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Informist, Monday, Aug. 31, 2026

 

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--Govt Apr-Jul fiscal deficit 26.8% of FY27 Budget target of INR 16.958 tln 
--Govt Apr-Jul fiscal deficit INR 4.551 tln vs INR 4.684 tln year ago 
--Govt Apr-Jul total expenditure INR 17.619 tln vs INR 15.636 tln year ago 
--Govt Apr-Jul capital expenditure INR 4.506 tln vs INR 3.469 tln year ago 
--Govt Apr-Jul total receipts INR 13.067 tln vs INR 10.952 tln year ago 
--Govt Apr-Jul non-tax revenue INR 4.230 tln vs INR 4.036 tln year ago 
--Govt Apr-Jul gross tax revenue INR 12.180 tln vs INR 10.929 tln year ago 
--Govt: Apr-Jul state tax devolution INR 3.724 tln vs INR 4.285 tln yr ago 
--Govt Jul fiscal deficit INR 1.473 tln vs INR 1.877 tln deficit year ago 
--Govt Jul total expenditure INR 4.048 tln vs INR 3.415 tln year ago 
--Govt Jul capital expenditure INR 1.104 tln vs INR 717.94 bln year ago 
--Govt Jul total receipts INR 2.575 tln vs INR 1.538 tln year ago 
--Govt Jul non-tax revenue INR 453.49 bln vs INR 305.47 bln year ago 
--Govt Jul gross tax revenue INR 3.171 tln vs INR 2.239 tln year ago 
 

 

NEW DELHI – The government's fiscal deficit was down 21.5% on year at INR 1.47 trillion in July owing to much higher growth in total receipts compared to total expenditure. The fall in fiscal deficit in July brought the deficit for the first four months of the financial year 2026-27 (Apr-Mar) to INR 4.55 trillion, down 2.8% on year. In Apr-Jun, the fiscal deficit was up 9.7% from the year-ago figure.

 

As such, the government's fiscal deficit for Apr-Jul was 26.8% of the Budget estimate of INR 16.958 trillion, data released Monday by the Controller General of Accounts showed. In Apr-Jul last year, the fiscal deficit was 29.9% of the FY26 Budget estimate.

 

The government's total expenditure rose 18.5% on year to INR 4.047 trillion in July while total receipts increased 67.4% to INR 2.575 trillion. Of the total receipts, non-tax revenue rose 48.5% on year to INR 453.49 billion. Gross tax revenue rose 41.6% on year to INR 3.171 trillion.

 

The government's net tax collection jumped 71.2% on year to INR 2.080 trillion in July as growth in income tax almost doubled on year. Income tax rose over 96% on year to INR 1.363 trillion in July.

 

The government's revenue expenditure was up 9.2% on year at INR 2.944 trillion while capital spending rose 53.7% on year to INR 1.104 trillion. The government has met 36.9% of its capital expenditure target for FY27.

 

The Centre's total receipts rose 19% on year to INR 12.68 trillion in Apr-Jul while total expenditure was up 12.7% at INR 17.62 trillion. The government's capital expenditure grew 29.9% to INR 4.506 trillion in the first four months of the current financial year. The government's gross tax revenue was INR 12.180 trillion in Apr-Jul, up 11.5% on year.

 

"Based on the FY27 BE (Budget estimate) and the provisional 4M (four months) trends, the GoI's GTR (gross tax revenue) needs expand by 8.7% YoY in the remaining eight months of FY27 to achieve the budgeted target of INR 44.0 trillion for the fiscal," Aditi Nayar, chief economist, ICRA Ltd. said in a note.

 

"While this seems modest compared to our current expectation of a double-digit nominal GDP growth for the fiscal, some shortfall is likely on account of union excise duty collections following the duty cut on petrol and diesel, and PIT (personal income tax) collections (barring securities transaction tax), which need to expand by (about) 15% during the remainder of the fiscal. These would be partly offset by higher-than-budgeted collections on the customs duty front, aided by the duty hikes on gold and silver imports," she added. 

 

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

 

	Jul 2026	Jun 2026	Jul 2025	Year-on-year % change
Revenue receipts	2,533.33	3,152.35	1,520.43	66.62
Net tax revenue	2,079.84	2,884.38	1,214.96	71.19
Non-tax revenue	453.49	267.97	305.47	48.46
Recovery of loans	14.93	40.25	17.43	-14.34
Other receipts	26.4	113.14	0.28	9328.57
Total receipts	2,574.66	3,305.74	1,538.14	67.39
Revenue expenditure	2,944.00	3,867.98	2,697.04	9.16
Capital expenditure	1,103.77	892.55	717.94	53.74
Total expenditure	4,047.77	4,760.53	3,414.98	18.53
Fiscal deficit	1,473.11	1,454.79	1,876.84	-21.51
Revenue deficit	410.67	715.63	1,176.61	-65.10

 

	Apr-Jul 2026	Apr-Jul 2025	Year-on-year % change	Budget estimates FY27	% of actuals to Budget estimates
					FY27	FY26
Revenue receipts	12,675.73	10,654.20	18.97	3,55,331.50	35.9%	31.1%
Net tax revenue	8,445.60	6,618.12	27.61	28,669.22	29.5%	23.3%
Non-tax revenue	4230.13	4,036.08	4.81	6,662.28	63.5%	69.2%
Recovery of loans	115.55	71.38	61.88	383.97	30.1%	24.6%
Other receipts	275.81	226.51	21.77	800	34.5%	48.2%
Total receipts	13,067.09	10,952.09	19.31	36,515.47	35.8%	31.3%
Revenue expenditure	13,112.18	12,166.99	7.77	41,254.94	31.8%	30.8%
Capital expenditure	4,506.35	3,469.26	29.89	12,218.21	36.9%	30.9%
Total expenditure	17,618.53	15,636.25	12.68	53,473.15	32.9%	30.9%
Fiscal deficit	4,551.44	4,684.16	-2.83	16,957.68	26.8%	29.9%
Revenue deficit	436.45	1,512.79	-71.15	5,923.44	7.4%	28.9%

Source: Controller General of Accounts

 

End

 

Reported by Pratiksha

Edited by Rajeev Pai

 

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