India’s fiscal deficit for April-May of the financial year 2026-27 was Rs 1.624 lakh crore, representing 9.6% of the full-year target, as per data from the Controller General of Accounts. The government has set a fiscal deficit target of Rs 16.96 lakh crore for the entire FY27, indicating a positive fiscal position in line with the Budget for 2026-27.
In the same period of the previous fiscal year (FY26), the fiscal deficit was Rs 13,163 crore, accounting for 0.8% of the full-year target. May saw a fiscal surplus of Rs 2 lakh crore, up from Rs 1.73 lakh crore in May of the previous year.
The government’s total receipts in April were Rs 2.13 lakh crore, with total expenditure at Rs 5.75 lakh crore, resulting in a fiscal deficit of around Rs 3.62 lakh crore for the first month of the financial year. Non-tax revenue in May was Rs 3.27 lakh crore, compared to Rs 2.90 lakh crore in the same month last year.
Capital expenditure in May was Rs 61,200 crore, slightly lower than the previous year’s Rs 61,600 crore. However, for April-May, capital expenditure increased to Rs 2.51 lakh crore from Rs 2.21 lakh crore a year earlier. Gross tax revenue for April-May was Rs 5.25 lakh crore, up from Rs 5.15 lakh crore in the same period last year.
The government met its fiscal deficit target of 4.4% in FY 2025-26 and has further reduced the target to 4.3% of GDP for the current fiscal year as part of the fiscal consolidation process. A decrease in the fiscal deficit enhances the economy’s fundamentals, promoting growth with price stability and reducing government borrowing, thereby increasing funds available for lending to businesses and consumers, fostering economic growth.
