The Union Budget for 2026–27, with a total outlay of ₹53.5 lakh crore, is divided between sectoral and non-sectoral expenditure.
The ministry of finance has received the largest allocation of Rs 19.72 lakh crore, including Rs 17.22 lakh crore for revenue expenditure and Rs 2.50 lakh crore for capital expenditure.
The allocation reflects spending on interest payments, subsidies and transfers to states.
In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a record ₹7.85 lakh crore allocation for defence, the highest ever.
It will be comprising Rs 5.54 lakh crore in revenue expenditure and Rs 2.31 lakh crore in capital outlay.
The ministry of railways received Rs 2.93 lakh crore.
Non-sectoral expenditure comprises mandatory commitments that are not attributed to individual ministries.
This includes interest payments on past borrowings, pensions for defence and civil services personnel, and statutory transfers such as tax devolution and grants to states and Union Territories.
The Government provided ₹1.4 lakh crore to the States for the FY 2026-27 as Finance Commission Grants as recommended by the 16th Finance Commission.