Union Budget
The Union Budget, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for a fiscal year. It keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. The union budget is typically presented on the first day of February each year and has to be passed by Lok Sabha before it can come into effect on 1st April.
The Union Budget consists of a revenue budget and an expenditure budget. The revenue budget details the money received by the government from tax and non-tax sources to enable it to undertake government expenditures. The expenditure budget details the expenditure expected to be incurred in the fiscal year for developmental and non-developmental purposes.
The Union Budget, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for a fiscal year. It keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. The union budget is typically presented on the first day of February each year and has to be passed by Lok Sabha before it can come into effect on 1st April.
The Union Budget consists of a revenue budget and an expenditure budget. The revenue budget details the money received by the government from tax and non-tax sources to enable it to undertake government expenditures. The expenditure budget details the expenditure expected to be incurred in the fiscal year for developmental and non-developmental purposes.
SUBJECT Variables
RECEIPTS
This is the money received by the government from tax and non-tax sources to enable it to undertake government expenditures.
Receipts (excluding borrowings)
- The receipts (excl borrowings) in 2025-26 are budgeted at ₹34.96 lakh crore, 11.1% higher than the actual receipts estimated in 2024-25.
- The receipts (excl borrowings) in 2024-25 are estimated to be lower than budgeted by ₹60,240 crore (1.9% of the budget)
Total receipts (including borrowings)
- The total receipts (incl borrowings) in 2025-26 are budgeted at ₹50.65 lakh crore, 7.4% higher than the actual receipts estimated in 2024-25.
- The total receipts (incl borrowings) in 2024-25 are estimated to be lower than budgeted by ₹104,025 crore (2.2% of the budget)
Revenue Receipts are those sources of revenue that are recurring in nature. They do not create any liability nor cause any reduction in the assets of the government. These include tax and non-tax revenue streams comprising proceeds from taxes levied, fees and charges levied for providing various services, and interest and dividend received on investments.
The central government's net revenue receipts (excluding the share of states) for 2025-26 are budgeted at ₹34.2 lakh crore, 10.8% higher than the actual revenue receipts estimated in 2024-25. Revenue receipts comprise 67.5% of the total receipts budgeted (incl borrowings) in 2025-26.
Tax Revenue (Net to Centre)
- The net tax revenue to Centre is budgeted at ₹28.37 lakh crore in 2025-26, 11% higher than the actual collections estimated in 2024-25.
- Net tax revenue is expected to contribute 81.1% of the government's receipts (excl borrowings) budgeted in 2025-26, in comparison to 81.3% actual tax receipts estimated in 2024-25.
- The actual net tax revenue in 2024-25 is expected to fall short of its budget by ₹26,539 crore (1% of the budgeted amount).
Non-Tax Revenue
- Revenue from non-tax sources (interests, dividends and profits) in 2025-26 is budgeted at ₹5.83 lakh crore, 9.8% higher than the actual non-tax revenue estimated in 2024-25.
- The actual non-tax revenue in 2024-25 is expected to be lower than the budget by ₹14,701 crore (2.7% of the budgeted amount).
- Non-Tax revenue is expected to contribute 18.9% of the government's receipts (excl borrowings) budgeted in 2025-26, in comparison to 18.7% estimated in 2024-25.
Capital receipts are those that create liabilities and are non-recurring in nature. These include proceeds from sale of government assets, loans taken from the public and financial institutions, and recoveries of loans and advances.
The central government's total capital receipts for 2025-26 are budgeted at ₹16.45 lakh crore, 1% higher than the actual capital receipts estimated in 2024-25. Capital receipts comprise 32.5% of the total receipts budgeted in 2025-26.
Borrowings
- Borrowings to cover the revenue shortfall are budgeted at ₹15.69 lakh crore in 2025-26, as much as the actual borrowings estimated in 2024-25.
- The actual borrowings in 2024-25 are estimated to be lower than the budget by ₹43,785 crore (2.7% of the budgeted amount)
Disinvestment
- Revenue from disinvestment (sale of government's stake in public companies) is budgeted at ₹47,000 crore in 2025-26, 42% higher than the actual disinvestment receipts estimated in 2024-25.
- The actual revenue from disinvestments in 2024-25 is estimated to fall short of its budget by ₹17,000 crore.
- Revenue from disinvestment is estimated to contribute only 1.3% of the government's receipts (excl borrowings) in 2025-26, in comparison to 1% based on actual disinvestment receipts estimated in 2024-25.
- Disinvestment targets have been met only twice since 2013
Loan Recoveries
- Recoveries of loans and advances are budgeted at ₹29,000 crore in 2025-26. The actual receipts from recoveries of loans and advances in 2024-25 are expected to lower than the budget by ₹2,000 crore (7% of the budgeted amount).
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