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