Key facts
- India's fiscal deficit for April-July was 4.55 trillion rupees ($47.81 billion).
- This deficit is 26.8% of the target for the financial year ending March 31, 2027.
- The deficit in the same period last year was 4.7 trillion rupees.
- Net tax receipts increased to 8.5 trillion rupees from 6.6 trillion rupees year-on-year.
- Total government expenditure rose to 17.6 trillion rupees from 15.6 trillion rupees.
- Capital expenditure increased to 4.5 trillion rupees from 3.5 trillion rupees.
India's fiscal deficit for the period of April to July reached 4.55 trillion rupees, which is 26.8% of the target set for the financial year ending March 31, 2027. This figure is a slight improvement compared to the 4.7 trillion rupees recorded in the same period of the previous year. The government has set a fiscal deficit target of 4.3% of GDP, amounting to 16.96 trillion rupees, for the financial year 2027.
During the April-July period, net tax receipts stood at 8.5 trillion rupees, an increase from 6.6 trillion rupees a year prior. Non-tax revenue was reported at 4.2 trillion rupees, up from 4 trillion rupees. Total government expenditure rose to 17.6 trillion rupees from 15.6 trillion rupees in the corresponding period last year. Capital expenditure, which is allocated for building physical infrastructure, saw an increase to 4.5 trillion rupees from 3.5 trillion rupees.
Earlier data for the April-June quarter showed India's fiscal deficit at 3.1 trillion rupees, or 18.2% of the FY27 target, compared to 2.8 trillion rupees in the same period last year. This deficit had nearly doubled from 9.6% at the end of May, reflecting increased government spending as revenue collections remained on track. The government is expected to rely on stronger tax collections and non-tax revenues to meet its fiscal deficit target for FY27.