India’s Union Budget for 2025-26 sets overall government expenditure at Rs 50.65 lakh crore, up from Rs 47.16 lakh crore in the revised projections for 2024-25. The fiscal deficit is forecast at 4.4 percent of GDP, down from 4.8 percent in the previous year’s revised projections, as the government seeks fiscal consolidation.
According to the Budget 2025 documents, the government’s gross tax collection is expected to be Rs 42.70 lakh crore, while the Centre’s net tax revenues are projected to be Rs 28.37 lakh crore after accounting for the state contribution. Non-tax revenue is predicted to be Rs 5.83 lakh crore, with capital receipts (including borrowings) at Rs 16.45 lakh crore.
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Capital spending has been set at Rs 11.21 lakh crore, indicating the government’s emphasis on infrastructure and asset development. Effective capital expenditure, including grants for capital asset creation, is anticipated to be Rs 15.48 lakh crore. The government has set aside Rs 12.76 lakh crore for interest payments, making it the highest item of expenditure.
Transfers to states, comprising their share of taxes, grants, and loans, are expected at Rs 25.01 lakh crore, up Rs 4.91 lakh crore from 2023-24.
The government’s fiscal policy seeks to strike a balance between growth and fiscal discipline, with revenue receipts forecast at Rs 34.20 lakh crore, up from Rs 30.88 lakh crore in the previous year’s revised forecasts. The revenue deficit is pegged at 1.5 percent of GDP, improving from 1.9 percent in 2024-25.
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How big is India’s Budget 2025? It adds up to a massive Rs 50.65 lakh crore
