India’s April-November fiscal deficit at Rs 9.76 lakh crore, widens on-year to 62.3% of FY26 aim
Total revenues stood at Rs 19 lakh crore, while total expenses between April and November stood at Rs 29.25 lakh crore. These were 55.7% and 57.8% of this fiscal year’s budget target.
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Total revenues for the previous year were 59.1% of forecast, while expenditures increased marginally from 56.9% the previous year.
Revenue receipts stood at Rs 19.10 lakh crore; of which tax revenue was Rs 13.93 lakh crore and non-tax revenue was Rs 5.16 lakh crore.
Tax and non-tax revenues were 49.1% and 88.6% of the budget estimate. While tax revenues remained below the budget estimate by 55.9% in the last fiscal year, non-tax revenues increased compared to 78.3% of the budget estimate in the same period last year.
Non-tax revenue increased with the Reserve Bank of India approving dividend payment of Rs 2.69 lakh crore to the central government from Rs 2.11 lakh crore transferred last year. This will help the central government reduce its fiscal deficit. The data showed that the revenue shortfall stood at Rs 3.57 lakh crore or 68.2% of the fiscal year’s budget target.
While announcing the federal budget for this financial year starting April 1, Finance Minister Nirmala Sitharaman set the fiscal deficit target for 2025-26 at 4.4%, in line with the Indian government’s commitment to narrow the budget deficit to below 4.5% by fiscal 2026. India’s fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate.
This comes as the economy is expected to grow at its slowest pace in four years, with the possibility of increasing spending and lowering income tax rates to encourage consumption.
The lower fiscal deficit target for 2025-26 was expected in the hope of strong tax collections despite the government’s ongoing push for capital expenditure, which is vital to support consumption, create employment and help India achieve its target of becoming the world’s third-largest economy by 2030.
On the expenditure side, New Delhi spent around 2.88 lakh crore rupees on major subsidies such as food, fertilizer and oil. This was 75% of the revised annual target and slightly higher than the 73% of budgeted spending in the similar period last year.
