Union Budget 2026: Top 5 Budget Allocations by Ministry...

Synopsis: Over five years, India’s total Union Budget expenditure rose from ₹34.83 lakh crore (2021-22) to ₹50.65 lakh crore (2025-26), registering a CAGR of 9.81%, driven by sustained defence, infrastructure, and welfare-focused spending.

The Union Budget 2026-27 will be presented on 1 February 2026 (Sunday), with the Economic Survey of India presented on 29 January 2026. The budget will be presented by Nirmala Sitharaman, marking her record ninth consecutive Union Budget. This budget is expected to build on earlier policy priorities such as economic stability, infrastructure-led growth, and fiscal discipline. With India targeting long-term growth and global competitiveness, the 2026-27 budget is likely to focus on strengthening core sectors of the economy.

Based on trends from recent budgets and official policy direction, the total expenditure for 2026–27 is expected to rise further. A strong push towards capital expenditure is anticipated, especially in infrastructure, defence, and transport. The government is expected to continue balancing welfare spending with investment in productive sectors, while keeping inflation and fiscal deficit under control.

Among key ministries, Defence is expected to receive the highest allocation, reflecting continued emphasis on modernisation and indigenisation. The Ministry of Road Transport and Highways is likely to see increased funding to support highway expansion and logistics development, while Railways may receive enhanced allocations for safety upgrades, electrification, and modern train services. Overall, Budget 2026–27 is expected to strongly support infrastructure development, national security, and sustainable economic growth. Here are the top 5 Budget Allocations over the last five years

Budget Allocation in 2025-26:

The Union Budget for India for the financial year 2025-26 was presented on 1 February 2025 by Nirmala Sitharaman, the Finance Minister of India. The total expenditure in this budget was ₹50,65,345 crore, showing the government’s focus on national security, infrastructure, food security, and public services. Among all ministries, the Ministry of Defence received the highest allocation of ₹6,81,210 crore, which accounts for about 13.45% of the total expenditure.

Other major allocations include the Ministry of Road Transport and Highways with ₹2,87,333 crore (about 5.67%), the Ministry of Railways with ₹2,55,445 crore (around 5.04%), the Ministry of Consumer Affairs, Food and Public Distribution with ₹2,33,211 crore (about 4.60%), and Ministry of Home Affairs with ₹2,15,767 crore (nearly 4.26%).

Budget Allocation in 2024-25:

The Union Budget 2024-25 of India was presented on 1 February 2024 by Nirmala Sitharaman, the Finance Minister of India. The total expenditure for this budget was ₹48,20,512 crore. Among all ministries, the Ministry of Defence received the highest allocation of ₹6,21,941 crore. The Defence allocation accounted for about 12.90% of the total expenditure.

Ministry of Road Transport and Highways received ₹2,78,000 crore (around 5.77%), while Ministry of Railways was allocated ₹2,55,393 crore (about 5.30%). The Ministry of Consumer Affairs, Food and Public Distribution Ministry got ₹2,23,323 crore (approximately 4.63%), and the Ministry of Home Affairs received ₹2,19,643 crore (about 4.56%).

Budget Allocation in 2023-24:

The Union Budget 2023-24 of India was presented on 1 February 2023 by Nirmala Sitharaman, the Finance Minister of India. The total government expenditure for this financial year was ₹45,03,097 crore. Among all ministries, the Ministry of Defence received the highest allocation of ₹5,93,538 crore, highlighting the government’s priority towards modernising the armed forces and enhancing defence preparedness.

The Defence budget accounted for around 13.18% of the total expenditure. Ministry of Road Transport and Highways received ₹2,70,435 crore (about 6%), while Ministry of Railways was allocated ₹2,41,268 crore (approximately 5.36%). The Ministry of Consumer Affairs, Food and Public Distribution Ministry got ₹2,05,765 crore (around 4.57%), and the Ministry of Home Affairs received ₹1,96,035 crore (about 4.35%).

Budget Allocation in 2022-23:

The Union Budget 2022-23 of India was presented on 1 February 2022 by Nirmala Sitharaman, the Finance Minister of India. The total government expenditure for this financial year was ₹39,44,908.67 crore. Among all ministries, the Ministry of Defence received the highest allocation of ₹5,25,166 crore. The Defence allocation accounted for about 13.31% of the total expenditure.

The Ministry of Consumer Affairs, Food and Public Distribution Ministry received ₹2,17,684 crore (around 5.52%), supporting food security and welfare schemes. Ministry of Road Transport and Highways was allocated ₹1,99,108 crore (about 5.05%), while Ministry of Home Affairs received ₹1,85,777 crore (around 4.71%). The Ministry of Railways was given ₹1,40,367 crore (approximately 3.56%). These allocations reflect a balanced approach towards security, infrastructure, and public welfare.

Budget Allocation in 2021-22:

The Union Budget 2021-22 of India was presented on 1 February 2021 by Nirmala Sitharaman, the Finance Minister of India. The total government expenditure for this financial year was ₹34,83,236 crore. Among all ministries, the Ministry of Defence received the highest allocation of ₹4,78,196 crore. The Defence allocation accounted for around 13.72% of the total expenditure.

The Ministry of Consumer Affairs, Food and Public Distribution Ministry received ₹2,56,948 crore (about 7.38%), ensuring food security and welfare support. The Ministry of Home Affairs was allocated ₹1,66,547 crore (around 4.78%). Ministry of Rural Development received ₹1,33,690 crore (approximately 3.84%), while Ministry of Agriculture and Farmers’ Welfare got ₹1,31,531 crore (about 3.78%).

Budgetary Growth Trends and CAGR Analysis Across Key Ministries:

Over the four-year period from 2021-22 to 2025-26, Defence expenditure shows a CAGR of 9.25%, reflecting sustained emphasis on modernization and national security. Road Transport and Highways records the fastest growth, with a strong 24.89% CAGR, highlighting aggressive infrastructure expansion. Railway spending has grown at a healthy 23.43% CAGR, indicating continued focus on capacity enhancement, safety, and network modernization to support economic growth.

In the social and administrative sectors, Home Affairs expenditure grew at a CAGR of nearly 6.69%, aligned with internal security and governance needs. Rural Development registered a moderate 9.24% CAGR, reflecting steady support for rural livelihoods and welfare programs.

In contrast, Consumer Affairs, Food and Public Distribution shows a marginal decline, resulting in a negative CAGR of 2.39%, suggesting rationalization of subsidies and improved efficiency in food and public distribution systems.

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