Finance Minister Nirmala Sitharaman said that the government has projected a total expenditure of Rs 53.47 lakh crore for the next financial year (FY27), marking a 7.7% rise from the current fiscal ending March 31 (FY26). The revised estimate showed that the size of the Budget for FY26 is Rs 49.64 lakh crore, lower from Rs 50.65 lakh crore estimated in February 2025. The Budget for fiscal 2024-25 was at Rs 46.52 lakh crore.

She stated total expenditure for the next fiscal year is projected at Rs 53.47 lakh crore, much more than tax receipts. The government aims for tax receipts of Rs 44.04 lakh crore, 8 per cent higher than the previous year. Further, she stated the government has made the highest-ever allocation of Rs 12.2 lakh crore, which is 3.1 per cent of GDP and 11.5 per cent higher than the Revised Estimates (RE) for 2025-26.

On the advice of state finance ministers, she said capital expenditure loans for 50 years are increased to Rs 2 lakh crore for Special Assistance to States for Capital Investment (SASCI). With this move, she said the effective capital expenditure grows to Rs 17.1 lakh crore, which is 4.4 per cent of the GDP. Besides, according to her, the government is following the fiscal discipline and has forecasted the fiscal deficit at 4.3 per cent of the GDP or Rs 16.95 lakh crore for FY27.