By Admin 
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?