, Press Information Bureau & All India Radio as required for UPSC preparation:

MGNREGS: Government Proposes 12% Hike in Budget Allocation for 2025–2030

Source: Financial Express 

Syllabus: GS Paper II (Governance; Welfare Schemes), GS Paper III (Economy)

IN NEWS

• The Ministry of Rural Development has proposed a 12% increase in the budget outlay for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the period 2025–2030, with a proposed allocation of ₹5.23 lakh crore. 

• This move comes amid a decline in participation post-COVID-19 and reflects the scheme's enduring policy significance.

Key Highlights of the Proposal

• 12% Hike: ₹5.23 lakh crore proposed for 2025–30, compared to ₹4.68 lakh crore spent in 2020–25.
• COVID-19 Impact: Scheme saw high demand during the pandemic due to reverse migration.
• Regional Disparity: Suspension of the scheme in West Bengal over the last three years affected national participation figures.
• No Major Structural Change: As MGNREGS is a statutory programme, the Expenditure Finance Committee (EFC) process is largely procedural.
• Continued Relevance: Despite declining post-pandemic demand, MGNREGS remains critical for rural livelihood security and poverty alleviation.

Significance

• Rural Safety Net: Vital employment source during economic distress.
• Poverty Reduction: Direct income support to millions in rural India.
• Gender Equity: High participation of women, ensuring inclusive growth.
• Infrastructure Development: Supports creation of rural assets like roads, ponds, etc.

Know more about the List of Social Security Schemes in India!

UP MLA Disqualified Following Criminal Conviction in Hate Speech Case

Source: The Indian Express

Syllabus: GS Paper II (Polity and Governance)

IN NEWS

• An MLA from Mau Sadar constituency in Uttar Pradesh has been disqualified from the State Assembly following a conviction and two-year sentence in a hate speech case related to the 2022 elections. 

• The disqualification is in accordance with the Representation of the People Act, 1951.

Relevant Constitutional & Statutory Provisions

Remedy for Disqualification

• Appeal Against Conviction: If a higher court stays the conviction, the disqualification becomes temporarily ineffective (as per Lily Thomas v. Union of India, 2013).
• Presidential/Governor’s Decision: In ambiguous cases, final decision lies with the President or Governor, guided by the Election Commission.
• Re-election Possibility: A disqualified person may contest elections after the disqualification period ends, unless permanently barred.

Significance

• Upholds Rule of Law: Reinforces accountability of elected representatives.
• Judicial Oversight: Role of judiciary and EC in ensuring fair political processes.
• Deterrence: Acts as a deterrent against criminalisation of politics.

Know more about the Anti Defection Law in India!

India–Chile CEPA Talks Begin to Deepen Bilateral Trade and Investment

Source: The Indian Express

Syllabus: GS Paper II (International Relations); GS Paper III (Economy – Trade)

IN NEWS

• India and Chile held the first round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi from 26–30 May 2025. 

• The discussions focused on boosting trade, value chains, and investment flows between the two nations.

Key Features of India–Chile CEPA Negotiation

• 17 Negotiation Tracks, including:
  • Trade in Goods & Services
  • Movement of Natural Persons
  • Sanitary & Phytosanitary Measures (SPS)
  • Technical Barriers to Trade (TBT)
  • Investment Cooperation
  • Strategic Minerals & Sustainable Development
  • Women’s Economic Empowerment
  • Intellectual Property Rights (IPR)

Types of Trade Agreements

Significance

• Deeper Economic Ties: Enhances strategic trade partnership with Latin America.
• Supply Chain Resilience: Promotes integration into global value chains.
• Market Diversification: Expands India's export markets beyond traditional partners.
• Sustainable Development: Collaboration on green technologies and critical minerals.
• Empowering MSMEs: Special provisions to support small businesses and women entrepreneurs.

Know more about the Difference between Bilateral and Multilateral Trade