New Delhi: India’s fiscal deficit for the first half of the current financial year (April–September 2025) rose to ₹5.73 lakh crore, accounting for 36.5% of the full-year target of ₹15.68 lakh crore, according to data released by the Controller General of Accounts (CGA) on Friday.
This marks a significant increase from the 29.4% recorded during the same period last year, reflecting a rise in government expenditure and a moderation in revenue receipts.
Revenue and Expenditure Overview
During the first six months of FY26, the Centre’s total expenditure stood at ₹23 lakh crore, which represents 45% of the annual Budget estimate. Out of this, capital expenditure (capex) amounted to ₹5.8 lakh crore, or 51.8% of the full-year target — a notable rise compared to 37.3% during the same period last year.
The revenue deficit during the April–September period stood at ₹27,147 crore, equivalent to 5.2% of the annual target, indicating an improvement from the 12.8% recorded a year ago.
Revenue Receipts Near Half-Year Mark
The government’s total receipts for the six-month period came in at ₹16.95 lakh crore, which is 49.6% of the full-year target. In comparison, revenue mop-up during the same period last year stood higher at 51.8%.
Tax collections — the largest contributor to the government’s revenue — reached ₹12.29 lakh crore, representing 43.3% of the fiscal target for FY26.
On the other hand, non-tax revenue was a strong performer, rising to ₹4.66 lakh crore, or 79.9% of the annual target. This figure includes ₹3.5 lakh crore earned from dividends and profits of public sector companies, which alone account for 99% of the yearly target in that category.
Additionally, non-debt capital receipts saw a sharp uptick, reaching ₹34,770 crore — 45.8% of the full-year estimate — compared to 18.7% of the target achieved during the same period in FY25.
Fiscal Outlook
The latest data highlights the government’s continued focus on public capital spending to boost infrastructure growth, even as revenue growth remains moderate. Economists expect fiscal management to tighten in the second half of FY26 as the government works to maintain the deficit target of 4.9% of GDP set in the Union Budget.
The fiscal position will depend heavily on tax buoyancy, divestment proceeds, and control over subsidies during the remaining months of the financial year.