The Central government’s fiscal deficit has hit 80.4% of the budgeted target by the end of the first 11 months of the financial year 2025-2026. This indicates a strong fiscal position as per the figures released by the Comptroller General of Accounts. The gap between government expenditure and revenue amounted to Rs 12.53 lakh crore from April to February, compared to the full-year target of Rs 15.58 lakh crore.
Net tax collections have remained strong, totaling nearly Rs 21.45 lakh crore, which is 80.2% of the yearly target. This marks an improvement from the previous year where tax collections stood at 79.6% of the target during the same period. The government’s capital expenditure on major infrastructure projects in highways, ports, and railways has surged to Rs 9.29 lakh crore, reaching 84.8% of the FY26 target.
During the April-February period, the Centre’s revenue deficit widened to Rs 3.89 lakh crore from Rs 1.96 lakh crore till January, representing 73.8% of the annual target. However, there was a significant decrease from the previous year when it had already reached 87.1% of the FY25 target. Total expenditure for the first 11 months of the fiscal year amounted to Rs 40.44 lakh crore, which is 81.5% of the FY26 estimated target, lower than the previous year’s 82.5%.
The government’s total receipts for April-February stood at Rs 27.91 lakh crore, accounting for 82% of the full-year target. This is an improvement from the comparable year-ago period where the receipts were lower at 80.9%. Revenue receipts, driven by tax collections, reached 81.6% of the annual target in the first 11 months, amounting to Rs 27.26 lakh crore.
Notably, non-tax revenue collection narrowed to 87% of its annual target, with dividends and profits collection reaching 96% of the annual target. By the end of January, the collection of dividends and profits remained steady at Rs 3.6 lakh crore.
