Archive · 30 Jun 2025
India's Fiscal Deficit Shrinks with RBI Dividend
The Indian government's spending gap compared to its income has shrunk significantly.
This is because the central bank gave a large sum of money to the government.
The government has received money from taxes and other sources, which is 21% of what was expected.
The government has also spent money on various programs, and a part of it went to the states.
Fiscal deficit fell to 0.8% of the full-year target at May-end 2025.
The RBI contributed Rs 2.69 lakh crore to the fiscal surplus through dividends.
Government receipts totaled Rs 7.32 lakh crore, or 21% of the budget estimate.
Total expenditure reached Rs 7.46 lakh crore, of which Rs 5.24 lakh crore was in the revenue account.
Rs 1.63 lakh crore was transferred to state governments, Rs 23,720 crore higher than the previous year.
- Who
- The Union government and the Reserve Bank of India.
- What
- The fiscal deficit dropped to 0.8% of the annual target by the end of May 2025.
- When
- Data pertains to the period up to the end of May 2025.
- Where
- India
- Why
- The fiscal deficit decreased because of a dividend received from the Reserve Bank of India.
- Fiscal Deficit (May-end 2025)
- 0.8% of full-year target
- Fiscal Deficit (April)
- 11.9% of Budget Estimates (BE)
- RBI Dividend
- Rs 2.69 lakh crore
- Government Receipts (May 2025)
- Rs 7.32 lakh crore
- Tax Revenue (net)
- Rs 3.5 lakh crore
- Total Expenditure (May 2025)
- Rs 7.46 lakh crore
