India’s fiscal deficit touched Rs 7.10 lakh crore during the first five months of FY27, accounting for 41.9 per cent of the full-year Budget Estimate of Rs 16.96 lakh crore. The government’s total expenditure stood at Rs 20.78 lakh crore, while receipts reached Rs 13.68 lakh crore during April-August.
New Delhi, Sept 2026 : India’s fiscal deficit stood at Rs 7.10 lakh crore during the first five months of the current financial year, April to August, according to official data released on Wednesday.
The deficit accounted for 41.9 per cent of the government’s full-year Budget Estimate for FY27. The Centre has projected a fiscal deficit of Rs 16.96 lakh crore for the entire financial year.
The fiscal deficit reflects the gap between the government’s expenditure and its receipts, excluding borrowings. Finance Minister Nirmala Sitharaman had set the fiscal deficit target at 4.3 per cent of GDP in the Union Budget for FY27.
According to data released by the Finance Ministry, the Centre received Rs 13,67,709 crore during April-August, equivalent to 37.5 per cent of the corresponding Budget Estimate for total receipts in FY27.
The receipts included Rs 8,37,921 crore in net tax revenue accruing to the Centre, Rs 4,54,549 crore in non-tax revenue and Rs 75,239 crore in non-debt capital receipts.
During the same period, Rs 5,90,391 crore was transferred to state governments as their share of tax devolution. This amount was Rs 60,243 crore lower than the corresponding period of the previous year.
The Centre’s total expenditure during the April-August period stood at Rs 20,77,958 crore, representing 38.9 per cent of the full-year Budget Estimate for FY27.
Of the total expenditure, Rs 15,68,009 crore was incurred under the revenue account, while Rs 5,09,949 crore was spent under the capital account.
Within revenue expenditure, interest payments accounted for Rs 5,14,810 crore, while major subsidies amounted to Rs 1,87,037 crore, according to the Finance Ministry.
Net tax revenue during the period reached 29.2 per cent of the full-year estimate, slightly higher than the 28.6 per cent recorded during the corresponding period of the previous year.
However, non-tax revenue stood at 68.2 per cent of its annual target, compared with 75.5 per cent during the year-ago period.
Meanwhile, the Central government has planned to borrow Rs 7.86 lakh crore during the second half of FY27. The borrowing programme will include the issuance of Sovereign Green Bonds worth Rs 15,000 crore.
According to the Finance Ministry, the second-half borrowing will be carried out through 23 weekly auctions. The borrowing programme forms part of the government’s overall financing strategy for meeting its fiscal requirements during the financial year.
The latest fiscal data provide an early indication of the Centre’s revenue collection and expenditure position against the targets set for FY27.
