Data Alert
India Apr-Jun fiscal deficit doubles YoY; at 17.9% of FY26 aim
This story was originally published at 17:59 IST on 31 July 2025
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--Govt Apr-Jun fiscal deficit 17.9% of FY26 Budget target of INR 15.689 tln
--Govt Apr-Jun fiscal deficit INR 2.807 tln vs INR 1.357 tln year ago
--Govt Apr-Jun total expenditure INR 12.221 tln vs INR 9.699 tln year ago
--Govt Apr-Jun total receipts INR 9.414 tln vs INR 8.342 tln year ago
--Govt Apr-Jun capital expenditure INR 2.751 tln vs INR 1.811 tln year ago
--Govt Apr-Jun non-tax revenue INR 3.731 tln vs INR 2.800 tln year ago
--Govt Apr-Jun gross tax revenue INR 8.690 tln vs INR 8.308 tln year ago
--Govt: Apr-Jun state tax devolution INR 3.269 tln vs INR 2.795 tln year ago
--Govt Jun fiscal deficit INR 2.676 tln vs INR 851 bln deficit year ago
--Govt Jun total expenditure INR 4.760 tln vs INR 3.464 tln year ago
--Govt Jun total receipts INR 2.084 tln vs INR 2.614 tln year ago
--Govt Jun capital expenditure INR 538 bln vs INR 374 bln year ago
--Govt Jun non-tax revenue INR 162 bln vs INR 283 bln year ago
--Govt Jun gross tax revenue INR 3.538 tln vs INR 3.712 tln year ago
NEW DELHI - The Indian government's fiscal deficit for the first quarter of 2025-26 (Apr-Mar) was INR 2.807 trillion, more than double the deficit in the same period a year ago, data released Thursday by the Controller General of Accounts showed. The fiscal deficit in Apr-Jun accounted for 17.9% of the Budget target of INR 15.689 trillion for FY26, higher than the 8.4% seen in the first three months of FY25.
Total expenditure rose 26% on year to INR 12.221 trillion during Apr-Jun while total receipts were up 12.9% at INR 9.413 trillion. Capital expenditure jumped 52% on year to INR 2.751 trillion in the first three months of FY26.
The government maintained its thrust on investments in June with capital expenditure rising 43.7% on year to INR 538 billion. Revenue expenditure was up 20% at INR 9.469 trillion in the June quarter. Revenue expenditure rose 36.6% on year to INR 4.222 trillion last month.
Net tax revenue was down nearly 2% in the three months to June at INR 5.403 trillion mainly because of a 17.8% fall in revenue in June to INR 1.895 trillion.
The government's gross tax mop-up in the first three months of FY26 was up just 4.6% on year at INR 8.690 trillion. Income tax collections fell 0.5% on year in Apr-Jun to INR 2.858 trillion. Corporate tax collections during Apr-Jun were INR 1.727 trillion, 1.2% lower on year.
Non-tax revenue rose 33.2% on year to INR 3.731 trillion in the June quarter, helped largely by the record high surplus transfer of INR 2.69 trillion by the Reserve Bank of India in May. Non-tax revenue was down 42.9% in June at INR 162 billion.
"Although the government's capital expenditure expanded by a sharp 52% year-on-year in Apr-Jun, this was on a low base and was 1% lower than the levels seen in Apr-Jun FY24," ICRA Chief Economist Aditi Nayar said. "Nevertheless, the capex amounted to a healthy around 25% of the FY26 BE (Budget estimate), and the same can now contract by as much as 3% in the remaining 9 months of FY26 and still meet the target," Nayar said in a note.
Nayar said the government could push up capital expenditure by around INR 800 billion in FY26 relative to the Budget estimate, boosting the headline figure to nearly INR 12 trillion against the Budget estimate of INR 11.2 trillion.
The Controller General of Accounts detailed the government's accounts for June and Apr-Jun as follows (in INR billion):
| June 2025 | May 2025 | June 2024 | Year-on-year % change | |
| Revenue receipts | 2,056.38 | 4,509.10 | 2,589.19 | (-)20.6 |
| Net tax revenue | 1,894.54 | 1,611.93 | 2,305.97 | (-)17.8 |
| Non-tax revenue | 161.84 | 2,897.17 | 283.22 | (-)42.9 |
| Recovery of loans | 27.89 | 15.58 | 24.33 | 14.6 |
| Other receipts | 0.05 | 12.07 | 0 | -- |
| Total receipts | 2,084.32 | 4,536.75 | 2,613.52 | (-)20.2 |
| Revenue expenditure | 4,222.23 | 2,189.42 | 3,090.23 | 36.6 |
| Capital expenditure | 537.78 | 615.64 | 374.26 | 43.7 |
| Total expenditure | 4,760.01 | 2,805.06 | 3,464.49 | 37.4 |
| Fiscal deficit | 2,675.69 | (-)1,731.69 | 850.97 | 214.4 |
| Revenue deficit | 2,165.85 | (-)2,319.68 | 501.04 | 332.3 |
| Apr-Jun FY26 | Apr-Jun FY25 | % change Year-on-year | Budget estimates | % of actuals to Budget estimates | ||
| FY26 | FY25 | |||||
| Revenue receipts | 9,133.77 | 8,296.77 | 10.1 | 34,204.09 | 26.7 | 26.5 |
| Net tax revenue | 5,403.16 | 5,496.33 | (-)1.7 | 28,374.09 | 19.0 | 21.3 |
| Non-tax revenue | 3,730.61 | 2,800.44 | 33.2 | 5,830.00 | 64.0 | 51.3 |
| Recovery of loans | 53.95 | 45.16 | 19.5 | 290 | 18.6 | 16.1 |
| Other receipts | 226.23 | 0.04 | 565475.0 | 470 | 48.1 | 0 |
| Total receipts | 9,413.95 | 8,341.97 | 12.9 | 34,964.09 | 26.9 | 26 |
| Revenue expenditure | 9,469.95 | 7,888.58 | 20.0 | 39,442.55 | 24.0 | 21.3 |
| Capital expenditure | 2,751.32 | 1,810.51 | 52.0 | 11,210.90 | 24.5 | 16.3 |
| Total expenditure | 12,221.27 | 9,699.09 | 26.0 | 50,653.45 | 24.1 | 20.1 |
| Fiscal deficit | 2,807.32 | 1,357.12 | 106.9 | 15,689.36 | 17.9 | 8.4 |
| Revenue deficit | 336.18 | (-)408.19 | -- | 5,238.46 | 6.4 | (-)7.0 |
Source: Controller General of Accounts
End
Reported by Shubham Rana
Edited by Vandana Hingorani
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