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India’s Fiscal Deficit Reaches Rs 7.1 Lakh Crore
The government spends money on many things and also collects money through taxes and other receipts.
A fiscal deficit happens when the government spends more than it receives, excluding borrowings.
India’s deficit reached about Rs 7.1 lakh crore in the first five months of financial year 2026-27.
This was 41.9 per cent of the amount planned for the entire year.
The government’s full-year deficit target is Rs 16.96 lakh crore.
It collected about Rs 8.38 lakh crore in net taxes by August 2026.
It also spent about Rs 20.78 lakh crore during those five months.
Both spending and deficit usage were higher compared with the same period last year when measured against their yearly targets.
India’s fiscal deficit reached Rs 7,10,249 crore between April and August 2026.
The deficit represented 41.9 per cent of the full-year 2026-27 target.
The Centre has budgeted a 2026-27 fiscal deficit of 4.3 per cent of GDP, or Rs 16.96 lakh crore.
Net tax revenue stood at approximately Rs 8.38 lakh crore, or 29.2 per cent of the annual estimate.
Total government expenditure reached about Rs 20.78 lakh crore, or 38.9 per cent of the full-year estimate.
- Who
- The Centre, with figures reported by the Controller General of Accounts.
- What
- India’s fiscal deficit reached Rs 7,10,249 crore, or 41.9 per cent of the full-year target, during the first five months of 2026-27.
- Where
- India.
- When
- Between April and August 2026; the figures were released on Wednesday.
- Why
- The deficit reflects the gap between the Centre’s total expenditure and receipts, excluding borrowings.
Key facts
- Fiscal deficit
- Rs 7,10,249 crore from April through August 2026
- Share of annual target
- 41.9 per cent of the 2026-27 full-year target
- Full-year deficit target
- Rs 16.96 lakh crore, or 4.3 per cent of GDP
- Net tax revenue
- Approximately Rs 8.38 lakh crore, equal to 29.2 per cent of the annual estimate
- Total expenditure
- Approximately Rs 20.78 lakh crore, equal to 38.9 per cent of the annual estimate
- Previous-year comparison
- The deficit represented 38.1 per cent, tax collections 28.6 per cent, and expenditure 37.1 per cent of their respective annual estimates during the same period of 2025-26
Sources
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