India’s Fiscal Deficit Reaches Rs 7.10 Lakh Crore in First Five Months of FY27: Govt Data

September 30, 2026

New Delhi: India’s fiscal deficit stood at Rs 7.10 lakh crore during the first five months of the current financial year (April-August 2026), accounting for 41.9 per cent of the government’s full-year Budget Estimate, according to official data released on Wednesday.

The Centre has budgeted a fiscal deficit of Rs 16.96 lakh crore for FY27. The deficit recorded during April-August accounted for 38.1 per cent of the annual fiscal deficit target.

Centre Receives Rs 13.67 Lakh Crore Till August

The government received Rs 13,67,709 crore up to August 2026, which represents 37.5 per cent of the corresponding FY27 Budget Estimate for total receipts.

The receipts comprised Rs 8,37,921 crore in net tax revenue, Rs 4,54,549 crore in non-tax revenue and Rs 75,239 crore in non-debt capital receipts.

During the period, Rs 5,90,391 crore was transferred to state governments as devolution of their share of taxes. This was Rs 60,243 crore lower than the amount transferred during the corresponding period last year.

Centre’s Expenditure Stands at Rs 20.77 Lakh Crore

The Centre’s total expenditure during the first five months stood at Rs 20,77,958 crore, or 38.9 per cent of the FY27 Budget Estimate.

Of this, Rs 15,68,009 crore was under the revenue account and Rs 5,09,949 crore under the capital account, according to the Ministry of Finance.

Revenue expenditure included Rs 5,14,810 crore in interest payments and Rs 1,87,037 crore in major subsidies.

Fiscal Deficit Target Set at 4.3 Per Cent of GDP

Net tax revenue reached 29.2 per cent of the full-year estimate, compared with 28.6 per cent during the corresponding period last year.

Non-tax revenue stood at 68.2 per cent of the annual target, compared with 75.5 per cent in the year-ago period.

Finance Minister Nirmala Sitharaman had set the fiscal deficit target at 4.3 per cent of GDP in the Union Budget for FY27.

Meanwhile, the Central government plans to borrow Rs 7.86 lakh crore during the second half of FY27, including Rs 15,000 crore through Sovereign Green Bonds. The Finance Ministry said the borrowing would be conducted through 23 weekly auctions.