Where the Rupee Goes
Budget at a Glance 2026-27 · indiabudget.gov.inExpenditure side of the Union Budget — transfers, debt service, subsidies, capex
Of every rupee spent by the Union Government, 59 paise goes to just three line items: states' share of taxes (22 paise), interest payments (20 paise), and central sector schemes (17 paise). The government has limited room for discretion — most of the budget is pre-committed by constitutional obligations, debt service, and entitlement schemes.
Composition of Expenditure · % of total rupee
States' share of taxes
22% · Constitutional devolution under Finance Commission formula. Untouchable by Union.
Interest payments
20% · Debt servicing. Now the single largest 'charged' expenditure.
Central sector schemes
17% · Fully funded by Centre. PM-KISAN, Ayushman Bharat, etc.
Defence
11% · MoD + Defence pensions + capital outlay. ≈ 1.6% of GDP.
Centrally sponsored schemes
8% · Shared Centre-state funding. MGNREGS, Jal Jeevan, PMAY.
Finance Commission & other transfers
8% · Revenue deficit grants, disaster response, local-body grants.
Major subsidies
6% · Food (₹2.28L cr), Fertiliser (₹1.71L cr), LPG.
Civil pensions
2% · Pensions of retired civilian government employees.
Other expenditures
7% · Administrative costs, grants-in-aid, all other.
Source: Budget at a Glance 2026-27, p. 1 · 2026-02-01
Head
Amount (bar)
Value
%
₹11.76L Cr
22%
₹10.69L Cr
20%
₹9.09L Cr
17%
₹5.88L Cr
11%
₹4.28L Cr
8%
₹4.28L Cr
8%
₹3.21L Cr
6%
₹1.07L Cr
2%
₹3.74L Cr
7%
Source: Budget at a Glance 2026-27, p. 1 · 2026-02-01
What Your State Gets
Annex-4, Union Receipts Budget 2026-27Horizontal devolution under the Sixteenth Finance Commission formula · 28 states
The Sixteenth Finance Commission fixed the vertical devolution share at 41% of the central divisible pool. The horizontal formula — how that 41% is split among 28 states — weighs population (15%), area (15%), forest cover (10%), income distance (45%), and demographic performance (12.5%). The result is a complex redistribution: larger, poorer states get more; richer states cross-subsidise.
Selected State
Uttar Pradesh [UP]
Share: 17.619% · ₹2.69L Cr · ₹11.2K per head
Corp Tax
₹78.9K Cr
Income Tax
₹95.7K Cr
CGST
₹73.5K Cr
Customs
₹14.3K Cr
| State | Share % | Total Devolution | Per Capita | Corp Tax | Income Tax | CGST | Population (Cr) |
|---|---|---|---|---|---|---|---|
| Uttar Pradesh | 17.619% | ₹2.69L Cr | ₹11.2K | ₹78.9K Cr | ₹95.7K Cr | ₹73.5K Cr | 24.1 |
| Bihar | 9.948% | ₹1.52L Cr | ₹11.6K | ₹44.6K Cr | ₹54.0K Cr | ₹41.5K Cr | 13.1 |
| Madhya Pradesh | 7.347% | ₹1.12L Cr | ₹12.9K | ₹32.9K Cr | ₹39.9K Cr | ₹30.7K Cr | 8.7 |
| West Bengal | 7.215% | ₹1.10L Cr | ₹11.0K | ₹32.3K Cr | ₹39.2K Cr | ₹30.1K Cr | 10.0 |
| Maharashtra | 6.441% | ₹98.3K Cr | ₹8.0K | ₹28.9K Cr | ₹35.0K Cr | ₹26.9K Cr | 12.3 |
| Rajasthan | 5.926% | ₹90.4K Cr | ₹11.2K | ₹26.6K Cr | ₹32.2K Cr | ₹24.7K Cr | 8.1 |
| Odisha | 4.420% | ₹67.5K Cr | ₹15.7K | ₹19.8K Cr | ₹24.0K Cr | ₹18.5K Cr | 4.3 |
| Andhra Pradesh | 4.217% | ₹64.4K Cr | ₹12.4K | ₹18.9K Cr | ₹22.9K Cr | ₹17.6K Cr | 5.2 |
| Karnataka | 4.131% | ₹63.0K Cr | ₹9.4K | ₹18.5K Cr | ₹22.4K Cr | ₹17.2K Cr | 6.7 |
| Tamil Nadu | 4.097% | ₹62.5K Cr | ₹8.2K | ₹18.4K Cr | ₹22.3K Cr | ₹17.1K Cr | 7.6 |
| Gujarat | 3.755% | ₹57.3K Cr | ₹8.2K | ₹16.8K Cr | ₹20.4K Cr | ₹15.7K Cr | 7.0 |
| Jharkhand | 3.357% | ₹51.2K Cr | ₹13.5K | ₹15.0K Cr | ₹18.2K Cr | ₹14.0K Cr | 3.8 |
| Chhattisgarh | 3.304% | ₹50.4K Cr | ₹16.8K | ₹14.8K Cr | ₹17.9K Cr | ₹13.8K Cr | 3.0 |
| Assam | 3.258% | ₹49.7K Cr | ₹13.8K | ₹14.6K Cr | ₹17.7K Cr | ₹13.6K Cr | 3.6 |
| Kerala | 2.382% | ₹36.4K Cr | ₹10.4K | ₹10.7K Cr | ₹12.9K Cr | ₹9.9K Cr | 3.5 |
| Telangana | 2.174% | ₹33.2K Cr | ₹9.5K | ₹9.7K Cr | ₹11.8K Cr | ₹9.1K Cr | 3.5 |
| Punjab | 1.996% | ₹30.5K Cr | ₹10.2K | ₹8.9K Cr | ₹10.8K Cr | ₹8.3K Cr | 3.0 |
| Haryana | 1.361% | ₹20.8K Cr | ₹8.3K | ₹6.1K Cr | ₹7.4K Cr | ₹5.7K Cr | 2.5 |
| Arunachal Pradesh | 1.354% | ₹20.7K Cr | ₹147.6K | ₹6.1K Cr | ₹7.4K Cr | ₹5.7K Cr | 0.1 |
| Uttarakhand | 1.141% | ₹17.4K Cr | ₹15.8K | ₹5.1K Cr | ₹6.2K Cr | ₹4.8K Cr | 1.1 |
| Himachal Pradesh | 0.914% | ₹13.9K Cr | ₹19.1K | ₹4.1K Cr | ₹5.0K Cr | ₹3.8K Cr | 0.7 |
| Tripura | 0.641% | ₹9.8K Cr | ₹25.1K | ₹2.9K Cr | ₹3.5K Cr | ₹2.7K Cr | 0.4 |
| Meghalaya | 0.631% | ₹9.6K Cr | ₹30.1K | ₹2.8K Cr | ₹3.4K Cr | ₹2.6K Cr | 0.3 |
| Manipur | 0.626% | ₹9.6K Cr | ₹32.9K | ₹2.8K Cr | ₹3.4K Cr | ₹2.6K Cr | 0.3 |
| Mizoram | 0.564% | ₹8.6K Cr | ₹71.7K | ₹2.5K Cr | ₹3.1K Cr | ₹2.4K Cr | 0.1 |
| Nagaland | 0.481% | ₹7.3K Cr | ₹33.4K | ₹2.2K Cr | ₹2.6K Cr | ₹2.0K Cr | 0.2 |
| Goa | 0.365% | ₹5.6K Cr | ₹34.8K | ₹1.6K Cr | ₹2.0K Cr | ₹1.5K Cr | 0.2 |
| Sikkim | 0.335% | ₹5.1K Cr | ₹73.0K | ₹1.5K Cr | ₹1.8K Cr | ₹1.4K Cr | 0.1 |