India's Fiscal Deficit and GST Collections in 2025

The Indian government's fiscal deficit, which is the difference between what it spends and what it earns, has reached 62.3% of the yearly target by November 2025.

This means the government has spent more than it has earned so far this year.

The government had planned to spend Rs 29.26 lakh crore, but it has already spent Rs 19.49 lakh crore.

The government earns money from taxes and other sources, but this time it earned less than expected.

However, experts believe that the government will still meet its financial goals because it might save money in other areas.

In December 2025, the Goods and Services Tax (GST) collections showed early signs of stabilisation after rate cuts.

The GST collections in December were ₹1,74,550 crore, which is a 2.51% rise over November but a marginal decline of 1.3% year-on-year.

Experts note that the drop is because the collection number for the year-ago period includes ₹12,301 crores in compensation cess.

Adjusting for this, December 2025 collections are 6.07% higher year-on-year.

The stabilisation of GST collections is seen as a positive sign, indicating that the tax buoyancy is holding up even as effective rates are lower.

The government is expected to meet its financial goals, and the GST reforms are likely to continue to support growth.