PRS Legislative Research (PRS India) released its comprehensive analysis of the Union Budget 2026-27 shortly after its presentation on February 1, 2026. The analysis, considered the gold standard for budget scrutiny in India, provided detailed breakdowns of expenditure priorities, key scheme allocations, and fiscal targets. Key findings: The top 13 ministries account for 54% of total government expenditure, reflecting high concentration of spending. Defence received the highest allocation at ₹7.84 lakh crore, constituting 15% of total expenditure — the largest ever in absolute terms, reflecting India's military modernisation agenda amid regional security concerns. Pradhan Mantri Awas Yojana-Urban (PMAY-U) saw a massive increase of 179% in its allocation, signalling a renewed push for urban housing — directly linked to PM Modi's target of "Housing for All." Jal Jeevan Mission (JJM) was allocated ₹67,670 crore, aimed at delivering piped water to every rural household. Capital Expenditure stood at ₹12.22 lakh crore — 3.1% of GDP — reflecting continuity of infrastructure-led growth strategy. Fiscal deficit target is 4.3% of GDP for FY27. The PRS analysis highlighted that while gross tax revenue is projected to grow at 10.8%, the actual devolution to states may be lower due to higher cess and surcharge collections not shared with states. The report is widely used by IAS/RAS aspirants, civil society, and legislators for objective budget assessment.
PRS India: Union Budget 2026-27 Full Analysis — Top Ministries, Defence, PMAY-U, Jal Jeevan Mission
PRS India's Budget 2026-27 analysis: top 13 ministries = 54% expenditure; Defence highest at ₹7.84 lakh crore (15%); PMAY-U up 179%; Jal Jeevan Mission ₹67,670 crore; Fiscal deficit 4.3% GDP.
Key facts
- Top 13 ministries account for 54% of total Union Budget 2026-27 expenditure
- Defence: highest allocation at ₹7.84 lakh crore = 15% of total expenditure
- PMAY-U: allocation increased by 179% — largest ever push for urban housing
- Jal Jeevan Mission: ₹67,670 crore allocated for piped water to rural households
- Capital Expenditure: ₹12.22 lakh crore = 3.1% of GDP
- Fiscal Deficit target: 4.4% of GDP for FY27
- Gross tax revenue projected to grow 10.8% — but cess/surcharge not shared with states
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According to PRS India's analysis of Union Budget 2026-27, which ministry received the highest allocation and what was it?
PRS India's Union Budget 2026-27 analysis lists the Ministry of Defence as the highest-allocated ministry, with ₹7,84,678 crore, accounting for about 15% of total budgeted expenditure. Other high-allocation ministries included Road Transport and Highways, Railways and Home Affairs, but none exceeded Defence.
Source: PRS India
Frequently asked questions
What percentage of Union Budget 2026-27 is held by the top 13 ministries?
54%
Which ministry received the highest allocation in Budget 2026-27 and how much?
Defence — ₹7.84 lakh crore (15% of total expenditure)
By what percentage did PMAY-U allocation increase in Budget 2026-27?
179%
What is the allocation for Jal Jeevan Mission in Budget 2026-27?
₹67,670 crore
What is the fiscal deficit target for FY27 as per Budget 2026-27?
4.4% of GDP
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