Fiscal Intelligence Brief: Revenue Streams and Expenditure Allocations in India's 2026 Union Budget

The Union Budget 2026 presents a comprehensive fiscal blueprint, delineating the government's revenue mobilization strategies and expenditure priorities. Analysis reveals that revenue generation is primarily anchored in direct and indirect taxation, with corporate and personal income taxes constituting the cornerstone of direct tax collections. Indirect taxes, including the Goods and Services Tax (GST) and customs duties, further bolster the exchequer. Non-tax revenues, derived from dividends and profits of public sector enterprises, along with disinvestment proceeds, provide additional fiscal leverage. On the expenditure front, allocations are strategically directed towards key sectors: infrastructure development receives substantial funding to catalyze economic growth, while social sector spending on health, education, and rural development underscores a commitment to inclusive progress. Defense and internal security allocations remain robust, ensuring national sovereignty. Fiscal prudence is evident in the management of the fiscal deficit, with targeted reductions aimed at long-term macroeconomic stability. This budgetary framework reflects a balanced approach, harmonizing growth imperatives with social equity, thereby positioning India on a trajectory of sustainable economic advancement.