India’s fiscal deficit for the first 10 months of FY 2025-26 hit Rs 9.8 lakh crore, amounting to 63% of the full-year estimate, as per official data. During April-January, net tax receipts rose to Rs 20.94 lakh crore from the previous year’s Rs 19 lakh crore. Non-tax revenue also increased to Rs 5.57 lakh crore compared to Rs 4.7 lakh crore in the same period last year.
Total government expenditure stood at Rs 36.9 lakh crore, up from Rs 35.7 lakh crore in the corresponding period of the previous year. Capital expenditure, focusing on infrastructure projects like highways and ports, surged to Rs 8.4 lakh crore from Rs 7.6 lakh crore, indicating a push for growth and job creation.
The fiscal deficit signifies the variance between the government’s total spending and revenue. The data suggests that India is on track to meet its fiscal deficit target of 4.4% for 2025-26. Finance Minister Nirmala Sitharaman aims for a further reduction to 4.3% of GDP for 2026-27, emphasizing fiscal prudence for sustainable economic growth.
Sitharaman highlighted the decrease in India’s debt-to-GDP ratio to 56.1% in 2025-26, with plans to lower it to 55.6% in 2026-27. This reduction is expected to lower interest payments, aiding in maintaining a lower fiscal deficit and enabling more resources for development.
