FY27 fiscal deficit stands at Rs 4.55 lakh crore by July, 26.8 pc of target

The Centre's fiscal deficit stood at 26.8 per cent of the budgeted target in the first four months of the current financial year, according to data released by the Controller General of Accounts (CGA) on Monday, August 31.

In absolute terms, the fiscal deficit, the gap between the government's expenditure and revenue stood at Rs 4,55,144 crore during the April-July period of 2026-27.

For the full financial year, the government has budgeted a fiscal deficit of Rs 16.96 lakh crore, equivalent to 4.3 per cent of the country's GDP.

The pace of deficit accumulation was lower than in the corresponding period of the previous fiscal. At the end of July 2025, the fiscal deficit had reached 29.9 per cent of the Budget Estimates for 2025-26.

The CGA data showed that the Centre's net tax revenue stood at around Rs 8.45 lakh crore during April-July 2026, accounting for 29.5 per cent of the Budget Estimates for the current financial year.

In the corresponding period a year earlier, net tax revenue had amounted to 23.3 per cent of the Budget Estimates for 2025-26.

Government expenditure, meanwhile, stood at around Rs 17.62 lakh crore during the first four months of the current fiscal, or 32.9 per cent of the Budget Estimates.

This was higher than the 30.9 per cent of Budget Estimates recorded during the April-July period of 2025-26.

The Centre also transferred Rs 3,72,354 crore to state governments as their share of tax devolution during the April-July period.

The amount transferred to states was Rs 56,190 crore lower than the corresponding period of the previous financial year.

The fiscal deficit is closely watched as an indicator of the government's borrowing requirement and the pace of public spending relative to its revenues.

(With inputs from PTI)