Current Affairs 04 February 2026

16th Finance Commission Grants to Urban Local Governments

The Finance Commission of India in its 16th Finance Commission Report has recommended a record ₹3.5 lakh crore allocation for Urban Local Governments (ULGs) for the next five years. The previous finance commission (15th) granted ₹1.5 lakh crore. This marks a major policy shift toward urbanisation, recognising the growing needs of India’s towns and cities.

Whereas the 16th Finance Commission granted ₹7.9 lakh crore in total to local governments, the share allocated specifically to Urban Local Governments (ULGs) remains comparatively lower.

Under the 15th Finance Commission, allocations to Rural and Urban Local Governments were 64% and 36%, respectively. In contrast, under the 16th Finance Commission, these shares have been revised to 55% for Rural Local Governments and 45% for Urban Local Governments, indicating an increased focus on urban infrastructure.

Further, Vijayawada and Visakhapatnam are the two eligible cities from Andhra Pradesh under the special infrastructure component of Urban Local Body grants.

Tribal Protests in Maharashtra Over Land & Forest Rights

Thousands of tribal farmers in Maharashtra recently organised large-scale long marches from Palghar and Nashik districts demanding proper implementation of land and forest rights laws. The protests highlight poor implementation of the Forest Rights Act, 2006, which aims to recognise traditional forest dwellers’ rights over land and resources.

The agitation centres on land ownership, irrigation facilities, employment, and education.

• Forest land cultivated for generations has not been legally transferred to their names.
• Many individual claims are rejected or only partial land is granted.
• Titles are issued in village names instead of individual ownership, restricting access to loans and welfare schemes.

The Bhils, Katkaris, Mahadev Kolis, Thakurs, Gamits, and Warlis are some of the major tribal communities of Maharashtra. Among them, the Warlis are especially famous for their traditional Warli painting art and primarily reside in the Palghar and Thane districts.

Grammy Awards 2026

Bad Bunny won the Album of the Year 2026 for ‘Debi Tirar Mas Fotos’ album. This became the first Spanish language album to win the top Grammy Award. Dalai Lama won Grammy Award for his Audio Book, Narration & Storytelling Recording. This is his first Grammy, recognising his spirtual teachings and storytelling.

Other Winners

• Song of the Year: Billie Eilish – Wildflower
• Record of the Year: Kendrick Lamar & SZA – Luther
• Best New Artist: Olivia Dean
• Pop Vocal Album: Lady Gaga – Mayhem
• Country Duo/Group: Shaboozey
• Music Film: Music by John Williams (Steven Spielberg’s first Grammy)

Costa Rica – Presidential Election 2026

Costa Rica elected Laura Fernandez as the President in the 2026 elections. She belongs to the right-wing political party and secured a landslide victory. She defeated Alvaro Ramos, who secured 33.4% votes.

Costa Rica

• Capital – San Jose
• Region – Central America
• Currency – Costa Rican Colon

Anahat Singh wins PSA Bronze Squash Title

• Anahat Singh won the PSA Bronze-level Squash on Fire Open title.
• Tournament held in Washington.
• In the final, she defeated top seed & World No. 10 Georgina Kennedy.
• This is her maiden PSA Bronze crown. This is also the biggest title of her career.

Pilloo AI – Voice-Based Billing Agent Launched in Andhra Pradesh

Andhra Pradesh Chief Minister launched Pilloo AI, a next-generation voice-based billing and accounting system. Target users are Small and Medium Businesses (SMEs).

Key Features:

• Create invoices through voice commands
• Record transactions
• Generate reports
• Manage accounts in native languages
• No accounting knowledge required

British-Era Irrigation Locks in Godavari Delta to Boost Tourism

Andhra Pradesh plans to open British-era irrigation locks in the Godavari Delta for tourism development. Initiative led by District Tourism Promotion Council of Dr. B. R. Ambedkar Konaseema district. Locks built in the 1850s (British period). Major irrigation lock sites inlcuding shopella, Mukkamala, Vijjeswaram and Sakhinetipalli Lanka.

Purpose:

• Regulate irrigation water
• Distribute water from Sir Arthur Cotton Barrage
• Prevent illegal diversion

Multipurpose Primary Agricultural Credit Societies (PACS)

The Union government has launched a nationwide cooperative strengthening programme to expand and modernise Primary Agricultural Credit Societies (PACS) and allied dairy & fisheries cooperatives. Aim of this programme is to establish multipurpose PACS/Dairy/Fisheries cooperatives in every panchayat/village within five years.

Key Reforms

• introduced Shared Core Banking Solutions (CBS), AePS, UPI, ERP software
• PACS to function as multipurpose service centres
• New Multipurpose PACS provide Credit, Warehousing facilities, Custom hiring centres, and Processing facilities.
• Model Bye-laws adopted by 32 States/Union Territories. These Bye-laws provide for broad-based membership and ensure adequate representation of women and Scheduled Castes/Scheduled Tribes (SC/ST) in cooperative governance.

• All 352 sanctioned PACS in Jalgaon district have been achieved 100% digitization.

Defence Budget 2026-27

Union government has announced highest-ever defence allocation in the Union Budget 2026–27, strengthening modernisation, indigenous defence manufacturing, and veterans’ welfare.

Highlights:

• Ministry of Defence allocation: ₹7.85 lakh crore.
• Highest among all Ministries.
• 15.19% increase over FY 2025–26.
• Accounts for 14.67% of total Central Government expenditure.
• Border Roads Organisation (BRO): ₹7,394 crore.
• Optical Fibre defence network: ₹975 crore.
• ₹1.39 lakh crore for procurement from domestic defence industries

Union Budget 2026–27 for Capital Goods Sector

• Union Government capital outlay increased by 4.2 times from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26 (BE)
• Union Budget 2026-27 announces public capital expenditure at ₹12.2 lakh crore
• ₹10,000 crore allocated for Container Manufacturing Scheme.

Disclaimer: This article is prepared for competitive exam preparation using publicly available information.