Union Budget 2026: Follow the journey of every rupee - How it comes in and where it goes

India’s budget reveals the complete journey of a single rupee - from taxes and borrowings to defence, subsidies, pensions, and transfers to states. 

The Indian government’s financial map offers a clear picture of how one rupee is earned and where it is directed.  

On the income side, the largest portion comes from borrowings and liabilities (24%), showing reliance on debt. Taxes remain vital, with income tax (21%) and corporation tax (18%) forming strong pillars. GST and other taxes (15%), non-tax revenues (10%), union excise duties (6%), customs (4%), and non-debt capital receipts (2%) complete the revenue mix.  

On the expenditure side, the rupee is spread across multiple priorities. The states’ share of taxes (22%) ensures federal balance. Interest payments (20%) highlight the cost of debt servicing. Central sector schemes (17%) and defence (11%) reflect development and national security. Welfare and support are visible through centrally sponsored schemes (8%), major subsidies (6%), and **finance commission transfers (7%). Smaller but important allocations include civil pensions (2%) and other expenditures (7%).  

This breakdown shows how India balances between raising funds through taxes and borrowings, and spending them on governance, welfare, and national priorities. It highlights the challenges of managing resources while meeting the needs of citizens.