Union Budget 2026: What Fills Government Coffers And How The Money Is Spent

Along with presenting the Union Budget 2026-27 speech in the Parliament on Sunday, Union Finance Minister Nirmala Sitharaman also tabled the Budget documents which provide a fractional break-up of every Re 1 that comes into the government coffers and how it gets spent.

According to the Union Budget 2026-27 documents, here is a breakdown of the sources from where each rupee comes into government coffers:

Direct and indirect taxes - 64 paise per rupee of revenue. This includes 21 paise income tax, 18 paise corporation tax, 15 paise Goods and Services Tax, 6 paise from excise duty and 4 paise from customs levy.

Borrowings and other liabilities - 24 paise per rupee of revenue.

Non-tax revenue like disinvestment - 10 paise per rupee of revenue.

Non-debt capital receipts - 2 paise per rupee of revenue.

How The Government Spends This Money

Interest payments - 20 paise

States' share of taxes and duties - 22 paise

Defence allocation - 11 paise

Central sector schemes - 17 paise

Centrally-sponsored schemes - 8 paise

Finance Commission and other transfers - 7 paise

Subsidies - 6 paise

Pensions - 2 paise

Other expenditures - 7 paise