How Union Budget 2026-27 Distributes Rs 53.47 Lakh Crore Across Key Ministries

Union Budget 2026-27 proposes total spending of Rs 53.47 lakh crore, with a strong focus on growth, inclusion and long-term capacity building. The finance ministry received the largest share, followed by defence and infrastructure ministries.

Union Budget 2026-27 outlines record spending plan

The Union Budget for 2026-27 proposes a total government expenditure of Rs 53.47 lakh crore, showing a strong focus on growth, inclusion and long-term development. Out of this, Rs 41.25 lakh crore is marked for revenue expenditure, while Rs 12.22 lakh crore is set aside for capital expenditure.

Finance Minister Nirmala Sitharaman said the Budget follows the government’s three-fold kartavya framework, which focuses on economic growth, social inclusion and building long-term national capacity. She described the Budget as being driven by Yuva Shakti, or youth power, and said it reflects the government’s sankalp to support the poor, underprivileged and disadvantaged.

The Budget also aims to keep India stable and resilient at a time when the global economic environment remains uncertain.

Fiscal discipline maintained amid higher spending

Despite the large spending plan, the government has kept a close watch on fiscal discipline. The fiscal deficit for 2026-27 has been pegged at 4.3 per cent of GDP.

A large part of government spending will continue to go towards interest payments, subsidies and transfers to states, which remain key responsibilities of the Centre.

Finance ministry gets the biggest share

The Ministry of Finance has received the largest allocation of Rs 19.72 lakh crore. This includes Rs 17.22 lakh crore for revenue expenditure and Rs 2.50 lakh crore for capital expenditure.

This allocation covers major obligations such as interest payments on government debt, subsidies and financial support to state governments.

Defence allocation supports modernisation and preparedness

The Ministry of Defence has been allocated Rs 7.85 lakh crore, underlining the government’s continued focus on national security.

Out of this, Rs 5.54 lakh crore is for revenue expenditure, including salaries and pensions, while Rs 2.31 lakh crore is for capital spending. The capital outlay will support the purchase of aircraft, naval platforms, unmanned systems and defence equipment, along with indigenisation under the Aatmanirbhar Bharat programme.

Education and health continue to receive strong backing

The Ministry of Education has been allocated Rs 1.39 lakh crore, largely for revenue expenditure. The funds will support schools, higher education, research, girls’ hostels and STEM education initiatives.

The Ministry of Health and Family Welfare received Rs 1.07 lakh crore, aimed at strengthening healthcare delivery systems, public health infrastructure and medical institutions.

Rural development and water projects supported

The Ministry of Rural Development has been allotted Rs 1.97 lakh crore. This will support major schemes related to rural housing and livelihood programmes.

The Ministry of Jal Shakti received Rs 94,800 crore, which will be used for drinking water supply, sanitation and irrigation projects.

Agriculture and food security remain key priorities

The Ministry of Agriculture and Farmers Welfare has been allocated Rs 1.40 lakh crore. The funding supports farmer income growth, crop diversification, allied activities, rural livelihoods and agri-technology initiatives such as Bharat-VISTAAR.

The Ministry of Consumer Affairs, Food and Public Distribution received Rs 2.39 lakh crore, making it one of the largest social-sector spenders. Most of this amount will go towards food subsidies, procurement, storage and distribution under the public distribution system.

Home affairs focuses on internal security

The Ministry of Home Affairs received Rs 2.55 lakh crore, including Rs 2.28 lakh crore for revenue expenditure and Rs 27,000 crore for capital spending.

The funds will be used for central armed police forces, internal security, border management, disaster response and modernising policing infrastructure across the country.

Infrastructure push led by roads and railways

The Ministry of Road Transport and Highways has been allocated Rs 3.10 lakh crore, with most of the spending going towards capital expenditure. This reflects the government’s continued push for highways, better connectivity and logistics efficiency.

The Ministry of Railways received Rs 2.81 lakh crore, mainly for capital outlay. The funds will support network expansion, station redevelopment and modernisation.

Urban development, energy and digital growth

The Ministry of Housing and Urban Affairs has been allotted Rs 85,522 crore, supporting urban transport, housing, sanitation and city infrastructure.

In the energy sector, the Ministry of Power received Rs 29,996 crore, while the Ministry of New and Renewable Energy was allocated Rs 32,914 crore, supporting clean energy and energy security.

The Ministry of Electronics and Information Technology received Rs 21,632 crore, aimed at strengthening digital public infrastructure, electronics manufacturing and technology-driven governance.

Support for industry, exports and vulnerable groups

The Ministry of Commerce and Industry was allocated Rs 17,843 crore, focusing on export promotion, manufacturing and industrial growth.

Among social ministries, the Ministry of Women and Child Development received Rs 28,183 crore, supporting nutrition, maternal care and women’s empowerment. The Ministry of Tribal Affairs was allotted Rs 15,421 crore, while the Ministry of Social Justice and Empowerment received Rs 15,357 crore.

Youth-focused ministries also saw support, with Rs 4,479 crore allocated to Youth Affairs and Sports and Rs 9,885 crore to Skill Development and Entrepreneurship.