New data from the Controller General of Accounts (CGA) reveals that the Indian government's fiscal health showed a wider gap in the first seven months of the current financial year compared to the same period last year.
Key Fiscal Deficit Figures
According to the CGA report released on Friday, the central government's fiscal deficit stood at 52.6% of the full-year target at the end of October 2025. This marks a noticeable increase from the previous year, where the deficit was 46.5% of the 2024-25 Budget Estimates (BE) during the same April-October period.
In absolute terms, the shortfall between government spending and earnings touched Rs 8,25,144 crore for the first seven months of the 2025-26 financial year. The Centre has projected the full-year deficit at 4.4% of GDP, which translates to Rs 15.69 lakh crore.
Revenue Collection and State Transfers
The government's total receipts until October reached Rs 18 lakh crore, constituting 51.5% of the current year's budget estimate. A detailed breakdown shows that this amount included Rs 12.74 lakh crore in net tax revenue, Rs 4.89 lakh crore from non-tax sources, and Rs 37,095 crore in non-debt capital receipts.
Meanwhile, tax devolution to states saw a significant surge, with transfers totaling Rs 8,34,957 crore between April and October. This represents an increase of Rs 1,11,981 crore compared to the corresponding period in the previous financial year.
Government Spending Patterns
On the expenditure front, the government spent Rs 26.25 lakh crore during the April-October period, which amounts to 51.8% of the annual estimate. This total expenditure was divided between Rs 20 lakh crore in revenue spending and Rs 6.17 lakh crore in capital expenditure.
Within the revenue expenditure category, interest payments accounted for Rs 6.73 lakh crore, while major subsidies required Rs 2.46 lakh crore, as per the CGA data.
The higher fiscal deficit percentage compared to the previous year indicates increased government spending relative to revenue collection in the early part of the financial year, with significant allocations going toward state transfers and capital expenditure.
