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44m ago

India’s Fiscal Deficit Reaches 29.9% of FY26 Target by July on Higher Spending

Despite a record RBI dividend lifting non-tax revenue, front‑loaded capex, subsidy, interest costs plus hefty tax devolution to states widened the early‑year gap.

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

  • April–July deficit stood at Rs 4.68 lakh crore, up to 29.9% of the FY26 goal compared with 17.2% a year earlier, CGA data showed.
  • Total receipts were Rs 10.95 lakh crore (31.3% of BE) against expenditure of Rs 15.63 lakh crore (30.9% of BE).
  • Tax revenue net to the Centre was Rs 6.61 lakh crore (23.3% of BE) while non-tax revenue rose to Rs 4.03 lakh crore, aided by the RBI’s Rs 2.69 lakh crore dividend.
  • Capital outlay reached roughly Rs 3.46 lakh crore versus Rs 2.61 lakh crore a year earlier, with revenue deficit at about Rs 1.51 lakh crore; interest payments were Rs 4.46 lakh crore and major subsidies Rs 1.13 lakh crore.
  • The Centre devolved about Rs 4.28 lakh crore to states, Rs 61,914 crore more than last year, and the CGA cautioned monthly figures reflect timing mismatches rather than the final yearly outcome.