The central government’s fiscal deficit reached 38.1 per cent of the full-year target at the end of August, amounting to ₹5.98 trillion, according to data released by the Controller General of Accounts (CGA) on Tuesday.
The fiscal deficit, which measures the gap between government expenditure and revenue, reflects the Centre’s spending patterns in the first five months of FY2025-26.
During April-August, the government’s total receipts stood at ₹12,82,709 crore, accounting for 36.7 per cent of the Budget Estimates (BE). This included ₹8,10,407 crore from net tax revenue, ₹4,40,332 crore from non-tax revenue, and ₹31,970 crore from non-debt capital receipts.
State governments received ₹5,30,148 crore as their share of taxes, ₹74,431 crore higher than the corresponding period last year.
On the expenditure front, the Centre spent ₹18,80,862 crore, representing 37.1 per cent of the BE. Revenue expenditure was ₹14,49,283 crore, including ₹5,28,668 crore for interest payments and ₹1,50,377 crore for major subsidies. Capital expenditure rose to ₹4,31,579 crore, up from ₹3 trillion a year ago, highlighting the government’s focus on physical infrastructure.
The fiscal data indicates sustained government spending and elevated transfers to states, contributing to the widening fiscal deficit during the period.