 "Budget 2025 math: Where each rupee in India's coffer comes from and where it goes")
For every rupee in the government coffer, the biggest pie of 66 paise will come from direct and indirect taxes, according to the Union Budget 2025-26 documents.
Around 24 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said.
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Direct taxes, including corporate and individual income tax will contribute around 39 paise, while income tax will yield 22 paise, while corporate tax will account for 17 paise, it said.
Among indirect taxes, goods and services tax (GST) will contribute the maximum 18 paise in every rupee of revenue.
Besides, the government is looking to earn 5 paise out of every rupee from excise duty and 4 paise from customs levy.
The collection from “borrowings and other liabilities” will be 24 paise per rupee, as per the Union Budget 2025-26 presented in Parliament by Finance Minister Nirmala Sitharaman on Saturday.
The Budget documents provide a fractional break-up for Re 1 that comes in and gets spent.
On the expenditure side, the outlay for interest payments and states’ share of taxes and duties, respectively, stood at 20 paise and 22 paise for every rupee.
Allocation for defence stands at 8 paise per rupee.
Expenditure on central sector schemes will be 16 paise out of every rupee, while the allocation for centrally-sponsored schemes is 8 paise.
Impact Shorts
More ShortsThe expenditure on ‘Finance Commission and other transfers’ is pegged at 8 paise. Subsidies and pension will account for 6 paise and 4 paise, respectively.
The government will spend 8 paise out of every rupee on ‘other expenditures’.
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