The central government’s fiscal deficit fell to 0.8 per cent of the full-year target at the end of May, mainly due to a whopping Rs 2.69 lakh crore dividend received from the Reserve Bank of India.

Illustration: Dominic Xavier/Rediff

The fiscal deficit, or gap between the government’s expenditure and revenue, had touched 11.9 per cent of the Budget Estimates (BE) for 2025-26 or Rs 1.86 lakh crore in April.

Following the RBI’s dividend payout, the Centre’s fiscal deficit was reduced to 0.8 per cent of BE of 2025-26 or Rs 13,163 crore, the data released by the Controller General of Accounts (CGA) showed.

The Centre estimates the fiscal deficit during 2025-26 at 4.4 per cent of the GDP or Rs 15.69 lakh crore.

It stood at 3.1 per cent of BE of 2024-25 in the first two months of the previous financial year.

According to the CGA, the amount the government received under the head ‘dividends and profits’ was Rs 2.78 lakh crore or 86 per cent of the BE.

The data on monthly accounts showed that the Government of India received Rs 7.32 lakh crore, 21 per cent of corresponding BE 2025-26 of total receipts, up to May 2025.

This comprised Rs 3.5 lakh crore tax revenue (net to centre), Rs 3.56 lakh crore of non-tax revenue and Rs 25,224 crore of non-debt capital receipts.

CGA said Rs 1.63 lakh crore has been transferred to state governments as devolution of share of taxes by the Government of India, which was Rs 23,720 crore higher than the previous year.

Total expenditure incurred by the Centre was Rs 7.46 lakh crore, 14.7 per cent of corresponding BE 2025-26.

Of the total expenditure, Rs 5.24 lakh crore was in the revenue account and Rs 2.21 lakh crore in the capital account.

Out of the total revenue expenditure, Rs 1.47 lakh crore was on account of interest payments and Rs 51,253 crore towards major subsidies.