The Controller General of Accounts (CGA) in its latest data has showed that India's fiscal deficit touched 26.8 per cent of the current financial year (FY27) budget target at the end of July 2026. The deficit was at 29.9 per cent of Budget Estimates (BE) of 2025-26 in April-July of FY26. In value terms, the fiscal deficit, or gap between the government’s expenditure and revenue, was Rs 4.55 lakh crore in the April-July period of FY27. The government has pegged its fiscal deficit target for FY27 at 4.3% of Gross Domestic Product (GDP), or Rs 16.96 lakh crore.
According to the CGA, the Centre's net tax revenue was about Rs 8.45 lakh crore, or 29.5 per cent of the corresponding BE of 2026-27 of total receipts, up to July 2026. In the corresponding period of the previous fiscal year, the net tax revenue was at 23.3 per cent of that year's BE.
The data on monthly accounts showed that the government’s total expenditure during the first four months of FY27 stood at about Rs 17.62 lakh crore, or 32.9 per cent of BE. In the year-ago period, it was at 30.9 per cent of BE. The Centre transferred Rs 3,72,354 crore to state governments as devolution of share of taxes during the period, which is Rs 56,190 crore lower than the previous year.
