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The budget holds the fiscal position, but importantly, government borrowing is now largely going into financing capex, as is evident in the effective revenue deficit estimated at 0.3% of GDP. The effective capital spending — Centre’s and capital grant to states — at ₹17.1 lakh crore is more than the fiscal deficit of ₹16.96 lakh crore, indicating an improvement in the quality of expenditure and the deficit. Put simply, borrowing is going into asset creation that will boost the economy’s growth potential.
(% change)
Total capital expenditure (₹ lakh crore)
(% change YoY)
(% change)
(% of GDP)
(Note: Debts as defined in the FRBM Act)
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CONSERVATIVE TAX REVENUE GROWTH
Net tax revenue, net to Centre (₹ lakh crore)Budget 2026 Highlights: Here's the fine print
(% change)- FY23: 21 (16.2%)
- FY24: 23.3 (10.9%)
- FY25: 25.0 (7.4%)
- FY26 (RE): 26.7 (7.0%)
- FY27 (BE): 28.7 (7.2%)
NON-TAX RECEIPTS
Dividends & profits / Non-tax revenue (₹ lakh crore)(% change)
- FY23: 1.0 (–21.8%) | Non-tax: 2.9
- FY24: 1.7 (40.8%) | Non-tax: 4.0
- FY25: 3.1 (33.5%) | Non-tax: 5.4
- FY26 (RE): 3.8 (24.4%) | Non-tax: 6.7
- FY27 (BE): 3.9 (–0.2%) | Non-tax: 6.7
AND ASSET SALES PROVIDE CUSHION
Disinvestment (₹ crore)- FY23: 46,035
- FY24: 83,122
- FY25: 17,200
- FY26 (RE): 33,837
- FY27 (BE): 80,000
AS CAPEX PUSH RESTARTS
Total capital expenditure (₹ lakh crore)
(% change YoY)
- FY23: 7.4 (8.7%)
- FY24: 9.5 (28.3%)
- FY25: 10.5 (10.8%)
- FY26 (RE): 11.0 (4.2%)
- FY27 (BE): 12.2 (11.5%)
REVENUE SPENDING IS KEPT IN CHECK
Revenue expenditure (₹ lakh crore)(% change)
- FY23: 34.5 (7.9%)
- FY24: 34.9 (1.2%)
- FY25: 36.3 (3.1%)
- FY26 (RE): 38.7 (7.4%)
- FY27 (BE): 41.3 (6.6%)
SPENDING RISES AT SLIGHTLY FASTER PACE…
Budget size (₹ lakh crore)- FY23: 41.9 (10.5%)
- FY24: 44.4 (6.0%)
- FY25: 46.5 (4.7%)
- FY26 (RE): 49.7 (6.7%)
- FY27 (BE): 53.5 (7.7%)
THOUGH LOWER SUBSIDIES PROVISION IS A RISK
Subsidy bill (₹ lakh crore)(% of GDP)
- FY23: 5.8 (2.1%)
- FY24: 4.3 (1.4%)
- FY25: 4.2 (1.3%)
- FY26 (RE): 4.7 (1.3%)
- FY27 (BE): 4.5 (1.2%)
FISCAL DEFICIT TARGETS ALMOST UNCHANGED
(% of GDP)| Year | Fiscal deficit | Primary deficit | Revenue deficit |
| FY23 | 6.5 | 3.0 | 4.0 |
| FY24 | 5.5 | 2.0 | 2.5 |
| FY25 | 4.8 | 1.4 | 1.7 |
| FY26 (RE) | 4.4 | 0.8 | 1.5 |
| FY27 (BE) | 4.3 | 0.7 | 1.5 |
DEBT BURDEN EASES TOWARDS TARGET
Central govt debt to GDP ratio (% of GDP)(Note: Debts as defined in the FRBM Act)
