Union Government Finances (April–February 2025–26)

The Government of India has released data on its receipts and expenditure position up to February 2026, indicating steady fiscal progress relative to Revised Estimates (RE) for FY 2025–26.

Total Receipts₹27,91,943 crore (82.0% of RE 2025–26)
Composition of Receipts:
Tax Revenue (Net to Centre)₹21,45,223 crore
Non-Tax Revenue₹5,81,173 crore
Non-Debt Capital Receipts₹65,547 crore
Devolution to States:
Devolution to States₹12,66,369 crore transferred to States
Increase in Devolution₹85,837 crore higher than previous year
Fiscal Implication (Devolution)Reflects stronger fiscal federalism and enhanced resource sharing with States
Composition of Expenditure:
Total Expenditure₹40,44,592 crore (81.5% of RE 2025–26)
Revenue Expenditure₹31,15,270 crore
Interest Payments₹10,65,305 crore (major component of revenue expenditure)
Major Subsidies₹3,89,610 crore
Capital Expenditure₹9,29,322 crore
Significance of CapexIndicates government investment in infrastructure and asset creation

Key Insights

  • Strong Revenue Mobilization: Over 82% of annual receipt target achieved by February indicates stable tax and non-tax collections.
  • High Interest Burden: Interest payments form a significant share of revenue expenditure, highlighting fiscal pressure.
  • Focus on Capital Spending: Substantial capital expenditure reflects continued push for infrastructure-led growth.
  • Enhanced Fiscal Federalism: Higher tax devolution supports State finances and cooperative federalism.

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