India’s fiscal deficit for the April‑July quarter of FY 2026‑27 was Rs 4.55 lakh crore, equivalent to 26.8 % of the full‑year target, according to government data released on Monday. The figure is lower than the same period last year, when the deficit stood at Rs 4.7 lakh crore, or 29.9 % of the annual estimate.
Total receipts during the four‑month period reached Rs 13.07 lakh crore, while overall expenditure was Rs 17.62 lakh crore. These amounts represent 35.8 % and 32.9 % respectively of the budget estimates for the current financial year, compared with 31.3 % of receipts and 30.9 % of expenditure in the corresponding period of the previous year.
Revenue receipts amounted to Rs 12.68 lakh crore, comprising Rs 8.45 lakh crore in tax revenue and Rs 4.23 lakh crore in non‑tax revenue. Non‑tax receipts were boosted by the Reserve Bank of India’s dividend of Rs 2.87 lakh crore to the centre, up from Rs 2.69 lakh crore transferred last year.
The revenue deficit was Rs 43,645 crore, or 7.4 % of the fiscal year’s budget target. The government met its fiscal deficit target of 4.4 % of GDP in FY 2025‑26 and has further lowered the target to 4.3 % of GDP for the current year as part of its consolidation plan.
Officials noted that a rising subsidy bill, driven by higher petroleum and fertilizer prices linked to the West Asia crisis, could increase expenditure and put pressure on the deficit. A lower deficit is seen as supporting economic fundamentals, reducing borrowing needs and freeing bank funds for private lending.
