Archive · 31 Aug 2026
India’s FY27 Fiscal Deficit Reaches 26.8% Target by July
The government spends money on things such as roads, subsidies and interest payments.
When it spends more than it receives, the difference is called a fiscal deficit.
By the end of July, India had used 26.8% of the deficit amount planned for the whole financial year.
The government’s spending was ₹17.62 trillion, while its receipts were ₹13.07 trillion.
Tax and non-tax collections were strong compared with the yearly targets.
Spending on building long-term assets, called capital expenditure, increased quickly.
Subsidy spending was also higher than during the same period last year.
The government plans to keep the full-year deficit at ₹16.96 trillion, or 4.3% of GDP.
India’s fiscal deficit reached ₹4.55 trillion by July, or 26.8% of the FY27 budget target.
The FY27 fiscal deficit target is ₹16.96 trillion, equivalent to 4.3% of GDP.
Total expenditure reached ₹17.62 trillion, while receipts stood at ₹13.07 trillion during April-July.
Capital expenditure rose to ₹4.51 trillion, representing 36.9% of its full-year allocation.
The deficit was financed mainly through domestic sources, including ₹3.49 trillion in market borrowings.
- Who
- The Government of India, based on accounts released by the Controller General of Accounts.
- What
- The fiscal deficit reached ₹4.55 trillion, or 26.8% of the FY27 annual target, by July.
- When
- By the end of July, covering April-July of FY27.
- Where
- India.
- Why
- Government expenditure exceeded receipts, while capital expenditure and subsidy spending gathered pace.
- Fiscal deficit by July
- ₹4.55 trillion, or 26.8% of the FY27 target
- FY27 deficit target
- ₹16.96 trillion, or 4.3% of GDP
- Total expenditure
- ₹17.62 trillion, equal to 32.9% of the annual estimate
- Total receipts
- ₹13.07 trillion, equal to 35.8% of the annual estimate
- Capital expenditure
- ₹4.51 trillion, or 36.9% of the annual allocation
- Interest payments
- ₹4.27 trillion, or 30.4% of the annual allocation
- Market borrowings
- ₹3.49 trillion, or 27% of the FY27 budget