New Delhi, Aug 1: India’s fiscal deficit widened to Rs 3.1 lakh crore during the April-June quarter of FY27, up from about Rs 2.8 lakh crore in the corresponding period last year, according to data released by the Controller General of Accounts (CGA) on Friday.
The fiscal deficit, or the gap between the government’s expenditure and revenue, stood at Rs 3,07,833 crore, accounting for 18.2 per cent of the full-year Budget Estimate, compared with 17.9 per cent in the year-ago period.
The Centre has budgeted a fiscal deficit of Rs 16.96 lakh crore, equivalent to 4.3 per cent of gross domestic product, for FY27. The government’s finances in the first quarter were also supported by higher tax collections.
Net tax revenue stood at Rs 6.36 lakh crore, or 22.2 per cent of the Budget Estimate for FY27, compared with 19 per cent of the annual target in the corresponding period last year.
In absolute terms, net tax receipts increased from around Rs 5.4 lakh crore in April-June FY26 to Rs 6.4 lakh crore in the first quarter of FY27.
Non-tax revenue also increased to Rs 3.8 lakh crore from Rs 3.7 lakh crore a year earlier. These receipts include dividends from the public sector enterprises and the Reserve Bank of India, spectrum-related income and government fees.
Overall, the Centre’s total receipts stood at Rs 10.49 lakh crore, accounting for 28.7 per cent of the full-year Budget Estimate. This is a 11.5 per cent increase over the corresponding period last year.
Government Spending Picks Up
The Centre’s total expenditure during the first three months of FY27 stood at Rs 13.57 lakh crore, or 25.4 per cent of the full-year Budget Estimate, compared with 24.1 per cent in the corresponding period last year.
Revenue expenditure stood at Rs 10.17 lakh crore, while capital expenditure rose to Rs 3.4 lakh crore from Rs 2.75 lakh crore a year earlier.
Capital expenditure increased 23.7 per cent year-on-year, significantly outpacing the 7.4 per cent growth in revenue expenditure.
The increase in capital outlay is in line with the government’s strategy of supporting economic growth through public investment while maintaining its fiscal consolidation path. Finance Minister Nirmala Sitharaman has set the fiscal deficit target for FY27 at 4.3 per cent of GDP.
Interest Payments And Fiscal Indicators
Interest payments during the quarter amounted to Rs 3.46 lakh crore. This accounted for 24.7 per cent of the annual Budget Estimate, compared with 30.2 per cent in the corresponding period last year.
The revenue deficit stood at Rs 2,578 crore, while the Centre posted a primary surplus of Rs 38,581 crore during the April-June period.
