Budget Breakdown: The Journey of Every Rupee in Government Coffer

The Union Budget 2025-26 reveals that 66% of government revenue is sourced from direct and indirect taxes. Borrowings contribute 24%, while non-tax revenues account for 9%. Major expenditures include interest payments and state tax shares, with significant allocations for defense and central schemes.

In the Union Budget 2025-26, it has been highlighted that the largest portion of government revenue, 66 paise per rupee, is anticipated to come from both direct and indirect taxes.

The breakdown indicates that borrowings and other liabilities will contribute 24 paise, and non-tax revenue, such as disinvestments, will add 9 paise to the coffers.

On the spending side, significant allocations include 20 paise for interest payments, 22 paise for the states' share of taxes, and 8 paise each for defense and centrally-sponsored schemes.