New Delhi, February 27: India’s fiscal deficit stood at ₹9.8 lakh crore by the end of January 2026, accounting for 63% of the annual target for the current fiscal year.
According to data released by the Finance Ministry, the Indian government received ₹27,08,654 crore by January 2026, which is 79.5% of the revised estimate for the entire fiscal year 2025-26.
This amount includes ₹20,94,218 crore from tax revenue (net amount received by the Centre), ₹5,57,307 crore from non-tax revenue, and ₹57,129 crore from non-debt capital receipts. During this period, the Indian government transferred ₹11,39,767 crore to state governments as part of tax shares, which is ₹65,588 crore more than the previous year.
The total expenditure by the Indian government during this period was ₹36,90,061 crore, representing 74.3% of the revised total expenditure estimate for fiscal year 2025-26. Of this, ₹28,47,780 crore was spent on revenue and ₹8,42,281 crore on capital expenditure.
Out of the total revenue expenditure, ₹9,88,302 crore was allocated for interest payments, while ₹3,54,861 crore was spent on major subsidies.
Finance Minister Nirmala Sitharaman has projected a reduction of the fiscal deficit to 4.3% of Gross Domestic Product (GDP) for 2026-27. In her budget speech on February 1, she stated that the government has fulfilled its commitment to reduce the fiscal deficit to 4.4% in the 2025-26 budget and aims to further lower it to 4.3% while maintaining fiscal prudence.
She emphasized that this target reflects a balance between sustaining economic momentum and stabilizing public finances.
The fiscal deficit is the difference between the total expenditure and total revenue of the government.
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