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India’s Budget 2025-26: Top 10 Central Government Ministries by Allocation

By: Bhaswati Guha Majumder

by Bhaswati Guha Majumder
February 1, 2025
in Economy, Featured, Governance, Union Budget
Reading Time: 4 mins read
The Finance Ministry has unveiled the budget estimates for FY 2025-26, with the Ministry of Finance leading allocations at Rs 19.39 lakh crore. Defence, Consumer Affairs, Home Affairs, and Infrastructure sectors receive substantial funding

The Finance Ministry has unveiled the budget estimates for FY 2025-26, with the Ministry of Finance leading allocations at Rs 19.39 lakh crore. Defence, Consumer Affairs, Home Affairs, and Infrastructure sectors receive substantial funding

New Delhi: The Finance Ministry has released the budget estimates for the financial year 2025-26, outlining the allocation of funds to various ministries. The budget, prepared by the Ministry of Finance, presents a detailed breakdown of both revenue and capital expenditures across different government departments.

In terms of total allocation, the Ministry of Finance leads with an overwhelming budget of Rs 19,39,001.26 crore. This is followed by key ministries such as Defence, Consumer Affairs, Home Affairs, and Road Transport and Highways, which have received significant funds to support their respective programs and infrastructure development.

Here are the top ten ministries in terms of budget allocation:

  1. Ministry of Finance – Rs 19,39,001.26 crore

The Ministry of Finance has received the highest budget allocation, with significant portions directed towards interest payments (Rs 12,76,337.98 crore) and transfers to states (Rs 3,28,042.48 crore). The Department of Revenue has been allocated Rs 1,32,844.36 crore, reflecting the government’s commitment to strengthening the tax administration and financial governance.

  1. Ministry of Defence – Rs 6,81,210.27 crore

The second-highest allocation goes to the Ministry of Defence. This includes Rs 3,11,732.30 crore for Defence Services (Revenue), Rs 1,80,000 crore for capital outlay on Defence Services, and Rs 1,60,795 crore for Defence Pensions. This substantial allocation underscores the government’s focus on national security and military modernization.

  1. Ministry of Consumer Affairs, Food, and Public Distribution – Rs 2,15,767.09 crore

The Ministry responsible for food security and distribution has received Rs 2,11,406.37 crore for the Department of Food and Public Distribution, reflecting the government’s continued commitment to providing subsidized food grains under various welfare schemes.

  1. Ministry of Home Affairs – Rs 2,33,210.68 crore

The Ministry of Home Affairs, which oversees internal security and law enforcement, has been allocated Rs 2,33,210.68 crore. The Police Department has received Rs 1,60,391.06 crore, while Rs 41,000.07 crore has been allocated for Transfers to Jammu and Kashmir, reflecting the government’s focus on maintaining security and development in the region.

  1. Ministry of Road Transport and Highways – Rs 2,87,333.16 crore

With a major focus on infrastructure development, the Ministry of Road Transport and Highways has received Rs 2,87,333.16 crore. A large portion of this, Rs 2,72,241.15 crore, is earmarked for capital expenditure, highlighting the government’s push for highway expansion and maintenance.

  1. Ministry of Railways – Rs 2,55,445.18 crore

The Indian Railways, a crucial part of the country’s transport infrastructure, has been allocated Rs 2,55,445.18 crore. A significant Rs 2,52,000 crore is dedicated to capital expenditure, aiming at the modernization and expansion of railway networks.

  1. Ministry of Rural Development – Rs 1,90,405.53 crore

With a strong emphasis on rural development and welfare schemes, this ministry has received Rs 1,90,405.53 crore. The Department of Rural Development alone accounts for Rs 1,87,754.53 crore, ensuring the continued support of programs such as MGNREGA and rural infrastructure initiatives.

  1. Ministry of Chemicals and Fertilizers – Rs 1,61,965.21 crore

The government has allocated Rs 1,61,965.21 crore to this ministry, primarily to support the Department of Fertilizers (Rs 1,56,502.44 crore), ensuring the availability and affordability of essential fertilizers for farmers.

  1. Ministry of Agriculture and Farmers Welfare – Rs 1,37,756.55 crore

Agriculture remains a priority, with the Ministry of Agriculture and Farmers Welfare receiving Rs 1,37,756.55 crore. The Department of Agriculture and Farmers Welfare alone accounts for Rs 1,27,290.16 crore, supporting schemes such as PM-Kisan, crop insurance, and various agricultural subsidies.

  1. Ministry of Communications – Rs 1,08,105.10 crore

With a growing focus on digital connectivity and telecommunications, the Ministry of Communications has been allocated Rs 1,08,105.10 crore. The Department of Telecommunications has received Rs 81,005.24 crore, underlining the government’s push for 5G expansion and rural broadband connectivity.

The 2025-26 budget showcases the government’s commitment to key sectors such as infrastructure, defence, rural development, and finance. While the Ministry of Finance leads in overall allocation, substantial funding for Defence, Road Transport, Railways, and Rural Development reflects the government’s focus on national security and economic growth. With strategic investments in these ministries, the government aims to drive economic resilience and sustainable development across the country.

Also Read –

Budget 2025: Deep Tech, AI, Manufacturing and Innovation Push Draws Industry Praise

Tags: Budget 2025-26Budget AllocationCentral Government MinistriesDefence BudgetEconomic GrowthFinance MinistryGovernment ExpenditureIndian BudgetInfrastructure Fundingnational securityRailway BudgetRural Development
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