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19h ago

India Says FY26 Deficit Target Is on Track as April–July Gap Widens to 29.9%

Officials attribute the early‑year shortfall to front‑loaded capital spending, timing effects, with a record RBI dividend cushioning revenues.

A man speaks on his mobile phone next to an installation of the Rupee logo and Indian currency coins outside the Reserve Bank of India (RBI) headquarters in Mumbai, India, August 1, 2025. REUTERS/Hemanshi Kamani/File Photo
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Overview

  • Government data show the April–July fiscal deficit at Rs 4.68 lakh crore, equal to 29.9% of the FY26 goal, compared with 17.2% in the same period last year.
  • Total receipts reached Rs 10.95 lakh crore and expenditure Rs 15.63 lakh crore, including capital spending of about Rs 3.46–3.47 lakh crore that rose roughly 33% year on year.
  • Non-tax revenue climbed to about Rs 4.03–4.04 lakh crore, boosted by the Reserve Bank of India’s Rs 2.69 lakh crore dividend transfer.
  • Net tax inflows were softer as devolution to states totaled about Rs 4.28 lakh crore, with analysts citing a July contraction in personal income tax collections due to filing deadline extensions and base effects.
  • DEA Secretary Anuradha Thakur said the Centre remains on course to meet the 4.4% of GDP FY26 deficit target, with the CGA and economists cautioning that monthly figures reflect timing mismatches and that proposed GST changes could affect revenues.