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How 2026-27 spending is paid for, ₹ lakh crore
Total spending ₹53.47 lakh crore · BE 2026-27
Union Budget 2026-27
- Presented
- Sun 1 Feb 2026In Parliament, with the Annual Financial Statement (Article 112)
- Next Budget
- Mon 1 Feb 2027Union Budget day (expected)
- Figures from
- Budget at a Glance 2026-27BE = budget estimate, RE = revised estimate
The gap
The Centre plans to spend ₹53.47 lakh crore in 2026-27. Taxes, other income and non-debt capital receipts cover ₹36.52 lakh crore. It borrows the rest, ₹16.96 lakh crore: that borrowing is the fiscal deficit.
How 2026-27 spending is paid for, ₹ lakh crore
Total spending ₹53.47 lakh crore · BE 2026-27
Deficits and debt, % of GDP
% of GDP as printed in the Budget documents. They use the GDP the Budget assumed, on the 2011-12 base: ₹393.00 lakh crore for 2026-27 (10% above the advance estimate for 2025-26).
Receipts
Expenditure
2025-26: budgeted, revised, spent
Budget estimate (Feb 2025) → revised estimate (Feb 2026) → provisional actual (CGA, 1 Jun 2026). The % is the change from the budget estimate to the provisional actual, worked out from the printed figures.
- Capital expenditureBE11.21→RE10.96→Actual10.69−4.6%
- Tax revenue (net to Centre)BE28.37→RE26.75→Actual26.23−7.5%
- Non-tax revenueBE5.83→RE6.68→Actual6.79+16.5%
- Total expenditureBE50.65→RE49.65→Actual49.05−3.2%
- Fiscal deficitBE15.69→RE15.58→Actual15.19−3.2%4.4% of GDP in the CGA's provisional accounts, as budgeted.
Why some numbers differ between documents (3)
- Finance Commission grants, 2026-27: Budget at a Glance shows ₹1,29,397 crore: grants to local bodies (₹1,01,181 crore) and the Union's share of the state disaster funds (SDRF ₹22,574 crore, SDMF ₹5,642 crore). The Budget Speech's "₹1.4 lakh crore" also counts the national disaster funds (NDRF and NDMF, ₹14,370 crore), which the Budget books under other transfers. Together they come to ₹1,43,767 crore. The grants fall from ₹1,52,953 crore in 2025-26 (RE) because the 16th Finance Commission recommended no revenue-deficit or health grants.
- Centre's debt, 2024-25: 56.2% of GDP in Budget at a Glance (debt as defined in the FRBM Act, actual figures). The Economic Survey's chart shows 55.7% for the revised estimate, compiled by the Department of Economic Affairs; most of the gap comes from dividing by a different GDP figure. The Budget also prints 55.3% for debt as per the Statement of Liabilities. This page uses 56.2%.
- Debt target year: 50 ± 1% of GDP by 31 March 2031, the last year of the 16th Finance Commission's period (FY 2030-31). The Key Features booklet's "by 2030" is shorthand for the same target.
Where the money comes from
Where the tax money comes from
Gross tax revenue, 2026-27 budget: ₹44.04 lakh crore. The states get ₹15.26 lakh crore as their share; the Centre keeps ₹28.67 lakh crore.
- Income tax33.3% · ₹14.66 lakh cr
- Corporation tax28.0% · ₹12.31 lakh cr
- GST (Centre's part)23.1% · ₹10.19 lakh cr
- Union excise duties8.8% · ₹3.89 lakh cr
- Customs6.2% · ₹2.71 lakh cr
- Other taxes and cesses0.4% · ₹0.18 lakh cr
- Taxes of Union Territories0.2% · ₹0.10 lakh cr
Direct taxes are paid by the person or company the tax is on: income tax and corporation tax. Indirect taxes are collected through the prices of goods and services and passed on to the buyer: GST, Union excise duties, customs and other cesses. The Budget's FRBM statement for 2026-27 prints direct taxes at ₹26.97 lakh crore and indirect taxes at ₹17.07 lakh crore, which is exactly customs + excise + GST + other taxes + taxes of Union Territories in the table below. Figures: Budget at a Glance 2026-27, p. 6, checked line by line against the Receipt Budget 2026-27. The Centre's GST falls in 2026-27 because the compensation cess, ₹1.51 lakh crore in 2024-25, is nil. Net tax to the Centre = gross − States' share − National Calamity Contingent Duty (NCCD) passed to the disaster fund.
Where the rupee comes from and goes to
The Budget's classic picture, Union Budget 2026-27 estimates: of every rupee the Centre has, how many paise come from each source and go to each use.
Comes from
- Borrowings and other liabilities24p
- Income tax21p
- Corporation tax18p
- GST and other taxes15p
- Non-tax revenue10p
- Union excise duties6p
- Customs4p
- Non-debt capital receipts2p
Goes to
- States' share of taxes22p
- Interest payments20p
- Central sector schemes17p
- Defence11p
- Centrally sponsored schemes8p
- Finance Commission and other transfers7p
- Other expenditure7p
- Major subsidies6p
- Civil pensions2p
Paise out of every rupee, Budget Estimates 2026-27 (Budget at a Glance, pp. 2–3). Income tax includes the Securities Transaction Tax; central sector schemes exclude capital outlay on defence and major subsidies.
Economic Survey 2025-26
- Tabled
- Thu 29 Jan 2026In Parliament, three days before the Budget
- Real GDP growth projected for 2026-276.8–7.2%Ch. 1, para 1.46, p. 31
- Real GDP growth, 2025-26First advance estimates; GVA 7.3%7.4%Ch. 1, para 1.8, p. 9
- Potential growthUp from 6.5% three years earlierabout 7%Preface, p. xiv; Ch. 1, Box I.4
- Average CPI inflation, April–December 20254.6% in 2024-25; the lowest average in the CPI series then in use1.7%Ch. 5, para 5.8, p. 207
- Inflation outlook for 2026-27No forecast of its own: it quotes the IMF (4.0% for 2026-27) and the RBI (3.9% and 4% for April–June and July–September 2026) and calls inflation unlikely to be a concernHigher than 2025-26Ch. 5, paras 5.36–5.37, pp. 222–223
- Centre's fiscal deficit, 2024-259.2% in 2020-21; 4.4% budgeted for 2025-264.8% of GDPCh. 2, para 2.4, p. 39
- Centre's revenue receiptsAverage for 2021-22 to 2024-25, up from about 8.5% in 2015-16 to 2019-20about 9.1% of GDPCh. 2, para 2.6, p. 40
- Buoyancy of personal income taxesAverage for 2022-23 to 2024-25: these taxes grew 1.8 times as fast as nominal GDP1.8Ch. 2, para 2.7, p. 40
- Income tax returns filed2024-25, up from 6.9 crore in 2021-229.2 croreCh. 2, para 2.8, p. 41
- Centre's effective capital expenditure2024-25; pre-pandemic average 2.7%4.0% of GDPCh. 2, p. 37
- Centre's debt2024-25 revised estimate; target 50 ± 1% by 2030-3155.7% of GDPCh. 2, para 2.44, Chart II.21, p. 69
- Current account deficit, April–September 2025$15 billion, down from 1.3% a year earlier0.8% of GDPCh. 4, para 4.61, p. 172
- Foreign exchange reserves16 January 2026: about 11 months of goods imports and about 94% of external debt$701.4 bnCh. 4, para 4.86, pp. 188–189
- People employed (age 15+)July–September 2025 (PLFS), 8.7 lakh more than the quarter before56.2 croreCh. 12, para 12.8, p. 469
- Extreme povertyWorld Bank $3.00-a-day line, 2022-23; NITI Aayog's multidimensional poverty 11.28% in 2022-23, from 55.3% in 2005-065.3%Ch. 13, para 13.8, p. 515
- Agriculture and allied growth, 2025-26Long-term average 4.5%; foodgrain output 3,577.3 lakh tonnes in 2024-253.1%Ch. 1, para 1.17, p. 14; Ch. 6, para 6.8
- Services share of GDPApril–September 2025; services GVA grew 9.3%53.6%Ch. 7, para 7.11, p. 264
- MSMEs' share of GDP35.4% of manufacturing and 48.58% of exports; 7.47 crore enterprises employing 32.82 crore people (Udyam, 9 Jan 2026)31.1%Ch. 8, para 8.60, p. 325