New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament on Sunday. The government has estimated the total gross tax revenue at ₹44.04 lakh crore, marking an approximate 8 percent increase compared to the revised estimates of the financial year 2025-26.
Direct taxes, including corporate tax and personal income tax, are expected to contribute ₹26.97 lakh crore, accounting for about 61.2 percent of the total tax revenue. Indirect taxes are projected to generate ₹17.07 lakh crore.
The Budget estimates the tax-to-GDP ratio at 11.2 percent for 2026-27. This year also marks the first implementation year of the recommendations of the 16th Finance Commission, which has suggested maintaining the states’ share of taxes at 41 percent.
The net tax revenue accruing to the Centre is expected to be ₹28.67 lakh crore. In addition, non-tax revenue is projected at ₹6.66 lakh crore.
Total revenue receipts of the Centre, including both tax and non-tax sources, are estimated at ₹35.33 lakh crore, reflecting a 5.7 percent increase over the previous year.
The total expenditure of the Central government is expected to be ₹53.47 lakh crore, which is about 13.6 percent of GDP and 7.7 percent higher than the ₹49.65 lakh crore spent in the previous fiscal.
Capital expenditure has been allocated ₹12.22 lakh crore, representing 3.1 percent of GDP. This includes special loans of ₹2.0 lakh crore extended to the states.
The effective capital expenditure of the government, which combines its own spending and grants for capital assets, is aimed at strengthening the country’s economic capacity.
Grants for capital asset creation are estimated at ₹4.93 lakh crore, approximately 1.3 percent of GDP.
Overall, the Centre’s effective capital expenditure for 2026-27 is expected to reach ₹17.15 lakh crore, about 4.4 percent of GDP.
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