Expenditure on Major Items in Budget 2025-26: A Detailed Analysis

Introduction

The Union Budget 2025-26 outlines significant allocations across key expenditure heads, reflecting the government’s priorities in social welfare, infrastructure, defense, and economic development. This section provides an in-depth analysis of the budgeted expenditure for major items, comparing it with previous years’ figures and highlighting critical trends.

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Key Expenditure Categories and Allocations

The total expenditure for 2025-26 is ₹50.65 lakh crore, with allocations spread across various sectors. Below is a detailed breakdown:

Category	2023-24 Actuals (₹ crore)	2024-25 BE (₹ crore)	2024-25 RE (₹ crore)	2025-26 BE (₹ crore)
Pension	2,38,328	2,43,296	2,75,103	2,76,618
Defence	4,44,699	4,54,773	4,56,722	4,91,732
Fertiliser Subsidy	1,88,292	1,64,000	1,71,299	1,67,887
Food Subsidy	2,11,814	2,05,250	1,97,420	2,03,420
Petroleum Subsidy	12,240	11,925	14,700	12,100
Agriculture & Allied Activities	1,45,995	1,51,851	1,40,859	1,71,437
Commerce & Industry	49,809	47,559	56,502	65,553
Development of North East	1,628	5,900	4,006	5,915
Education	1,23,365	1,25,638	1,14,054	1,28,650
Energy	52,405	68,769	63,403	81,174
External Affairs	28,915	22,155	25,277	20,517
Finance	23,403	86,339	63,512	62,924
Health	81,594	89,287	88,032	98,311
Home Affairs	1,96,872	2,19,643	2,20,371	2,33,211
Interest Payments	10,63,872	11,62,940	11,37,940	12,76,338
IT & Telecom	82,277	1,16,342	1,17,869	95,298
Rural Development	2,41,193	2,65,808	1,90,675	2,66,817
Scientific Departments	24,657	32,736	29,831	55,679
Social Welfare	42,065	56,501	46,482	60,052
Tax Administration	1,91,327	2,03,530	2,07,968	1,86,632
Transport	5,26,765	5,44,128	5,41,384	5,48,649
Urban Development	68,565	82,577	63,670	96,777
Others	4,03,367	4,73,555	4,50,008	4,82,653

Budgetary Trends and Implications

• Shift Towards Capital Expenditure: Higher investments in infrastructure and modernization projects.
• Focus on Self-Reliance: Increased support for domestic industries, including defense and technology.
• Fiscal Prudence: Balancing subsidies and welfare schemes with revenue generation.

Conclusion

The budget for 2025-26 maintains a fine balance between growth and fiscal stability. While interest payments and subsidies continue to be significant, the focus remains on infrastructure, defense, and social welfare. The allocations reflect a strategic approach toward India’s long-term economic growth and resilience.

Stay tuned for more insights and sectoral breakdowns!

Refernece: https://www.indiabudget.gov.in/doc/Budget_at_Glance/budget_at_a_glance.pdf (Page 13)

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