Union Budget 2025

• ! Rs. 50.65 lakh crore will be spent during the financial year 2025 - 2026 by the Indian government

Where does the money come from?

1. Tax revenue
   1. 39% - income tax and corporation tax
   2. 18% - GST and other indirect taxes
   3. 5% - union excise duties
   4. 4% customs duties
2. 9% - non tax revenue - dividends, earnings, fees
3. 1% non debt capital receipts
4. 24% - borrowings and other liabilities ![Obsidian|300][mintgenie_1738407677216.jfif.jpg]

Where does the money go?

1. 22% - states share of taxes and duties
2. 20% - interest payments
3. 16% - central sector schemes
4. 8% - fund development projects at state level - directed by finance commissions
5. 8% - hike in defence spending
6. 8% - centrally sponsored schemes
7. 6% - subsidies
8. 8% - other government and administrative costs
9. 4% - pensions for retired government workers ![Obsidian|300][mintgenie_e_1738407731637.jfif.jpg] Livemint

Rebates in Old taxation vs New taxation

Taxpayers opting for the new tax regime are not allowed to claim deductions or rebates for rent paid for a house and investments in social security instruments such as life insurance, public provident fund and pension.

But those filing their returns under the old tax regime can continue to claim the benefit of deductions for interest paid on home loans, house rent and investments in social security schemes. Mint

New Income Tax regime