Union Budget 2026: The country’s Union Budget will be presented in Parliament on Sunday 1 February 2026. Now less than 24 hours are left for the budget to be presented. On the other hand, the general discussion is often on roads, railways, defense or welfare schemes. At the same time, from the old budget data, we are going to know for which sector the maximum allocation is made. Let us know in which sector the government spends the most.

Government’s biggest expense

According to the revised estimates of Budget 2024-25 and Budget at a Glance 2025-26, interest payments constitute the largest share of total government expenditure. Interest payments were about 24% of total expenditure in 2024-25. For 2025-26, this figure is expected to increase slightly to around 25%. In simple words, every rupee the government spends, almost a quarter of it goes to repay the previous debt. This money does not create new property, jobs or infrastructure.

Largest allocation as per ministry

Among all the ministries, the Defense Ministry gets the highest allocation. In the Budget 2025-26, Rs 6.81 lakh crore has been given to the Defense Ministry. This is about 10% more than last year. This expenditure includes salaries, defense pension, modernisation, purchase of weapons and operational preparation.

share of states

A large part of central expenditure goes directly to the states. The states’ share in central taxes and duties is about 22% of the total expenditure. This amount is mandated by constitutional provisions and the recommendation of the Finance Commission to support state level governance and development.

Infrastructure and transportation

Infrastructure remains a big priority area. A substantial budget is given to the Ministry of Road Transport and Highways for roads and highways. These allocations are focused on asset creation, logistics efficiency and long-term economic growth.

If we talk about rural development sector, Rs 2.66 lakh crore was given to this sector in the last budget. Its objective was to generate employment, housing, cleanliness and basic infrastructure in the village. Along with this, subsidy on food, fertilizer and other essential items is about 6% of the total government expenditure. Whereas the pension of government employees is about 4% of the budget. Old budget data clearly shows that interest payments dominate government expenditure. This is more than defense and infrastructure. This shows why fiscal discipline, controlled borrowing and economic growth are necessary.

Also read: How much money will be spent in which scheme, how is it decided while making the budget; What is the complete calculation?

New Rules: December 2025 is about to knock—and with it many such changes are coming that will directly affect your pocket, your taxes and your everyday facilities. The beginning of the month is like a diary opening with new guidelines of the government and the market, in which each rule changes the color of your day a little. Here’s a neat summary of all those important changes:

1-Last chance to choose UPS (Unified Pension System)

The last date for choosing UPS for central government employees has been fixed as 30th November. After this, this option will be closed from December 1st. Earlier this deadline was 30 September, which was extended till the end of November.

2-LPG cylinder price

LPG prices are adjusted every month. After the reduction in November, the new prices in December will be applicable from December 1. This change will either provide relief or may put a slight burden on the pocket.

3-Life certificate for pensioners

The last date for submitting life certificate for pensioners is 30th November. Life certificate cannot be submitted after this date, which may hamper the receipt of pension.

4-Important work related to tax

Tax and compliance month-

The last date for filing Form 3CEAA (Constituent Entity Report) is 30 November. This is also the last day for those submitting reports under Section 92E. The deadline for filing ITR for the concerned taxpayers is also 30th November. Keep your tax papers warm before the December cold sets in.

5-PNG and CNG prices

Like every month, new prices of PNG-CNG and jet fuel will be applicable from December 1. Based on the amendments of oil companies, changes may be seen here also.

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