Budget 2026: Understanding Where Every Rupee Comes From and Goes

New Delhi | 01 February,2026 The Union Budget 2026-27 offers a clear picture of the government’s revenue sources and expenditure priorities. According to the budget data, the rupee primarily comes from “Borrowings and Liabilities” at 24%, followed by “Income Tax” at 21% and “Corporation Tax” at 18%. Other contributions include “GST and other taxes” (15%), “Non-Tax Revenues” (10%), “Union Excise Duties” (6%), “Customs” (4%), and “Non-Debt Capital Receipts” (2%). This breakdown highlights the balance between direct and indirect taxes and the role of borrowing in financing government programs. On the expenditure side, the largest share goes to “Interest Payment” at 20%, followed closely by “States Share of Taxes” at 22%, ensuring the smooth functioning of state governments. The “Central Sector Scheme” receives 17% of the budget, showing a focus on implementing key programs directly by the central government. Defence gets 11%, while “Major Subsidies” account for 6%, and “Centrally Sponsored Schemes” receive 8%. Smaller allocations include “Finance Commission & other transfers” (7%), “Other Expenditures” (7%), and “Civil Pension” (2%). This allocation reflects the government’s priorities in balancing developmental spending, welfare programs, and financial obligations. The high allocation for interest payments shows the cost of past borrowings, while the focus on central and state schemes ensures both direct and indirect benefits to citizens. Experts say that such a detailed visualization of revenue and spending is crucial for transparency, helping citizens understand how the government raises funds and channels them across sectors. It also signals a commitment to careful fiscal management, maintaining the balance between development, social welfare, and fiscal discipline. Budget 2026: Understanding Where Every Rupee Comes From and Goes The Union Budget 2026-27 gives a clear view of how the government earns and spends money. The rupee mainly comes from “Borrowings and Liabilities” (24%), followed by “Income Tax” (21%) and “Corporation Tax” (18%). Other sources include “GST and other taxes” (15%), “Non-Tax Revenues” (10%), “Union Excise Duties” (6%), “Customs” (4%), and “Non-Debt Capital Receipts” (2%). This shows the mix of taxes and borrowing that funds the country’s plans. On the spending side, the largest portion goes to “Interest Payment” at 20%, while states get 22% through “States Share of Taxes” to support their budgets. “Central Sector Scheme” receives 17% for key government programs, and “Defence” is allocated 11% to strengthen national security. Other allocations include “Major Subsidies” (6%), “Centrally Sponsored Scheme” (8%), “Finance Commission & other transfers” (7%), “Other Expenditures” (7%), and “Civil Pension” (2%). This distribution highlights the government’s focus on balancing development, welfare, and financial obligations. Interest payments reflect past borrowing costs, while central and state schemes aim to reach citizens directly with programs and services. Defence and subsidies show a mix of security and social support priorities. Experts say this clear breakdown improves transparency, helping people understand where money comes from and where it goes. It also shows the government’s effort to manage finances carefully while maintaining support for growth, welfare, and public services.