Budget 2026 shows where the government will spend the most and the least

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament on February 1, outlining how the central government plans to spend money across different ministries in the coming financial year. The total allocation for all ministries together stands at around ₹50 lakh crore. The budget gives a clear picture of the government’s priorities, with some ministries receiving very high funding while others have comparatively smaller allocations.

A look at the ministry-wise numbers shows that the Finance Ministry continues to dominate government spending, while Parliamentary Affairs receives the lowest allocation. Several social, infrastructure, defence, and welfare-related ministries have also seen significant funding, reflecting the government’s focus on growth, security, and public services.

One notable highlight of this year’s budget is the increase in funding for traditional medicine. The AYUSH Ministry, which looks after Ayurveda, Yoga, Unani, Siddha, and Homoeopathy, has received a 20 per cent hike in its budget. Its allocation has risen from ₹3,671.82 crore in the revised estimates of 2025–26 to ₹4,408.93 crore in 2026–27.

Ministries with the highest allocations

The Finance Ministry has once again topped the list with the highest allocation among all ministries. It has been given more than ₹19.7 lakh crore. This large amount mainly includes interest payments, pensions, and transfers to states, which naturally make it the biggest component of government expenditure.

The Defence Ministry comes next with an allocation of around ₹7.84 lakh crore. Defence spending remains a key priority due to national security needs, modernisation of the armed forces, and ongoing border challenges. A significant portion of this budget is expected to be used for salaries, pensions, and the purchase of modern equipment.

The Ministry of Road Transport and Highways has received about ₹3.09 lakh crore. This shows the government’s continued push for better road connectivity, highway expansion, and faster movement of goods and people across the country. Similarly, Indian Railways has been allocated around ₹2.81 lakh crore, underlining the importance of railway safety, new trains, station redevelopment, and network expansion.

The Home Ministry, which handles internal security, police forces, and disaster management, has received approximately ₹2.55 lakh crore. Consumer Affairs, Food and Public Distribution has also been given a large budget of around ₹2.39 lakh crore, mainly to support food subsidies and public distribution systems.

Rural Development has received about ₹1.97 lakh crore, reflecting continued focus on villages, employment schemes, housing, and rural infrastructure. Chemicals and Fertilisers has been allocated around ₹1.77 lakh crore, largely due to subsidies aimed at keeping fertiliser prices affordable for farmers.

Agriculture and Farmers Welfare has been given over ₹1.40 lakh crore, showing the government’s intent to support farmers through schemes related to income support, crop insurance, irrigation, and agricultural infrastructure. Education has received nearly ₹1.39 lakh crore, while Health and Family Welfare has been allocated around ₹1.06 lakh crore, highlighting the importance of education and healthcare in long-term development.

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Middle and lower range allocations

Several ministries fall in the middle range of allocations. The Communications Ministry has received over ₹1.02 lakh crore, while Jal Shakti, which handles water-related projects, has been given nearly ₹94,800 crore. Housing and Urban Affairs has been allocated about ₹85,522 crore, with a strong focus on urban development and housing schemes.

Science and Technology has received around ₹38,260 crore, while New and Renewable Energy has been allocated nearly ₹32,915 crore, supporting clean energy goals. Labour and Employment has also received a similar amount, reflecting efforts to improve job creation and worker welfare.

Women and Child Development has been given about ₹28,183 crore, while the Micro, Small and Medium Enterprises (MSME) Ministry has received around ₹24,566 crore to support small businesses and entrepreneurship. Atomic Energy and External Affairs have been allocated ₹24,123 crore and ₹22,118 crore respectively.

The Electronics and Information Technology Ministry has received around ₹21,633 crore, supporting digital infrastructure, electronics manufacturing, and cybersecurity. Commerce and Industry has been allocated nearly ₹17,844 crore, focusing on trade, industry support, and exports.

At the lower end of the spectrum, ministries like Tribal Affairs and Social Justice and Empowerment have received around ₹15,400 crore each. The Department of Space has been allocated about ₹13,706 crore, continuing support for space missions and research.

Skill Development and Entrepreneurship has received close to ₹9,886 crore, while Fisheries, Animal Husbandry and Dairying has been given around ₹8,915 crore. Heavy Industries and the Development of the North Eastern Region have received ₹7,940 crore and ₹6,812 crore respectively.

Among the smaller allocations, Information and Broadcasting has received ₹4,551.94 crore. A large part of this will go to Prasar Bharati, along with support for animation, visual effects, gaming, and community radio. The AYUSH Ministry’s allocation of ₹4,408.93 crore stands out due to its sharp increase.

Tourism has been allocated ₹2,438 crore, Civil Aviation ₹2,102 crore, and the combined budget for the President, Parliament, and UPSC is around ₹2,083 crore. Cooperation has received ₹1,744 crore, while Planning and Panchayati Raj have been given just over ₹1,200 crore each.

At the very bottom of the list, the Steel Ministry has received ₹443 crore, and Parliamentary Affairs has the lowest allocation at just ₹68.45 crore.

Overall, Budget 2026–27 reflects a clear focus on finance management, defence, infrastructure, agriculture, and social welfare. At the same time, it also shows how smaller ministries function with limited funds while still playing important roles in governance.