India's Fiscal Deficit Hits 42.1% of Annual Target in First Half of FY27
India's fiscal deficit reached Rs 7.14 lakh crore in April-September, marking 42.1% of the annual target. See the full expenditure and revenue breakdown.
India's fiscal deficit has climbed to 42.1 per cent of its annual Budget Estimates for the first half of the current financial year (FY27). According to the latest government data, the deficit stood at Rs 7.14 lakh crore for the period between April and September, showing a notable increase from the 36.5 per cent recorded during the same window last year.
The figures, released by the Controller General of Accounts (CGA) under the Ministry of Finance, highlight the gap between the Union Government's total spending and its total receipts, excluding any borrowings. For the full year, the government has set a Budget Estimate of Rs 16.96 lakh crore.
Expenditure Breakdown: Focus on Infrastructure
Total government spending during the first six months of FY27 reached Rs 25.5 lakh crore. This accounts for 47.7 per cent of the annual Budget Estimates, a slight increase from the 45.5 per cent spent during the same period in the previous year.
The spending is divided into two primary categories:
- Revenue Expenditure: This stood at Rs 18.95 lakh crore, which is 45.9 per cent of the annual target.
- Capital Expenditure: Spending on asset creation and infrastructure reached Rs 6.55 lakh crore, accounting for 53.6 per cent of the Budget Estimates. This is up from 51.8 per cent during the corresponding period last year, indicating a continued push toward infrastructure development.
Revenue and Receipts: Where the Money Came From
On the income side, the Centre managed to collect Rs 18.35 lakh crore between April and September. This represents 50.3 per cent of the full-year Budget Estimates, marginally higher than the 49.5 per cent collected during the same period last year.
The receipts are further broken down as follows:
- Net Tax Revenue: The government collected Rs 12.76 lakh crore, representing 44.5 per cent of the annual target.
- Non-Tax Revenue: This sector saw a significant surge, reaching Rs 4.8 lakh crore, which is 72.2 per cent of the total Budget Estimates.
Other Key Financial Indicators
The data also revealed a sharp rise in the revenue deficit, which stood at Rs 1.38 lakh crore (23.4 per cent of the annual target), compared to just 5.2 per cent in the same period last year.
Additionally, the government's interest payments for the six-month period amounted to Rs 6.46 lakh crore, accounting for 46 per cent of the annual Budget Estimates.
The CGA has clarified that these provisional and unaudited figures may not necessarily reflect the final deficit for the year, as the timing of government receipts and expenditures can cause fluctuations in monthly accounts.