India's fiscal deficit stood at Rs 7.10 lakh crore during the first five months of the current financial year (April–August 2026), accounting for 41.9 per cent of the government's full-year Budget Estimate, official data released on Wednesday showed.
The Controller General of Accounts data, published by the Finance Ministry, shows the Centre remains broadly on track with the fiscal consolidation path laid out in the Union Budget. Finance Minister Nirmala Sitharaman had pegged the fiscal deficit for FY27 at Rs 16.96 lakh crore, equivalent to 4.3 per cent of GDP.
Revenues and spending
The government received Rs 13,67,709 crore up to August 2026, which is 37.5 per cent of the Budget Estimate of total receipts for 2026-27. This comprised Rs 8,37,921 crore of tax revenue (net to the Centre), Rs 4,54,549 crore of non-tax revenue and Rs 75,239 crore of non-debt capital receipts.
Net tax revenue stood at 29.2 per cent of the full-year estimate, slightly ahead of the 28.6 per cent recorded in the corresponding period of last year. Non-tax revenue was at 68.2 per cent of the annual target, though that was below the 75.5 per cent seen a year earlier.
Total expenditure by the Centre during the five months was Rs 20,77,958 crore, or 38.9 per cent of the Budget Estimate. Of this, Rs 15,68,009 crore was spent on the revenue account and Rs 5,09,949 crore on the capital account. Interest payments absorbed Rs 5,14,810 crore of the revenue outlay, while major subsidies accounted for Rs 1,87,037 crore.
The Centre also transferred Rs 5,90,391 crore to state governments as their share of taxes during the period, which was Rs 60,243 crore less than in the previous year.
Borrowing plan for the second half
Alongside the monthly accounts, the government confirmed it will borrow Rs 7.86 lakh crore in the second half of FY27 through 23 weekly auctions, including Sovereign Green Bonds worth Rs 15,000 crore. Total gross market borrowing for the year has been reduced by Rs 1,20,494 crore to Rs 15,99,506 crore from the Budget Estimate of Rs 17,20,000 crore, mainly by switching government securities worth Rs 1,14,286 crore maturing in 2026-27 — a move officials describe as part of a deliberate debt-management strategy.
In the first half of the year, the government mobilised Rs 8,13,506 crore from bonds, slightly below its Rs 8.2 lakh crore target. The Finance Ministry said the government retains the flexibility to adjust the auction calendar, including greenshoe options of up to Rs 2,000 crore per security.
Sources: Lokmat Times (IANS) — India's Fiscal Deficit Stands at Rs 7.10 Lakh Crore in 5 Months | ThePrint (PTI) — Centre to borrow Rs 7.86 lakh cr in Oct-Mar
The Controller General of Accounts data, published by the Finance Ministry, shows the Centre remains broadly on track with the fiscal consolidation path laid out in the Union Budget. Finance Minister Nirmala Sitharaman had pegged the fiscal deficit for FY27 at Rs 16.96 lakh crore, equivalent to 4.3 per cent of GDP.
Revenues and spending
The government received Rs 13,67,709 crore up to August 2026, which is 37.5 per cent of the Budget Estimate of total receipts for 2026-27. This comprised Rs 8,37,921 crore of tax revenue (net to the Centre), Rs 4,54,549 crore of non-tax revenue and Rs 75,239 crore of non-debt capital receipts.
Net tax revenue stood at 29.2 per cent of the full-year estimate, slightly ahead of the 28.6 per cent recorded in the corresponding period of last year. Non-tax revenue was at 68.2 per cent of the annual target, though that was below the 75.5 per cent seen a year earlier.
Total expenditure by the Centre during the five months was Rs 20,77,958 crore, or 38.9 per cent of the Budget Estimate. Of this, Rs 15,68,009 crore was spent on the revenue account and Rs 5,09,949 crore on the capital account. Interest payments absorbed Rs 5,14,810 crore of the revenue outlay, while major subsidies accounted for Rs 1,87,037 crore.
The Centre also transferred Rs 5,90,391 crore to state governments as their share of taxes during the period, which was Rs 60,243 crore less than in the previous year.
Borrowing plan for the second half
Alongside the monthly accounts, the government confirmed it will borrow Rs 7.86 lakh crore in the second half of FY27 through 23 weekly auctions, including Sovereign Green Bonds worth Rs 15,000 crore. Total gross market borrowing for the year has been reduced by Rs 1,20,494 crore to Rs 15,99,506 crore from the Budget Estimate of Rs 17,20,000 crore, mainly by switching government securities worth Rs 1,14,286 crore maturing in 2026-27 — a move officials describe as part of a deliberate debt-management strategy.
In the first half of the year, the government mobilised Rs 8,13,506 crore from bonds, slightly below its Rs 8.2 lakh crore target. The Finance Ministry said the government retains the flexibility to adjust the auction calendar, including greenshoe options of up to Rs 2,000 crore per security.
Sources: Lokmat Times (IANS) — India's Fiscal Deficit Stands at Rs 7.10 Lakh Crore in 5 Months | ThePrint (PTI) — Centre to borrow Rs 7.86 lakh cr in Oct-Mar
