Economic Survey 2025-26: Where the Government Gets Its Money and How It Is Spent
Where the Money Comes From, Where It Goes, Inside the Country’s Economy: The Economic Survey 2025–26 explains this by breaking down how one rupee earned by the government is collected and spent, showing how the economy stays active through consumption, investment, trade, and government spending.
Where does the rupee come from? According to the survey, the government earns one rupee from multiple sources: 24% from borrowings, 22% from income tax, 18% from GST and other taxes, 17% from corporation tax, 9% from non-tax revenue, 5% from excise duty, 4% from customs duty, and 1% from non-debt capital receipts. Borrowings remain the single largest source of income.
Where does the rupee go? For every rupee spent, 22% goes to states as their share of taxes, 20% towards interest payments, 16% to central sector schemes, 8% each to defence, centrally sponsored schemes, and other expenses, 8% to Finance Commission transfers, 6% to subsidies, and 4% to pensions. The biggest expense is the share given to states.
ALSO READ: How long will it take to build a ₹10 lakh fund with a ₹1000 SIP? See the calculation
