Rupee earned, rupee spent, Budget 2025: Where does every penny come from and go

The Union Budget for 2025-26 is expected to lay out a comprehensive financial blueprint for the government, where Nirmala Sitharaman is set to highligh the sources of revenue and areas of expenditure that will shape the fiscal landscape for the coming financial year.

The Union Finance Minister is set to present her eighth consecutive Budget and the first full one for Modi 3.0.

According to the Budget documents, for every rupee in its coffers, the largest share, 66 paise, will come from direct and indirect taxes. The remaining revenue will be sourced from borrowings, non-tax revenue, and capital receipts.


Among direct taxes, corporate and individual income tax will contribute a total of 39 paise, with income tax accounting for 22 paise and corporate tax for 17 paise. In the indirect tax segment, GST will generate 18 paise, making it the highest contributor.

Additionally, excise duty will bring in 5 paise, and customs levies will add 4 paise to government revenues. Apart from taxes, borrowings and other liabilities will contribute 24 paise, while non-tax revenue, including disinvestment, will account for 9 paise, and non-debt capital receipts will add 1 paise.

On the expenditure side, the government will allocate the largest portion, 22 paise per rupee, to states as their share of taxes and duties, followed closely by 20 paise for interest payments. Central sector schemes will receive 16 paise, while centrally sponsored schemes will get 8 paise. Defence spending will account for 8 paise per rupee, and another 8 paise will go towards Finance Commission transfers.

Additionally, 6 paise will be spent on subsidies, and 4 paise on pensions, ensuring social welfare commitments are met. The government has also earmarked 8 paise for other expenditures, which covers administrative and governance costs.

Also Read: Budget 2025: What gets cheaper, what gets expensive? Check full list

Where did the government source funding for every penny spent in 2024?

Where every rupee came from:

• Direct & Indirect Taxes – 63 paise
• Indirect Taxes – 27 paise
• GST – 18 paise
• Excise Duty – 5 paise
• Customs Levy – 4 paise
• Borrowings & Other Liabilities – 27 paise
• Non-Tax Revenue (e.g., Disinvestment) – 9 paise
• Non-Debt Capital Receipts – 1 paise

Also Read: Budget 2025 key announcements: Will Sitharaman meet India Inc's expectations?

Where Every Rupee Was Spent:

• States' share of taxes & duties – 21 paise
• Interest payments – 19 paise
• Central sector schemes – 16 paise
• Centrally sponsored schemes – 8 paise
• Defence allocation – 8 paise
• Finance commission & other transfers – 9 paise
• Subsidies – 6 paise
• Pensions – 4 paise
• Other Expenditures – 9 paise