India’s Fiscal Deficit Eases, April-July Gap Falls To 26.8% Of FY27 Target
New Delhi: India’s fiscal deficit declined during the first four months of financial year 2026-27, helped by higher receipts and a larger dividend transfer from the Reserve Bank of India. The fiscal deficit stood at Rs 4.55 lakh crore during April-July, equivalent to 26.8 percent of the government’s full-year target, according to official data released on Monday. During the corresponding period…
In the first quarter of India's financial year 2026-27, the country's fiscal deficit fell to 26.8% of the target, according to official data released on Monday. This decline was driven by increased government receipts and a larger dividend transfer from the Reserve Bank of India (RBI). The total fiscal deficit for April-July was Rs 4.55 lakh crore, slightly lower than the Rs 4.70 lakh crore recorded for the same period in the previous fiscal year.
Government receipts amounted to Rs 13.07 lakh crore, which was 35.8% of the Budget Estimate for FY27, while expenditures were Rs 17.62 lakh crore, representing 32.9% of the annual target. Revenue receipts totaled Rs 12.68 lakh crore, comprising Rs 8.45 lakh crore in tax revenue and Rs 4.23 lakh crore in non-tax revenue. The RBI's record dividend transfer of Rs 2.87 lakh crore to the Central government bolstered non-tax revenue.
India's revenue deficit for the quarter was Rs 43,645 crore, or 7.4% of the full-year Budget target. The Finance Minister, Nirmala Sitharaman, unveiled a ₹12.2 lakh crore infrastructure plan to support the economy while maintaining the fiscal deficit target of 4.3% of GDP for FY27. However, concerns remain over rising petroleum and fertiliser prices due to geopolitical tensions, which could increase subsidy costs and strain government spending.
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