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Informist, Friday, Aug. 29, 2025

 

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--Govt Jul gross tax revenue INR 2.239 tln vs INR 2.534 tln year ago 
--Govt Jul non-tax revenue INR 305 bln vs INR 218 bln year ago 
--Govt Jul capital expenditure INR 718 bln vs INR 802 bln year ago 
--Govt Jul total receipts INR 1.538 tln vs INR 1.892 tln year ago 
--Govt Jul total expenditure INR 3.415 tln vs INR 3.304 tln year ago 
--Govt Jul fiscal deficit INR 1.877 tln vs INR 1.412 tln deficit year ago 
--Govt: Apr-Jul state tax devolution INR 4.285 tln vs INR 3.666 tln year ago 
--Govt Apr-Jul gross tax revenue INR 10.929 tln vs INR 10.842 tln year ago 
--Govt Apr-Jul non-tax revenue INR 4.036 tln vs INR 3.018 tln year ago 
--Govt Apr-Jul capital expenditure INR 3.469 tln vs INR 2.613 tln year ago 
--Govt Apr-Jul total receipts INR 10.952 tln vs INR 10.234 tln year ago 
--Govt Apr-Jul total expenditure INR 15.636 tln vs INR 13.004 tln year ago 
--Govt Apr-Jul fiscal deficit INR 4.684 tln vs INR 2.769 tln year ago 
--Govt Apr-Jul fiscal deficit 29.9% of FY26 Budget target of INR 15.689 tln
 

 

 

 

 

NEW DELHI – The Indian government's fiscal deficit for the first four months of 2025-26 (Apr-Mar) was at INR 4.684 trillion, 69% higher than the deficit in the same period a year ago, data released Friday by the Controller General of Accounts showed. The fiscal deficit in Apr-Jul accounted for 29.9% of the Budget target of INR 15.689 trillion for FY26, lower than the 33.9% seen in the first four months of FY25.

 

Total expenditure rose 20.2% on year to INR 15.636 trillion during Apr-Jul while total receipts were up 7% at INR 10.952 trillion. Capital expenditure jumped 32.8% on year to INR 3.469 trillion in the first four months of FY26. Although the government is pushing for investments, capital expenditure was down 10.5% in July at INR 718 billion. 

 

"With the Union Budget for FY25 having been presented in July 2024, expenditure expansion had recorded an acceleration in the subsequent months, which should dampen the year-on-year growth prints in the coming months," Aditi Nayar, Chief Economist, ICRA Ltd said.

 

Revenue expenditure was up 17.1% at INR 12.167 trillion in Apr-Jul, with 7.8% on year-on-year rise to INR 2.697 trillion last month, supported by last year's election-riddled low base. 

 

Net tax revenue was down 7.5% in the four months to July at INR 6.618 trillion mainly because of a 26.6?ll in revenue in July to INR 1.215 trillion. The government's gross tax mop-up in the first four months of FY26 was up just 0.8% on year at INR 10.929 trillion. Income tax collections fell 9.9% on year in Apr-Jul to INR 3.553 trillion while corporate tax collections during Apr-Jul were INR 1.986 trillion, 7.6% higher on year. 

 

"A contraction in the personal income tax collections in July 2025, owing to the extension of the deadline to file taxes and an adverse base, pulled down the performance of gross tax revenues in the month, even as devolution to states maintained a robust pace, further compressing the performance of net tax revenues," Nayar said.

 

Non-tax revenue rose 33.7% on year to INR 4.036 trillion in the four months upto July, 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 also up 40.6% on year in July at INR 305.47 billion. 

 

In a note, Nayar also said that ICRA estimates the government to have a fiscal space of INR 500 billion in FY26, which could be used to push up capex beyond the target, provide a package to support exporters, or absorb shortfalls in direct or indirect taxes. "While this fiscal headroom could be cut short by the implications of the proposed goods and services tax changes on revenues, more clarity is awaited on the same," she said. 

 

The Controller General of Accounts detailed the government's accounts for July and Apr-Jul as follows (in INR billion):

	Jul-25	Jun-25	Jul-24	Year-on-year % change
Revenue receipts	1,520.43	2,056.38	1,873.43	(-)18.8
Net tax revenue	1,214.96	1,894.54	1,655.91	(-)26.6
Non-tax revenue	305.47	161.84	217.20	40.6
Recovery of loans	17.43	27.89	18.65	(-)6.5
Other receipts	0.28	0.05	0.01	2700.0
Total receipts	1,538.14	2,084.32	1,892.09	(-)18.7
Revenue expenditure	2,697.04	4,222.23	2,502.33	7.8
Capital expenditure	717.94	537.78	802.09	(-)10.5
Total expenditure	3,414.98	4,760.01	3,304.42	3.3
Fiscal deficit	1,876.84	2,675.69	1,412.33	32.9
Revenue deficit	1,176.61	2,165.85	628.90	87.1

 

 

	Apr-Jul FY26	Apr-Jul FY25	% change Year-on-year	Budget estimates	% of actuals to Budget estimates
					FY26	FY25
Revenue receipts	10,654.2	10,170.20	(-)53.9	34,204.09	13.7	28.9
Net tax revenue	6,618.12	7,152.24	(-)7.5	28,374.09	23.3	25
Non-tax revenue	4,036.08	3,017.96	33.7	5,830.00	69.2	59.3
Recovery of loans	71.38	63.81	11.9	290	24.6	35.9
Other receipts	226.51	0.05	452920.0	470	48.2	9
Total receipts	10,952.09	10,234.06	7.0	34,964.09	31.3	28.5
Revenue expenditure	12,166.99	10,390.91	17.1	39,442.55	30.8	30.4
Capital expenditure	3,469.26	2,612.60	32.8	11,210.90	30.9	31.7
Total expenditure	15,636.25	13,003.51	20.2	50,653.45	30.9	30.7
Fiscal deficit	4,684.16	2,769.45	69.1	15,689.36	29.9	33.9
Revenue deficit	1,512.79	220.71	585.4	5,238.46	28.9	34.7

 

 

End

 

Reported by Priyasmita Dutta

Edited by Vandana Hingorani

 

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