India’s fiscal deficit stood at ₹7.10 lakh crore during the first five months of FY2026-27 (April-August), accounting for 41.9 per cent of the full-year Budget Estimate, according to official data released by the Ministry of Finance on Wednesday.
The Centre has budgeted a fiscal deficit of ₹16.96 lakh crore for FY27. Finance Minister Nirmala Sitharaman had set the fiscal deficit target at 4.3 per cent of GDP for the financial year.
Centre’s Revenue Collections
The government received ₹13,67,709 crore during April-August, which represents 37.5 per cent of the total receipts estimated for 2026-27.
The receipts included:
- Net tax revenue: ₹8,37,921 crore
- Non-tax revenue: ₹4,54,549 crore
- Non-debt capital receipts: ₹75,239 crore
The Centre transferred ₹5,90,391 crore to state governments as their share of taxes during the period, which was ₹60,243 crore lower than the corresponding period of the previous year.
Expenditure at ₹20.78 Lakh Crore
The Centre’s total expenditure during April-August stood at ₹20,77,958 crore, or 38.9 per cent of the FY27 Budget Estimate.
Of the total expenditure:
- Revenue expenditure: ₹15,68,009 crore
- Capital expenditure: ₹5,09,949 crore
- Interest payments: ₹5,14,810 crore
- Major subsidies: ₹1,87,037 crore
Net tax revenue reached 29.2 per cent of the full-year estimate, compared with 28.6 per cent during the corresponding period last year.
Non-tax revenue stood at 68.2 per cent of the annual target, compared with 75.5 per cent in the year-ago period.
Centre to Borrow ₹7.86 Lakh Crore in Second Half
Meanwhile, the Central government plans to borrow ₹7.86 lakh crore during the second half of FY27. The borrowing programme includes ₹15,000 crore through Sovereign Green Bonds.
