Finance Minister Nirmala Sitaraman on Saturday (February 1, 2025) presented the Union government’s second budget after the NDA secured third consecutive win in 2024.

Union Budget 2025 LIVE updates

Borrowings and other liabilities form the largest chunk of where money flows in from for this Budget, at 24%, last year it was 27%. At the second spot is income tax at 22% (previous year 19%), followed by inflow from GST and other taxes at 18%, same as 2024-25. Corporation tax also makes up a significant chunk at 17%. Non-tax revenue, union excise duties, customs and non-debt capital receipts is where the government gets the rest of its budget money from.

In the budget, the government allocates 22% (last year 21%) to the State’s portion of taxes and duties, followed by interest payments at 20%. Next on the list is central sector schemes, which snag 16% of the pie. Finance Commission and other transfers, the defence sector and centrally-sponsored schemes get about 8% each of the government’s money. Other miscellaneous expenditures take up 8%, while subsidies get 6%. Pensions round out the spend, claiming 4% of the government’s money.