India’s fiscal deficit for the first eight months of this fiscal year through November stood at 8.47 lakh crore rupees, or 52.5% of annual estimates, government data showed today.
The fiscal deficit widened from 50.7% reported in the comparable year-earlier period.
Total receipts stood at 18.94 lakh crore rupees, while overall expenditure in April to November was at 27.41 lakh crore rupees. They were 59.1% and 56.9% of this fiscal year’s budget target.
Total receipts in the year-earlier period was at 64.3% of estimate, while expenditure narrowed from 58.9% a year earlier.
Revenue receipts stood at 18.70 lakh crore rupees, of which tax revenue was 14.43 lakh crore rupees and non-tax revenue was 4.27 lakh crore rupees.
Tax and non-tax revenues were 55.9% and 78.3% of the budgeted estimate. Both tax revenue and non-tax revenue narrowed from 61.6% and 94.3% of budget forecast in the same period last year.
Non-tax revenue jumped as the Reserve Bank of India transferred Rs 2.11 lakh crore as surplus to the central government. The dividend payout is more than double the amount budgeted from the central bank and state-run lenders.
By November, the government’s capital expenditure—investment in physical infrastructure—stood at 5.13 lakh crore rupees, representing 46.2% of the annual target. This marks a decline compared with 5.86 lakh crore rupees spent during the same period last year. The pace of spending this year has been sluggish, primarily due to the impact of national elections, making it likely that capital expenditure will fall short of the annual target.
Revenue deficit was at 3.57 lakh crore rupees or 61.5% of the fiscal year’s budget target, sharply widening from 39.8% in year-ealier period, data showed.
While announcing the federal budget for this fiscal year that started April 1, Finance Minister Nirmala Sitharaman revised the fiscal gap aim down to 4.9%, well below the 5.1% budget gap pegged in the Interim budget. Sitharaman also pegged the fiscal deficit target at 5.1% for the next fiscal year.
In the Budget, the government stuck to its fiscal consolidation roadmap even as coalition parties demanded more funds from the Modi government and the middle class urged for tax relief measures.
The lower fiscal deficit target for 2025-26 was expected on hopes of strong tax collections, despite the government’s continued capex push that is crucial to shore up consumption and create jobs and help India achieve its aim to be world’s third largest economy by 2030.
On the expenditure side, New Delhi spent about 2.79 lakh crore rupees on major subsidies such as food, fertilisers and petroleum. This was 73% of the annual aim, wider than 65% of budgeted expenditure in the comparable period last year.
