MM TAX CLUB

The Government of India has released the consolidated Monthly Accounts up to December 2025, offering a snapshot of how public finances are shaping up in the current financial year. The numbers give a clear view of revenue mobilisation, expenditure trends, and transfers to States.

 Key Highlights at a Glance

Government Receipts

Up to December 2025, the Government of India has received a total of ₹25.25 lakh crore, which is 72.2% of the Budget Estimates (BE) for FY 2025–26.

This includes:

• ₹19.39 lakh crore as Tax Revenue (Net to Centre)

• ₹5.40 lakh crore as Non-Tax Revenue

• ₹46,047 crore as Non-Debt Capital Receipts

A notable point this year is the higher transfer to State Governments.
The Centre has devolved ₹10.38 lakh crore as States’ share of taxes so far—₹1.37 lakh crore more than last year, reflecting stronger fiscal federalism and improved revenue sharing.

Government Expenditure

Total expenditure incurred up to December 2025 stands at ₹33.81 lakh crore, which is 66.7% of the BE for FY 2025–26.

Break-up of expenditure:

• Revenue Expenditure: ₹25.93 lakh crore

• Capital Expenditure: ₹7.88 lakh crore

Within revenue expenditure:

• Interest Payments: ₹9.11 lakh crore

• Major Subsidies: ₹3.17 lakh crore

???? What This Means

• Revenue collection is progressing steadily and remains broadly aligned with budget targets.

• Higher devolution to States strengthens cooperative federalism and supports state-level development.

• Interest payments continue to be a major component of expenditure, highlighting the ongoing cost of public debt.

• Capital expenditure remains significant, indicating continued focus on infrastructure and long-term growth.

 Final Takeaway

As of December 2025, the Government’s fiscal position reflects stable revenue performance, controlled expenditure, and enhanced support to States. The remaining quarter will be crucial in determining how closely the actual figures align with the Budget Estimates for FY 2025–26.