India’s Budget disclosure: Big allocations, slower spending across several centrally sponsored schemes
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India’s Union Budget has been under spotlight not only for the size of its annual allocations but also for the gap between funds promised and actual spending. In the 2025–26 Budget, the Centre had earmarked ₹67,000 crore for the Jal Jeevan Mission, but the allocation was slashed by 74.6% in the revised estimates to just ₹17,000 crore. A similar trend emerged in the Pradhan Mantri Awas Yojana–Urban, where the original allocation of ₹19,794 crore was pared down to an expected expenditure of ₹7,500 crore, reflecting a reduction of 62%.
This pattern has also been visible across several other centrally sponsored schemes. For instance, in the Budget for 2025–26, the government allocated ₹1,275 crore to the National AYUSH Mission, but actual spending stood at only ₹781 crore, a cut of 38%. Similarly, under the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme, the government had allocated ₹10,000 crore, while expected spending was ₹7,500 crore, a decline of 25%.
In the 2025–26 Budget, the government pegged total expenditure at about ₹50.65 lakh crore, signalling higher spending across key sectors to support growth, infrastructure creation, and welfare commitments. As the year progressed, however, the revised estimates placed total expenditure at around ₹49.6 lakh crore, reflecting lower-than-anticipated receipts and a scaled-back spending profile compared with the initial plan.
January 2026
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Insights from the Revised Estimates
Revised estimates show the government’s actual expected spending for a fiscal year, compared with the original Budget plan.
In the 2025-26 cycle, the actual expenditure for 2024–25 was at ₹46.5 lakh crore, while the 2025–26 Budget projected total spending of about ₹50.65 lakh crore. Although the initial capital outlay was increased, several ministries were unable to fully utilise the allocated funds.
Areas where the Budget has expanded
Not all areas saw cuts. Some sectors either maintained or increased their allocations from Revised Estimates:
Defence and security: The Intelligence Bureau (IB) received a substantially higher allocation, up sharply from last year’s Revised Estimate. Overall defence capital expenditure also rose under the 2026–27 framework, reflecting the government’s focus on modernising the armed forces.
Social sector headlines: Education and health fund envelopes continue to grow over the long term, though some social sector Budgets showed only modest gains when compared with revised spending levels.
Fiscal reality: While overall outlays are larger in the new Budget, total expenditure is up about 7.7% over revised estimates of 2025-26.
Why it matters
This trend is significant as it shows the gap between policy intent and on-ground execution. While large allocations in the initial Budget attract attention, actual spending—and its distribution—ultimately hinges on administrative capacity, project timelines, and shifting priorities over the course of the year.
According to reports, this can reflect prudent fiscal management or signal delays and underperformance in government spending. Reduced spending in areas like urban sanitation and incentive schemes can slow down the pace of on-ground outcomes, even if headline figures suggest growth.