- Hindi News
- Business
- India’s Fiscal Deficit Doubles To ₹4.68 Lakh Crore In First Four Months Of FY26
New Delhi6 minutes ago
- copy link
The fiscal deficit of the central government has increased by 70% on an annual basis in the first four months of this financial year (2025-26). According to data from the Controller General of Accounts (CGA), the deficit in April-July stood at ₹4.68 lakh crore, which is 29.9% of the full year estimate. It was ₹2.77 lakh crore in the same period last year.
The main reason for this increase in fiscal deficit is the government’s capital expenditure, which increased by 31% to ₹3.47 lakh crore in April-July. Last year the same expenditure was ₹2.61 lakh crore. The government maintains the pace of development through infrastructure and public investment.
The central government has set the fiscal deficit target at 4.4% of GDP for the financial year 2025-26. This is down from 4.8% in FY25.
Tax revenue in 4 months was ₹6.62 lakh crore
Net tax revenue between April-July stood at ₹6.62 lakh crore, which is 23% of the annual target. Last year it was ₹7.15 lakh crore. Non-tax revenue stood at ₹4.03 lakh crore (69.2% target) and total revenue receipts at ₹10.95 lakh crore (31.3% target). Revenue receipts and total expenditure position Total expenditure:
- Expenditure: The government’s total expenditure during this period has increased from ₹13 lakh crore to ₹15.64 lakh crore, which is 31% of the target for the entire year.
- Earning: During this period, the net income from tax fell slightly to ₹ 6.62 lakh crore as compared to ₹ 7.15 lakh crore last year. One reason for this was the extension of the tax filing deadline in July.
- Non Tax Revenue: Total revenue receipts stood at ₹4.03 lakh crore (69.2% target) and total revenue receipts stood at ₹10.95 lakh crore (31.3% target).
- Reduction in Subsidy: The good thing is that the total expenditure on major subsidies has come down to ₹1.14 lakh crore from ₹1.26 lakh crore last year.
RBI gave 24.7% more surplus
RBI’s surplus: RBI has given a surplus (extra money) of ₹ 2.69 lakh crore to the government, 24.7% more than last year. This money acts as a safety net for the government, allowing it to stick to its deficit target despite a possible shortfall in tax revenue or higher expenditure.
What is fiscal deficit?
Fiscal deficit measures how much the government’s total earnings (from taxes and other sources) exceed its total expenditure in a financial year. This is the extra money that the government needs to meet its expenses, and it is this difference that the government has to meet by borrowing. It is important for the economy because it shows how much money the government is borrowing from the market, which impacts interest rates and the country’s debt.
Source link
[ad_3]
