Business EconomyPosted at: Oct 30 2026 6:31PM

New Delhi, Oct 30 (UNI) India's fiscal deficit stood at Rs 7.14 lakh crore during the first six months of the financial year 2026-27, equivalent to 42.1 per cent of the full-year Budget Estimate, according to the latest government accounts released on Friday. The deficit was higher than Rs 5.7 lakh crore recorded during the corresponding period of the previous financial year.
The government has pegged its fiscal deficit target for FY27 at Rs 16.96 lakh crore, or 4.3 per cent of India's gross domestic product (GDP). The fiscal deficit represents the gap between the government's total expenditure and its non-debt receipts. The latest figures indicate that the Centre has utilised 42.1 per cent of its annual deficit allowance in the first half of the financial year.
According to the Controller General of Accounts (CGA), the Centre's total receipts stood at Rs 18.35 lakh crore during April-September, accounting for 50.3 per cent of the full-year Budget Estimates. This included Rs 12.76 lakh crore in net tax revenue, Rs 4.80 lakh crore in non-tax revenue and Rs 78,602 crore in non-debt capital receipts.
Total government expenditure increased to Rs 25.49 lakh crore during the period, compared with around Rs 23 lakh crore in the corresponding period last year. This represents an increase of approximately 10.7 per cent year-on-year, outpacing the growth in receipts.
One of the key highlights of the September accounts was the increase in capital expenditure. The Centre spent Rs 6.54 lakh crore on capital expenditure during April-September, compared with approximately Rs 5.80 lakh crore in the corresponding period last year, registering a growth of 12.7 per cent.
Capital expenditure is considered an important indicator of government investment in productive assets such as roads, railways, infrastructure, and other development projects. The increase suggests that the government has continued to prioritise infrastructure-led growth despite fiscal pressures.
The Centre's capital expenditure allocation for FY27 stands at approximately Rs 12.22 lakh crore. With spending at Rs 6.54 lakh crore, the government has utilised around 53.6 per cent of its annual capital expenditure budget in the first half of the financial year.
Revenue expenditure accounted for Rs 18.95 lakh crore of the Centre's total spending during the first six months of FY27. Of this, Rs 6.46 lakh crore went towards interest payments on government borrowings, while Rs 2.22 lakh crore was spent on major subsidies.
The government's interest payment obligations remain a significant component of its expenditure, limiting the fiscal space available for other spending priorities.
Major subsidy expenditure increased 10.1 per cent year-on-year to Rs 2.23 lakh crore. Food subsidy spending rose 16 per cent to Rs 1.03 lakh crore, while the combined fertiliser subsidy bill increased 11.2 per cent to Rs 1.19 lakh crore.
The government has budgeted Rs 4.11 lakh crore for major subsidies in FY27 and has utilised around 54 per cent of this allocation in the first half of the year.
Net tax collections increased to Rs 12.76 lakh crore during April-September, compared with approximately Rs 12.3 lakh crore in the corresponding period last year, registering growth of around 3.8 per cent.
Non-tax revenue rose 3.1 per cent year-on-year to Rs 4.81 lakh crore. Meanwhile, non-debt capital receipts more than doubled to Rs 78,602 crore from Rs 34,770 crore a year earlier. These receipts include recoveries of loans and other receipts, including disinvestment proceeds.
The Centre transferred Rs 6.99 lakh crore to state governments as their share of tax revenues during April-September. This was Rs 67,658 crore higher than the amount devolved during the corresponding period last year.
Tax devolution is an important source of revenue for states, helping them finance expenditure on infrastructure, welfare schemes, healthcare, and other development activities.
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