In numbers: India's Budget recap and major scheme expenditure analysis

A look back at major allocations, reforms, and fiscal targets from India's previous budget

Jan 21, 2026, 15:06 IST1 min

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Budget 2025-26 introduced a major rejig of income tax slabs under the new regime. Earners up to Rs12 lakh now receive full rebate, up from Rs7 lakh, with restructured brackets offering broader tax relief.

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Gross tax receipts are projected to reach Rs42.7 lakh crore in 2025-26, an 11 percent increase from revised estimates, maintaining tax-to-GDP ratio at 12 percent as revenue collection strengthens.

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Fiscal deficit is expected to drop to 4.4 percent of GDP in 2025-26. Data reveals a steady downward trend in both fiscal and revenue deficits, reflecting improved fiscal consolidation.

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The government's revenue mix for 2025-26 shows borrowings comprising 24 percent, followed by income tax at 22 percent, GST at 18 percent, and corporation tax at 17 percent. Customs is contributing just 4 percent of the government's revenue.

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Government expenditure for 2025-26 prioritises states' share of taxes at 22 percent, interest payments at 20 percent, and central sector schemes at 16 percent. Defence and subsidies receive 8 percent and 6 percent, respectively.

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Effective capital expenditure is set to reach Rs15.5 lakh crore in 2025-26—representing 4.3 percent of GDP—up from Rs13.2 lakh crore, signalling continued infrastructure investment push.

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Defence lead sectoral spending at Rs4.92 lakh crore, followed by significant investments in rural development and railways to bolster national security alongside critical social and physical infrastructure growth across India.

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India's 2025-26 budget prioritised rural resilience with a Rs86,000 crore MGNREGS outlay, alongside significant funding for Jal Jeevan and PM-KISAN, ensuring robust support for employment, water access, and farmer livelihoods.