New Delhi, Aug 31: India’s fiscal deficit rose to ₹4.55 lakh crore by July, accounting for 26.8% of the full-year target of ₹16.96 lakh crore, even as strong tax and non-tax receipts helped keep the government’s finances broadly on track.
The deficit utilisation was 29.9% in the year-ago period. However, it rose sharply from 18.2% at the end of June as government spending outpaced receipts, according to the latest monthly accounts released by the Finance Ministry on Monday.
The Centre has budgeted a fiscal deficit of 4.3% of GDP for 2026-27.
Total receipts during April-July stood at ₹13.07 lakh crore, or 35.8% of the annual estimate of ₹36.52 lakh crore. These included ₹8.45 lakh crore in net tax revenue, ₹4.23 lakh crore in non-tax revenue and ₹39,136 crore in non-debt capital receipts.
Total expenditure reached ₹17.62 lakh crore, or 32.9% of the full-year allocation. Revenue expenditure accounted for ₹13.11 lakh crore, while capital expenditure stood at ₹4.51 lakh crore, representing 36.9% of the annual capex allocation of ₹12.22 lakh crore. This compares with 30.9% utilisation during the same period last year.
Interest payments amounted to ₹4.27 lakh crore, while major subsidies totalled ₹1.54 lakh crore. Fertiliser subsidy spending was particularly high, with urea subsidy utilisation reaching 57% of its annual allocation by July.
The Centre’s revenue deficit stood at just ₹43,645 crore, or 7.4% of the full-year target, against 28.9% a year earlier.
The government transferred ₹3.72 lakh crore to states as their share of tax devolution, ₹56,190 crore less than in the year-ago period.
