Which one among the following items of expenditure received the highest allocations in the Union Budget, 2025-26?

In the Union Budget 2025-26, interest payments remain the single largest item of expenditure. Historically, interest payments have consistently accounted for the highest share of the total budgeted expenditure, often around 18-20% [2]. For the 2025-26 fiscal year, while the Ministry of Defence received a record allocation of Rs 6.81 lakh crore (representing 13.45% of the total budget) [1], interest payments exceed this amount as they are a mandatory servicing cost of the government's accumulated debt. Other major components like Centrally Sponsored Schemes and Pensions receive significant funding but do not surpass the interest burden. The total expenditure for 2025-26 is estimated at approximately Rs 50.66 lakh crore, with interest payments typically consuming the largest portion of revenue receipts to maintain fiscal obligations [2].

Sources

1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > PRESENT TREND IN DEFICITS > p. 113
2. [1] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098485