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Govt posts fiscal surplus in May; Apr-May deficit at INR 1.6 tln
This story was originally published at 18:17 IST on 30 June 2026
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--Govt Apr-May fiscal deficit 9.6% of FY27 Budget target of INR 16.958 tln
--Govt Apr-May fiscal deficit INR 1.624 tln vs INR 132 bln year ago
--Govt Apr-May total expenditure INR 8.810 tln vs INR 7.461 tln year ago
--Govt Apr-May capital expenditure INR 2.510 tln vs INR 2.214 tln year ago
--Govt Apr-May total receipts INR 7.187 tln vs INR 7.330 tln year ago
--Govt Apr-May non-tax revenue INR 3.509 tln vs INR 3.569 tln year ago
--Govt Apr-May gross tax revenue INR 5.246 tln vs INR 5.152 tln year ago
--Govt: Apr-May state tax devolution INR 1.756 tln vs INR 1.635 tln yr ago
--Govt May fiscal surplus INR 2 tln vs INR 1.732 tln surplus year ago
--Govt May total expenditure INR 3.060 tln vs INR 2.805 tln year ago
--Govt May capital expenditure INR 612 bln vs INR 616 bln year ago
--Govt May total receipts INR 5.060 tln vs INR 4.537 tln year ago
--Govt May non-tax revenue INR 3.266 tln vs INR 2.897 tln year ago
--Govt May gross tax revenue INR 2.582 tln vs INR 2.438 tln year ago
NEW DELHI – The government reported a fiscal surplus of INR 2 trillion in May after the Reserve Bank of India transferred a record surplus of INR 2.87 trillion last month. That said, the government's fiscal deficit in Apr-May was INR 1.624 trillion, over 10 times higher than a year ago.
The fiscal deficit in Apr-May was 9.6% of the Budget estimate of INR 16.958 trillion for 2026-27 (Apr-Mar). In Apr-May last year, the fiscal gap was 0.8% of the Budget estimate for the year. The government's fiscal deficit in April was sharply higher at INR 3.623 trillion.
The Centre's total receipts fell 2% to INR 7.187 trillion in Apr-May, while total expenditure jumped 18.1% to INR 8.810 trillion. The government's capital expenditure grew 13.4% to INR 2.510 trillion in the first two months of the current financial year.
The government's revenue receipts were INR 6.990 trillion during the period, down 1.2% on year. Of this, net tax revenue in Apr-May slipped 0.8% to INR 3.481 trillion, while non-tax revenue declined 1.7% to INR 3.509 trillion.
In May, the total expenditure was INR 3.060 trillion, up 9.1%, and total receipts were INR 5.060 trillion, up 11.5% from the corresponding period a year ago. The government's capital spending in May fell 0.6% to INR 611.72 billion.
The government had posted a fiscal surplus in May as well, on account of the then-record-high dividend transfer of INR 2.69 trillion from the RBI. This year, the surplus transfer from the RBI took the government's non-tax revenue to INR 3.266 trillion in May, up 12.7% on years.
"Looking ahead, the sharp dip in global energy prices following the cooling of tensions in West Asia has improved the outlook for the GoI's (Government of India's) fiscal position in FY2027," Aditi Nayar, chief economist at ICRA, said in a note. ICRA expects a marginal overshoot in the government's fiscal deficit relative to the target of 4.3% of GDP for FY27.
The Controller General of Accounts detailed the government's accounts for May and Apr-May as follows (in INR billion):
| May 2026 | April 2026 | May 2025 | Year-on-year % change | |
| Revenue receipts | 4,962.2 | 2,027.85 | 4,509.1 | 10.0 |
| Net tax revenue | 1,696.46 | 1,784.92 | 1,611.93 | 5.2 |
| Non-tax revenue | 3,265.74 | 242.93 | 2,897.17 | 12.7 |
| Recovery of loans | 25.15 | 35.22 | 15.58 | 61.4 |
| Other receipts | 72.55 | 63.72 | 12.07 | 501.1 |
| Total receipts | 5,059.9 | 2,126.79 | 4,536.75 | 11.5 |
| Revenue expenditure | 2,448.69 | 3,851.51 | 2,189.42 | 11.8 |
| Capital expenditure | 611.72 | 1,898.31 | 615.64 | (-)0.6 |
| Total expenditure | 3,060.41 | 5,749.82 | 2,805.06 | 9.1 |
| Fiscal deficit | (-)1,999.49 | 3,623.03 | (-)1,731.69 | -- |
| Revenue deficit | (-)2,513.51 | 1,823.66 | (-)2,319.68 | -- |
| Apr-May 2026 | Apr-May 2025 | Year-on-year % change | Budget estimates | % of actuals to Budget estimates | ||
| FY27 | FY26 | |||||
| Revenue receipts | 6,990.05 | 7,077.39 | (-)1.2 | 355,331.5 | 19.8% | 20.7% |
| Net tax revenue | 3,481.38 | 3,508.62 | (-)0.8 | 28,669.22 | 12.1% | 12.4% |
| Non-tax revenue | 3,508.67 | 3,568.77 | (-)1.7 | 6,662.28 | 52.7% | 61.2% |
| Recovery of loans | 60.37 | 26.06 | 131.7 | 383.97 | 15.7% | 9.0% |
| Other receipts | 136.27 | 226.18 | (-)39.8 | 800.0 | 17.0% | 48.1% |
| Total receipts | 7,186.69 | 7,329.63 | (-)2.0 | 36,515.47 | 19.7% | 21.0% |
| Revenue expenditure | 6,300.20 | 5,247.72 | 20.1 | 41,254.94 | 15.3% | 13.3% |
| Capital expenditure | 2,510.03 | 2,213.54 | 13.4 | 12,218.21 | 20.5% | 19.7% |
| Total expenditure | 8,810.23 | 7,461.26 | 18.1 | 53,473.15 | 16.5% | 14.7% |
| Fiscal deficit | 1,623.54 | 131.63 | 1133.4 | 16,957.68 | 9.6% | 0.8% |
| Revenue deficit | (-)689.85 | (-)1,829.67 | -- | 5,923.44 | (-)11.6% | (-)34.9% |
Source: Controller General of Accounts
End
Reported by Shweta
Edited by Saji George Titus
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