India’s Fiscal Deficit Recorded At 9.6% Of Budget Estimates, Infra Spending At Rs 2.5 Trillion
India’s fiscal deficit for the April-May period stood at 9.6 per cent of the Budget estimate for the financial year ending March 31 or at Rs 1.62 trillion ($17.11 billion), data released by the government said on Tuesday. The fiscal deficit in the corresponding period of the previous financial year stood at Rs 131.6 billion.
Notably, Centre has set a fiscal deficit target of 4.3 per cent of gross domestic product (GDP), or Rs 16.96 trillion, for FY27.
As per the data shared by the government, net-tax receipts stood at Rs 3.5 trillion while the Non-tax revenue was Rs 3.5 trillion, compared with Rs 3.6 trillion in the same period last year.
Further, the total government expenditure rose to Rs 8.8 trillion from Rs 7.5 trillion a year earlier.
Spending on physical infrastructure or the Capital expenditure increased to Rs 2.5 trillion from Rs 2.2 trillion in the corresponding period last year.
Upto May 2026, the Government of India has received Rs 7,18,669 crore (19.7% of corresponding BE 2026-27 of Total Receipts). This comprised of Rs 3,48,138 crore of Tax Revenue (Net to Centre), Rs 3,50,867 crore of Non-Tax Revenue and Rs 19,664 crore of Non-Debt Capital Receipts.
Further, Rs 1,75,557 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India during this period which is Rs 12,086 crore higher than the previous year.
Total Expenditure incurred by Government of India is Rs 8,81,023 crore (16.5% of corresponding BE 2026-27), out of which Rs 6,30,020 crore is on Revenue Account and Rs 2,51,003 crore is on Capital Account.
Out of the Total Revenue Expenditure, Rs 1,81,461 crore is on account of Interest Payments and Rs 75,542 crore is on account of Major Subsidies.