New Delhi: Taxes—both direct and indirect—constitute the largest share of government revenue, contributing 66 paise for every rupee in the Union Budget 2025-26, according to official documents.
Borrowings and other liabilities account for 24 paise, while non-tax revenue, including disinvestment, contributes 9 paise. Non-debt capital receipts make up the remaining 1 paise, reported PTI.
Among direct taxes, corporate and individual income taxes contribute 39 paise, with 22 paise from income tax and 17 paise from corporate tax. Indirect taxes, primarily Goods and Services Tax (GST), add 18 paise per rupee, while excise duty and customs levy contribute 5 paise and 4 paise, respectively.
On the expenditure side, 20 paise is allocated for interest payments, while states receive 22 paise as their share of taxes and duties. Defence spending stands at 8 paise per rupee.
Central sector schemes account for 16 paise, while centrally-sponsored schemes receive 8 paise. Similarly, 8 paise is allocated for ‘Finance Commission and other transfers.’ Subsidies and pensions take up 6 paise and 4 paise, respectively, while ‘other expenditures’ also account for 8 paise, the news agency report said.
The Budget 2025-26, presented in Parliament by Finance Minister Nirmala Sitharaman, outlines this detailed allocation of government revenue and spending.
