Data released by the Controller General of Accounts (CGA) showed that India's fiscal deficit touched 9.6 per cent of the current financial year (FY27) budget target at the end of May 2026. The fiscal deficit, or gap between the government’s expenditure and revenue, was Rs 1.62 lakh crore in value terms at the end of May.
According to the CGA data, net tax receipts amounted to Rs 3.48 lakh crore, while non-tax revenue stood at Rs 3.51 lakh crore. Total expenditure of the central government reached Rs 8.81 lakh crore by the end of May, of which Rs 2.51 lakh crore was capital spending.
The Centre has set a fiscal deficit target of 4.3 per cent of Gross Domestic Product (GDP) or Rs 16.96 lakh crore in the current fiscal. At the end of May, 2025, the Centre’s fiscal deficit had reduced to 0.8 per cent of the BE of 2025-26 or Rs 13,163 crore.
