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Informist, Friday, Jul. 31, 2026

 

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--Govt Jun fiscal deficit INR 1.455 tln vs INR 2.676 tln deficit year ago
--Govt Jun total expenditure INR 4.761 tln vs INR 4.760 tln year ago
--Govt Jun capital expenditure INR 893 bln vs INR 537.78 bln year ago
--Govt Jun total receipts INR 3.306 tln vs INR 2.084 tln year ago
--Govt Jun non-tax revenue INR 268 bln vs INR 161.84 bln year ago
--Govt Jun gross tax revenue INR 3.763 tln vs INR 3.538 tln year ago
--Govt Jun state tax devolution INR 878 bln vs INR 1.635 tln yr ago
--Govt Apr-Jun fiscal deficit INR 3.078 tln vs INR 2.807 tln deficit year ago
--Govt Apr-Jun fiscal deficit 18.2% of FY27 Budget target of INR 16.958 tln
--Govt Apr-Jun total expenditure INR 13.571 tln vs INR 12.221 tln year ago
--Govt Apr-Jun capital expenditure INR 3.403 tln vs INR 2.751 tln year ago
--Govt Apr-Jun total receipts INR 10.492 tln vs INR 9.414 tln year ago
--Govt Apr-Jun non-tax revenue INR 3.777 tln vs INR 3.731 tln year ago
--Govt Apr-Jun gross tax revenue INR 9.009 tln vs INR 8.690 tln year ago
--Govt Apr-Jun state tax devolution INR 2.633 tln vs INR 3.269 tln yr ago

 

NEW DELHI – The government's fiscal deficit was down 45.6% on year to INR 1.455 trillion in June on the back of sharp improvement in net tax collection and a fall in revenue expenditure. The fall in fiscal deficit in June brought the deficit for Apr-Jun to INR 3.078 trillion, up 9.7% on year. In Apr-May, the fiscal deficit was 12 times the year-ago figure.

 

As such, the government's fiscal deficit for Apr-Jun was 18.2% of the Budget estimate of INR 16.958 trillion, data released Friday by the Controller General of Accounts showed. In Apr-Jun last year, the fiscal deficit was 17.9% of the Budget estimate of the year. 

 

The government's net tax collection was up 52.2% on year in June as devolution to states was down 46.3%. The government transferred INR 877.79 billion to states in June – one tranche of monthly devolution – compared to two installments released in June last year. The government's net tax collection for June was INR 2.884 trillion. In Apr-Jun, net tax collections were INR 6.366 trillion, up 17.8% on year. 

 

The government's total receipts in June was up 58.6% on year to INR 3.306 trillion. Of this, non-tax revenue rose 65.6% on year to INR 267.97 billion. The gross tax revenue was INR 3.763 trillion, up 6.4% on year. The total expenditure was flat on year at INR 4.761 trillion. The government's revenue expenditure was down 8.4% on year to INR 3.868 trillion, while capital spending rose 66% on year to INR 892.55 billion.

The Centre's total receipts rose 11.5% to INR 10.492 trillion in Apr-Jun, while total expenditure was up 11% to INR 13.57 trillion. The government's capital expenditure grew 23.7% to INR 3.403 trillion in the June quarter. The government's gross tax revenue was INR 9.009 trillion in Apr-Jun, up 3.7% on year.

 

ICRA currently pegs the net impact of the West Asia war on the government's fiscal deficit around INR 1.25 trillion or 0.2% of GDP, assuming an average oil price of $80-$85 per barrel in FY27. "However, this could be matched by expenditure savings, which have ranged from INR 1.8 trillion-INR 2.6 trillion during FY18-FY25, suggesting H2 borrowings may not need to be enhanced," Aditi Nayar, chief economist at ICRA, said in a note. 

 

Looking ahead, the renewed tensions in West Asia and uncertainty on the war projects volatility in global energy prices. The war has also disrupted the supply of raw materials including those needed for fertiliser production. "This may have direct implications for the Government of India's fiscal position through several channels," Nayar said.

 

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

 

	June 2026	May 2026	June 2025	Year-on-year % change
Revenue receipts	3,152.35	4,962.2	2,056.4	53.3
Net tax revenue	2,884.38	1,696.46	1,894.54	52.2
Non-tax revenue	267.97	3,265.74	161.84	65.6
Recovery of loans	40.25	25.15	27.89	44.3
Other receipts	113.14	72.55	0.05	226180
Total receipts	3,305.74	5,059.9	2,084.32	58.6
Revenue expenditure	3,867.98	2,448.69	4,222.23	(-)8.4
Capital expenditure	892.55	611.72	537.78	66.0
Total expenditure	4,760.53	3,060.41	4,760.01	0.0
Fiscal deficit	1,454.79	(-)1,999.49	2,675.69	(-)45.6
Revenue deficit	715.63	(-)25,153.51	2,165.85	(-)67.0

 

	Apr-Jun 2026	Apr-Jun 2025	Year-on-year % change	Budget estimates	% of actuals to Budget estimates
					FY27	FY26
Revenue receipts	10,142.40	9,133.77	11.0	355,331.5	28.7%	26.7%
Net tax revenue	6,365.76	5,403.16	17.8	28,669.22	22.2%	19.0%
Non-tax revenue	3,776.64	3,730.61	1.2	6,662.28	56.7%	64.0%
Recovery of loans	100.62	53.95	86.5	383.97	26.2%	18.6%
Other receipts	249.41	226.23	10.2	800.0	31.2%	48.1%
Total receipts	10,492.43	9,413.95	11.5	36,515.47	28.7%	26.9%
Revenue expenditure	10,168.18	9,469.95	7.4	41,254.94	24.6%	24.0%
Capital expenditure	3,402.58	2,751.32	23.7	12,218.21	27.8%	24.5%
Total expenditure	13,570.76	12,221.27	11.0	53,473.15	25.4%	24.1%
Fiscal deficit	3,078.33	2,807.32	9.7	16,957.68	18.2%	17.9%
Revenue deficit	25.78	336.18	(-)92.3	5,923.44	0.4%	6.4%

 

Source: Controller General of Accounts

 

End

 

US$1 = INR 95.38

 

Reported by Priyasmita Dutta and Shweta

Edited by Akul Nishant Akhoury

 

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