India's Fiscal Deficit Hits Rs 1.62 Lakh Crore in April-May as Spending Outpaces Receipts
Updated
Updated · Moneycontrol · Jun 30
India's Fiscal Deficit Hits Rs 1.62 Lakh Crore in April-May as Spending Outpaces Receipts
1 articles · Updated · Moneycontrol · Jun 30
Summary
Rs 1.62 lakh crore of fiscal deficit was recorded in April-May, taking the Centre to 9.6% of its FY27 full-year target versus 0.8% a year earlier.
Rs 8.81 lakh crore of expenditure drove the widening, with spending reaching 16.5% of the annual budget estimate as revenue expenditure rose to 15.3% and capital spending to 20.5%.
Rs 7.19 lakh crore of total receipts lagged last year’s pace at 19.7% of the budget estimate, with net tax revenue at Rs 3.48 lakh crore and non-debt capital receipts notably weaker.
Rs 3.51 lakh crore of non-tax revenue still provided support, helped by the RBI’s record Rs 2.86 lakh crore surplus transfer, even though that category also trailed last year’s pace.
The government is targeting a fiscal deficit of 4.3% of GDP for FY27, slightly tighter than the revised 4.4% goal for FY26.