The Centre’s fiscal deficit stood at 17.9 per cent of the full-year target at the end of June, according to data released by the Controller General of Accounts (CGA) on Thursday.
Illustration: Uttam Ghosh
It was at 8.4 per cent of Budget Estimates (BE) of 2024-25 in the first three months of the previous financial year.
In absolute terms, the fiscal deficit, or gap between the government’s expenditure and revenue, was Rs 280,732 crore in the April-June period of the 2025-26 fiscal year.
The Centre estimates the fiscal deficit during 2025-26 at 4.4 per cent of the GDP, or Rs 15.69 lakh crore.
The Government of India has received Rs 9.41 lakh crore (26.9 per cent of corresponding BE 2025-26 of the total receipts) up to June, 2025.
This includes Rs 5.4 lakh crore net tax revenue, Rs 3.73 lakh crore of non-tax revenue and Rs 28,018 crore of non-debt capital receipts.
CGA data showed Rs 3,26,941 crore has been transferred to state governments as devolution of share of taxes by the government, which is Rs 47,439 crore higher than the previous year.
Total expenditure incurred by the Centre was Rs 12.22 lakh crore, or 24.1 per cent of corresponding BE 2025-26.
Of the total expenditure, Rs 9.47 lakh crore was on revenue account and Rs 2.75 lakh crore on capital account.
Of the total revenue expenditure, Rs 3.86 lakh crore was on account of interest payments and Rs 83,554 crore was on account of major subsidies.
Commenting on the CGA data, Aditi Nayar, Chief Economist of ICRA said tepid direct tax collections in June 2025 pulled down the performance of gross tax revenues in the month, although this was driven by an adverse base, even as devolution to states maintained a robust pace.
Although the Centre’s capital expenditure expanded a sharp 52 per cent year-on-year in Q1, FY26, this was on a low base and was 1 per cent lower than the levels seen in Q1, FY24.
The healthy year-on-year growth in capex number in Q1 FY26, is also likely to have supported investment demand, auguring well for the GDP growth print for the quarter, Nayar added.
