The Controller General of Accounts (CGA) released data showing that the government’s fiscal gap stood at Rs 5,73,123 crore during April-September 2025. The figure marks a rise compared with the same period of FY25, when the deficit stood at 29 % of the Budget Estimates. The government has projected the full-year fiscal deficit for 2025-26 at Rs 15.69 lakh crore, representing 4.4 % of India’s GDP.
The latest numbers indicate that expenditure growth remains ahead of receipts during the first half of the fiscal year. Total receipts during April-September 2025-26 reached Rs 16.95 lakh crore, or 49.6 % of the annual Budget Estimate. Tax revenue, net to the Centre, amounted to Rs 12.29 lakh crore, showing steady collection across key segments. Non-tax revenue stood at Rs 4.60 lakh crore, while non-debt capital receipts reached Rs 34,770 crore.
Officials said higher capital expenditure has been front-loaded to accelerate infrastructure projects and economic growth. They expect second-half spending to moderate as receipts improve with festive-season collections. Economists noted that the government’s fiscal consolidation roadmap remains on track despite early-year spending pressures.
They believe the combination of rising direct taxes and efficient GST collections will help maintain fiscal discipline. The government aims to narrow the deficit gradually over coming years while balancing growth priorities. Fiscal deficit management remains crucial for sustaining investor confidence and macroeconomic stability.
India’s fiscal performance in the first half of FY26 shows resilience despite global uncertainties and domestic spending needs. Analysts expect the Centre to meet its FY26 target if revenue trends continue their current momentum
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