New Delhi: In her ninth straight Union Budget presentation on Sunday, Finance Minister Nirmala Sitharaman announced a downward revision in India’s total government expenditure for the current fiscal (FY26) to ₹49.6 trillion, underscoring the government’s calibrated approach to fiscal management amid evolving macroeconomic conditions.
The adjustment — disclosed during the Union Budget 2026-27 address — reflects a reassessment of spending commitments against actual revenue and outlays in the current year.
The revised figure for total expenditure covers both revenue and capital outlays by the Centre, capturing core government spending on social welfare, subsidies, infrastructure, defence, and interest payments.
While the upward momentum in capital expenditure has been sustained to support growth drivers such as roads, railways and urban development, the overall spending reset points to tighter control on non-essential outlays amid fiscal consolidation pressures.
The revision comes against the backdrop of slower than expected tax and non-tax collections in parts of FY26, even as gross domestic product (GDP) growth has held steady.
By bringing down the projected total outlays from earlier estimates — which were above ₹50 trillion — the government appears keen to manage the fiscal deficit target around the earlier goal of about 4.4% of GDP for FY26.