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

The Centre has set a fiscal deficit target of Rs 16.96 lakh crore for the financial year 2026-27. The deficit recorded between April and August accounted for 38.1 per cent of the annual target, based on the government’s latest fiscal data.

The government’s total receipts during the April-August period stood at Rs 13,67,709 crore, equivalent to 37.5 per cent of the corresponding full-year Budget Estimate.

The receipts included 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 same period, the Centre transferred Rs 5,90,391 crore to state governments as their share of tax devolution. This was Rs 60,243 crore lower than the amount transferred during the corresponding period of the previous year.

The Centre’s total expenditure through August 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 spent under the revenue account, while Rs 5,09,949 crore went towards capital expenditure.

Interest payments accounted for Rs 5,14,810 crore of the revenue expenditure, while major subsidies amounted to Rs 1,87,037 crore, according to the Finance Ministry.

Net tax revenue collected during the period reached 29.2 per cent of the full-year estimate, slightly higher than the 28.6 per cent recorded during the same period last year.

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

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

The government has also planned to borrow Rs 7.86 lakh crore during the second half of FY27. The borrowing programme includes Rs 15,000 crore through Sovereign Green Bonds and will be conducted through 23 weekly auctions, according to the Finance Ministry.