India's Fiscal Deficit Shows Significant Improvement in Current Financial Year
According to the latest data released by the Controller General of Accounts (CGA), the Centre's fiscal deficit stood at Rs 9.8 lakh crore at the end of January 2025. This figure accounts for 63 per cent of the full-year Budget target for the financial year 2025-26, as reported by PTI.
Comparative Analysis Reveals Positive Fiscal Trends
The deficit level is notably lower compared to the same period a year earlier, when it was recorded at 74.5 per cent of the annual target. This reduction indicates an improved fiscal position during the current financial year, reflecting better management of government finances.
The government has set an estimated fiscal deficit for 2025-26 at 4.4 per cent of the Gross Domestic Product (GDP), which is equivalent to Rs 15.58 lakh crore. This target aligns with efforts to maintain economic stability and growth.
Detailed Breakdown of Government Receipts and Expenditures
Based on the monthly accounts from the CGA, the Centre received Rs 27.08 lakh crore up to January, representing 79.5 per cent of the Revised Estimates (RE) for total receipts in 2025-26. The receipts comprised:
- Rs 20.94 lakh crore of net tax revenue to the Centre
- Rs 5.57 lakh crore of non-tax revenue
- Rs 57,129 crore of non-debt capital receipts
Data further showed that Rs 11.39 lakh crore was transferred to state governments as their share of taxes. This amount is Rs 65,588 crore higher than the devolution during the corresponding period last year, highlighting increased support to states.
Expenditure Patterns and Key Components
Total expenditure by the government during this period stood at Rs 36.9 lakh crore, which is 74.3 per cent of the corresponding Revised Estimate for FY26. The expenditure breakdown includes:
- Rs 28.47 lakh crore as revenue expenditure
- Rs 8.42 lakh crore as capital expenditure
Within the revenue expenditure, the CGA data revealed significant allocations:
- Rs 9.88 lakh crore was spent on interest payments
- Rs 3.54 lakh crore was allocated to major subsidies
This detailed financial snapshot underscores the government's ongoing efforts to balance spending with revenue generation, contributing to a healthier fiscal outlook for the nation.
