Union Budget 2026–27: Sector-wise Allocations

The Union Budget for 2026–27, with a total outlay of ₹53.5 lakh crore, is divided between sectoral and non-sectoral expenditure, as shown in the accompanying table. Sectoral spending, which accounts for about 63 per cent of the budget, covers allocations routed through ministries and departments. Defence remains the largest item, followed by roads and national highways, railways, home affairs, food and public distribution, and rural development, reflecting continued emphasis on security, infrastructure and welfare.

Non-sectoral expenditure comprises mandatory commitments that are not attributed to individual ministries. This includes interest payments on past borrowings, pensions for defence and civil services personnel, and statutory transfers such as tax devolution and grants to states and Union Territories. These obligations absorb a substantial share of the budget, leaving limited flexibility for new policy initiatives despite the size of the overall outlay.