Govt Spends Rs 2.75 Lakh Crore On Big Infra Projects To Boost Growth In April-June

India’s fiscal deficit stood at ₹2.8 lakh crore for the April-June quarter, accounting for 17.9 per cent of the full-year estimate for FY26, according to government data released on Thursday.

The figures indicate a strong fiscal position, driven by robust capital expenditure and higher non-tax revenue.

Capital expenditure reached ₹2.75 lakh crore, 24.5 per cent of the annual target, reflecting the government’s aggressive investments in infrastructure projects aimed at stimulating growth and job creation.

Total government receipts amounted to ₹9.14 lakh crore, or 26.9 per cent of the budgetary target. Of this, revenue receipts were ₹9.13 lakh crore, with tax revenue at ₹5.40 lakh crore (19% of target) and non-tax revenue at ₹3.73 lakh crore (64% of target).

A major boost came from the Reserve Bank of India, which transferred a 27 per cent higher dividend to the Centre—₹2.69 lakh crore, compared to ₹2.11 lakh crore in the previous year.

Experts suggest that this dividend surge could help the government stay on track with its fiscal deficit target of 4.4 per cent for FY26.

The government’s total expenditure during Q1 stood at ₹9.47 lakh crore, about 24.1 per cent of the ₹50.65 lakh crore annual outlay.

Spending on major subsidies—food, fertilisers, and LPG—totalled ₹51,252 crore, which was 13 per cent of the revised target.

Finance Minister Nirmala Sitharaman, in the Union Budget 2025–26, reaffirmed the Centre’s commitment to reducing the fiscal deficit to below 4.5 per cent by the end of FY26. The fiscal deficit in FY25 was recorded at 4.8 per cent of GDP.

India’s Q1 fiscal numbers reflect disciplined spending, strong revenue generation, and targeted capital investment—key drivers for sustaining economic momentum while staying committed to fiscal consolidation.

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