Indias Fiscal Deficit Reaches 42.1% of Target in First Half of FY 2026-27

New Delhi, October 30 (Daily Kiran) : India’s fiscal deficit for the first half of the fiscal year 2026-27, covering April to September, has reached ₹7.15 lakh crore. This figure represents 42.1% of the deficit target set by the government for the current fiscal year. The information was released by the government on Friday.

In the same period last year, the fiscal deficit stood at ₹5.7 lakh crore. Government data indicates that net tax revenue for the first half of this fiscal year was ₹12.8 lakh crore, slightly up from ₹12.3 lakh crore during the same period last year, reflecting a 4.06% annual increase.

Non-tax revenue also saw a rise, totaling ₹4.8 lakh crore compared to ₹4.7 lakh crore last year, marking a 2.12% increase year-on-year. Meanwhile, total government expenditure during this period reached ₹25.5 lakh crore, a significant increase from ₹23 lakh crore in the previous year, representing a 10.8% rise.

Capital expenditure has also grown, climbing to ₹6.5 lakh crore from ₹5.8 lakh crore in the first half of the previous fiscal year, which is an annual increase of about 12%. The government has set the overall fiscal deficit target for the entire fiscal year 2026-27 at ₹16.96 lakh crore, equivalent to 4.3% of GDP.

Last month, the government announced plans to borrow ₹7.86 lakh crore in the second half of the fiscal year. This borrowing plan includes ₹15,000 crore in sovereign green bonds and will be executed through 23 weekly auctions, according to the finance ministry. The total borrowing through dated securities for the entire fiscal year is expected to reach approximately ₹15.9 lakh crore.

In the central budget, Finance Minister Nirmala Sitharaman proposed a borrowing target of ₹17.2 lakh crore for the current fiscal year.