Union Budget 2026: Where the money comes from and goes | Infographics

Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) presented the Union government’s budget for FY2026.

Also read: Union Budget 2026 LIVE updates

Borrowings and other liabilities form the largest source of funds for this Budget, accounting for 24% of total inflows, unchanged from the previous year. Income tax is the second-largest contributor at 21% (down from 22% last year), followed by GST and other taxes at 15%, compared with 18% in 2025-26. Corporation tax also makes up a significant share at 18%. The remaining budgetary resources come from non-tax revenue, Union excise duties, customs duties, and non-debt capital receipts.

In the Budget, 22% of expenditure (unchanged from last year) is allocated to States’ share of taxes and duties, followed by interest payments at 20%. Central sector schemes account for 17% of total spending. Defence receives 11%, while Finance Commission and other transfers and centrally sponsored schemes get 8% and 7%, respectively. Pensions account for 2% of government expenditure, while the remaining 7% is spent on other items.