India's Fiscal Deficit for April-September at Rs 5.73 Lakh Crore, 36.5% of FY26 Target
India's fiscal deficit for the first half of FY26 stood at Rs 5.73 lakh crore, equivalent to 36.5% of the full-year target, widening from 29.4% a year ago. The government aims to reduce the fiscal deficit to 4.4% of GDP for FY26, down from 4.8% in the previous year. Total receipts were Rs 17.30 lakh crore, and expenditure was Rs 23.03 lakh crore in this period.
For the six months ending September 2025, India's fiscal deficit reached Rs 5.73 lakh crore, which is 36.5% of the government's annual estimate for FY26, up from 29.4% in the corresponding period the previous year. This indicates a widening gap between government revenue and expenditure. The government targets narrowing the fiscal deficit to 4.4% of GDP in FY26, compared to 4.8% in FY25. Total government receipts for the period stood at Rs 17.30 lakh crore (49.5% of the budget estimate), composed of Rs 12.29 lakh crore in tax revenue and Rs 4.66 lakh crore in non-tax revenue, the latter boosted by a significant dividend payment from the Reserve Bank of India. Government expenditure was Rs 23.03 lakh crore (45.5% of the budget), with capital expenditure at Rs 5.8 lakh crore, showing increased investment in infrastructure. Despite higher expenditure, tax revenue collections were lower at 43.3% of budget estimates, impacted partly by GST revisions. The fiscal management reflects an increased focus on capital spending, with the government having utilized over half of its annual capex target in the first half. Interest payments remained significant, with Rs 5.78 lakh crore spent in this period. Overall, the fiscal data reflect a broader policy effort to support economic growth while managing the fiscal deficit within targeted limits.
