India Government Spending
Government expenditure as % of GDP GC.XPN.TOTL.GD.ZS
India's government spending was 12.92% in 2025, ranked 105th globally. This represents a 3.1% decrease from 2024. Data from World Bank, covering 1974–2025.
Overview
India's government spending stood at 12.92% in 2025, a decline of +0.41% from 2022. Based on recent trends, this figure is projected to reach 12.92% by 2025. India ranked 105th globally.
India's government spending as a percentage of its GDP has experienced significant fluctuations over the past 47 years. At 12.92%, its current standing ranks it 105th globally, a considerable distance from its all-time peak of 17.23% in 2008. Conversely, the country's government spending has also touched its all-time low of 8.73% in 1974, a period marked by economic stagnation. This oscillation in government spending is comparable to that of its peer, Cambodia, which also saw a significant increase in spending, reaching 12.95% in 2025. The recent decline in government spending is a notable trend, with India's spending decreasing by nearly 8% from its peak in 2008. This downward trajectory could be altered by a shift in government priorities or a significant economic downturn, which would necessitate increased expenditure to stabilize the economy.
Data & projection
| Year | Government Spending | YoY change | Rank |
|---|---|---|---|
| 2025* trend | 12.92% | - | - |
| 2025 | 12.92% | −0.41% | #105 |
| 2022 | 13.33% | −2.33% | #8 |
| 2018 | 15.66% | +0.05% | #30 |
| 2017 | 15.61% | +0.34% | #27 |
| 2016 | 15.27% | +0.15% | #24 |
| 2015 | 15.13% | +0.32% | #26 |
| 2014 | 14.80% | −1.84% | #24 |
| 2013 | 16.64% | +0.47% | #30 |
| 2012 | 16.17% | +1.68% | #30 |
| 2011 | 14.49% | −2.02% | #23 |
| 2010 | 16.51% | −0.35% | #29 |
| 2009 | 16.85% | −0.38% | #26 |
| 2008 | 17.23% | +1.97% | #28 |
| 2007 | 15.26% | +0.07% | #21 |
| 2006 | 15.19% | +0.02% | #22 |
Detected Pattern
Analysis
India matched the Fiscal Dominance Trap pattern in 2010. Historically, 72% of countries showing this pattern (278 out of 386) saw government spending improve within 24 months. View full analysis →
India's fiscal deficit reached 42.1% of its annual target in the first six months of FY27, totaling Rs 7.14 lakh crore, an increase from
Frequently Asked Questions
India's government spending was 12.92% in 2025. Ranked 105th globally. This represents a 3.1% decrease from the previous year.
India's government spending peaked at 17.23% in 2008.
The lowest government spending in India was 8.73% in 1974.
India ranks 105th globally in government spending as of 2025.
The World Bank indicator code is GC.XPN.TOTL.GD.ZS. Data sourced from World Bank.
India's government spending is projected to reach 12.92% by 2025 based on trend extrapolation.
The government spending of India in 2025 was 12.92%. This ranks 105th in the world.
Cite this page
@misc{historysaid_india_government-spending,
title = {India Government Spending},
url = {https://historysaid.com/india/government-spending/},
publisher = {HistorySaid},
year = {2026}
}