1 month ago
India’s Q1 Fiscal Deficit Hits 18.2% of FY27 Target
India’s government spent more money in the first three months of the 2026‑27 fiscal year than it earned.
The shortfall, called the fiscal deficit, was about 3.1 trillion rupees, which is 18.2% of the total budget for the year.
Most of the extra spending went to big projects like roads and railways.
The government also gave more money to farmers and fuel users, which added to the cost.
Even though taxes grew, the deficit is still within the target of 4.3% of the country’s economy, so the government hopes to finish the year on track.
India’s Q1 FY27 fiscal deficit reached ₹3.1 lakh crore, 18.2% of the full‑year budget estimate.
Total government expenditure rose 11% YoY to ₹13.6 lakh crore, with capital spending up 23.7% to ₹3.4 lakh crore.
Net tax receipts climbed 19% to ₹6.4 lakh crore, while non‑tax revenue grew modestly to ₹3.8 lakh crore.
The deficit is 4.3% of GDP for FY27, with the government aiming to stay within this target through stronger tax collections and RBI dividends.
Rising subsidies on petroleum and fertilizers, especially urea, are expected to pressure the deficit further.
- Who
- Government of India (Centre)
- What
- Fiscal deficit for the first quarter of FY27
- Where
- India
- When
- April–June 2026
- Why
- Higher spending on capital projects and subsidies, offset by increased tax collections
Key facts
- Fiscal deficit Q1 FY27
- ₹3.1 lakh crore
- Deficit % of Budget Estimate
- 18.2%
- Budgeted deficit FY27
- ₹16.96 lakh crore (4.3% of GDP)
- Net tax receipts Q1
- ₹6.4 lakh crore
- Capital expenditure Q1
- ₹3.4 lakh crore
Quotes
D.K. Srivastava
Chief policy advisor, EY India
“Higher spending on urea subsidy reflects the impact of elevated global fertilizer prices following the West Asia conflict.”
livemint.com
“Encouragingly, capital expenditure momentum has improved, with key sectors (railways, defence) seeing strong growth.”
livemint.com
Sources
Related news
India’s FY27 Fiscal Deficit Reaches 26.8% Target by July
India’s Fiscal Deficit Reaches 26.8% of FY27 Target
Centre's Q1 Receipts Reach 28.7% of FY27 Target
Sitharaman Says India Meets FY26 Deficit Target, Sets Debt Goal
Fiscal Deficit Seen Near 4.3% Despite West Asia Shock
Ampcus Cyber Convenes GRC India AI Conclave 2026
Avaada Electro leads SEBI-approved IPO pipeline worth Rs 50,000 crore
Indus Towers Shares Down 10% as Brokers Stay Bullish
Brokerages Raise Target Price for IndusInd Bank
