India’s fiscal deficit stood at ₹7.14 trillion in the first six months of the financial year 2026-27 (FY27), accounting for 42.1 per cent of the full-year target, according to government data released on Friday.
The fiscal deficit, which represents the gap between the government’s total expenditure and its total receipts excluding borrowings, was 36.5 per cent of the Budget Estimates (BE) in the corresponding period of the previous financial year. In absolute terms, the deficit increased from ₹5.7 trillion in April-September FY26 to ₹7.14 trillion in the first half of FY27.
The government has set its fiscal deficit target for FY27 at 4.3 per cent of gross domestic product (GDP), or ₹16.96 trillion.
How much tax revenue did the Centre collect in April-September FY27?
Net tax revenue stood at ₹12.76 trillion in April-September FY27, accounting for 44.5 per cent of the Budget Estimates for the current financial year. The corresponding figure stood at ₹12.3 trillion in the first half of FY26, or 43.3 per cent of the FY26 target.
Non-tax revenue increased to ₹4.8 trillion in the first six months of FY27, compared with ₹4.7 trillion in the corresponding period last year.
How much did government expenditure and capital spending increase?
Total government expenditure stood at ₹25.5 trillion during April-September FY27, accounting for 47.7 per cent of the full-year Budget Estimates. This was higher than the ₹23 trillion spent in the corresponding period of the previous financial year.
Capital expenditure, which covers government spending on physical infrastructure and asset creation, increased to ₹6.5 trillion in the first half of FY27, from ₹5.8 trillion a year earlier.
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