India's fiscal health: Revenue collection, state transfers rise in 2025
What's the story
The Ministry of Finance has released the fiscal data for the current financial year (FY) till October 2025. The figures show a steady growth in revenue collection and an increase in fund transfers to states. The consolidated monthly accounts show that the central government has collected ₹18 lakh crore, which is 51.5% of the Budget Estimates (BE) for FY26.
Revenue breakdown
Tax revenue and non-tax revenue contributions
Out of the total collection, ₹12.74 lakh crore came from tax revenue (net to the center), ₹4.89 lakh crore from non-tax revenue, and ₹37,095 crore from non-debt capital receipts. The Ministry of Finance also announced that it has transferred ₹8.34 lakh crore to state governments as their share of taxes. This is an increase of ₹1.11 lakh crore over the same period last year, indicating a stronger pace of devolution to support state-level finances and development spending.
Spending analysis
Central government's expenditure and focus on infrastructure
The total expenditure by the central government till October 2025 was ₹26.25 lakh crore, which is 51.8% of the BE for FY26. Out of this, ₹20.07 lakh crore was spent on revenue expenditure and ₹6.17 lakh crore on capital expenditure. This data shows that the government is continuing its focus on infrastructure creation and public capital formation while managing recurrent expenses effectively.
Fiscal commitments
Interest payments and subsidies in revenue expenditure
Within the total revenue expenditure, interest payments accounted for ₹6.73 lakh crore while major subsidies accounted for ₹2.46 lakh crore. This spending pattern highlights a balance between fiscal commitments like interest and subsidies, and investment through capital outlay. These figures reflect the continued implementation of fiscal policy in line with annual Budget targets, according to the Ministry of Finance release.