New Delhi: The Union Budget 2026-27 has proposed a total expenditure of Rs 53.47 lakh crore, comprising Rs 41.25 lakh crore in revenue expenditure and Rs 12.22 lakh crore in capital expenditure, underscoring the government’s continued focus on fiscal consolidation alongside growth-oriented spending.
Among ministries, the Finance Ministry has received the highest allocation at Rs 19.72 lakh crore, including Rs 17.22 lakh crore for revenue expenditure and Rs 2.50 lakh crore for capital expenditure. The outlay primarily accounts for interest payments, subsidies and transfers to states, even as the fiscal deficit for 2026-27 has been pegged at 4.3 per cent of GDP.
The Defence Ministry follows with an allocation of Rs 7.85 lakh crore, comprising Rs 5.54 lakh crore in revenue expenditure and Rs 2.31 lakh crore in capital outlay, reflecting sustained focus on operational readiness and modernisation.
The Ministry of Road Transport and Highways has been allocated Rs 3.10 lakh crore, with most of the spending directed towards capital expenditure to accelerate highway construction and infrastructure development. The Ministry of Railways has received Rs 2.93 lakh crore, largely aimed at capital outlay to support network expansion, station redevelopment and modernisation.
In the social and internal security sectors, the Ministry of Consumer Affairs, Food and Public Distribution has been allotted Rs 2.39 lakh crore, keeping it among the largest social-sector spenders. The Ministry of Home Affairs has received Rs 2.25 lakh crore, including Rs 2.28 lakh crore in revenue expenditure and Rs 0.27 lakh crore in capital spending. The Ministry of Rural Development has been allocated Rs 1.91 lakh crore to support flagship welfare schemes and rural programmes.
The Ministry of Chemicals and Fertilisers has been allotted Rs 1.77 lakh crore, while the Ministry of Agriculture and Farmers’ Welfare has received Rs 1.40 lakh crore. The Ministry of Education follows closely with an allocation of Rs 1.39 lakh crore.
The Ministry of Communications has been allocated over Rs 1.02 lakh crore in total, including Rs 53,743 crore in revenue expenditure and Rs 48,524 crore in capital expenditure. The Ministry of Jal Shakti has received Rs 9,480 crore, while the Ministry of Housing and Urban Affairs has been allotted Rs 85,522 crore.
In the energy and technology space, the Ministry of Renewable Energy has received Rs 32,914 crore, marginally higher than the Ministry of Power’s allocation of Rs 29,996 crore. The Ministry of Electronics and Information Technology has been allotted Rs 21,632 crore to support digital public infrastructure, electronics manufacturing and technology-led governance, while the Ministry of Commerce and Industry has received Rs 17,843 crore.
Overall, the ministry-wise allocations indicate a clear emphasis on infrastructure, defence, welfare spending and digital capacity-building within the broader fiscal framework of the Union Budget 2026-27.
