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2w ago

RBI Dividend and Tax Gains Cut April-May Deficit to 0.8% of FY26 Target

A record Reserve Bank of India dividend underpinned a May surplus that boosts prospects of capping the fiscal gap at 4.4% of GDP

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Overview

  • India’s fiscal deficit for April-May FY26 stood at ₹13,163 crore, or 0.8% of the full-year budget target.
  • A record ₹2.69 lakh crore RBI dividend boosted non-tax revenue to ₹3.57 lakh crore, a 41.8% year-on-year increase.
  • Net tax receipts rose 10% to ₹3.51 lakh crore in April-May despite income tax relief measures.
  • Capital expenditure surged 54% year-on-year to ₹2.21 lakh crore, reflecting the government’s infrastructure push.
  • The Centre recorded a ₹1.73 lakh crore surplus in May, positioning it to meet the 4.4% of GDP deficit goal for FY26.