India’s Fiscal Deficit At 54.5% Of Full-Year Target In April–December

India’s fiscal deficit for the first nine months of the financial year 2025-26 stood at Rs 8.55 lakh crore, amounting to 54.5 per cent of the full-year target set in the Union Budget, according to data released by the Finance Ministry on Friday.

The deficit was lower than the 56.7 per cent recorded during the same period of the previous year, reflecting an improvement in fiscal management.

Total receipts during April–December stood at Rs 25.25 lakh crore, which is 72.2 per cent of the budgeted estimate for the full year. In comparison, receipts during the same period last year were 72.3 per cent of the annual target.

Overall expenditure in the first nine months was Rs 33.81 lakh crore, or 66.7 per cent of the budget estimate, slightly lower than the 67 per cent recorded a year earlier.

Net tax receipts rose to Rs 19.4 lakh crore from Rs 18.4 lakh crore in the corresponding period of the previous financial year. Non-tax revenue also increased to Rs 5.4 lakh crore from Rs 4.5 lakh crore.

Capex Push And Fiscal Consolidation Path

Total government expenditure increased to Rs 33.8 lakh crore, up from Rs 32.3 lakh crore a year earlier. Capital expenditure rose to Rs 7.9 lakh crore from Rs 6.9 lakh crore, underscoring the government’s continued focus on infrastructure projects such as highways, ports, and railways to support growth and employment.

During this period, Rs 10,38,164 crore was transferred to state governments as devolution of taxes, Rs 1,37,014 crore higher than last year.

Finance Minister Nirmala Sitharaman has pegged the fiscal deficit target for 2025-26 at 4.4 per cent of GDP, or Rs 15.7 lakh crore, as part of a declining glide path. India’s fiscal deficit for 2024-25 stood at 4.8 per cent of GDP under the revised estimate.

Also Read: Economic Survey Forecasts India’s GDP Growth At 6.8-7.2% For FY27