Fiscal Deficit of India (Fiscal/Budget Balance)
Fiscal Deficit of India: Key Updates
Latest Release
🗓️ Oct, 2025
Fiscal Deficit (Cumulative)
₹8,25,144 crore
% of Target
52.6% of BE
FY26 Target
4.4% of GDP
Fiscal Deficit Summary – Apr–Oct (FY 2025–26)
Fiscal Deficit Overview
India’s fiscal deficit for the first seven months of FY 2025–26 (April–October 2025) stands at ₹8.25 lakh crore, which is 52.6% of the full-year Budget Estimate (BE) of ₹15.69 lakh crore.
During the same period in FY 2024–25, the fiscal deficit was 46.5% of BE, indicating that the fiscal position this year reflects:
- Higher capital expenditure, especially in infrastructure
- Front-loaded spending, which is typical in years with strong public investment
- Solid non-tax revenue performance, which has partially offset weaker tax growth
Despite the higher percentage of BE used, the government’s fiscal trajectory remains broadly on track, backed by robust revenue growth, disciplined expenditure, and healthy non-tax inflows.
Headline Fiscal Numbers
The table below provides a snapshot of India’s fiscal performance from April to October FY 2025–26, compared to the same period last year.
It shows how much the government:
- Earned (Receipts),
- Spent (Expenditure), and
- Borrowed (Fiscal Deficit)
as a share of the full-year Budget Estimate.
Fiscal Indicators Table – Apr–Oct (₹ crore, % of Budget Estimates)
| Indicator | Apr–Oct FY 2025–26 | % of BE (2025–26) | Apr–Oct FY 2024–25 | % of BE (2024–25) |
|---|---|---|---|---|
| Fiscal Deficit | ₹8,25,144 crore | 52.60% | ₹7,50,824 crore | 46.50% |
| Total Receipts | ₹18,00,475 crore | 51.50% | ₹17,23,074 crore | 53.70% |
| • Revenue Receipts | ₹17,63,380 crore | 51.60% | ₹17,04,267 crore | 54.50% |
| • Tax Revenue (Net) | ₹12,74,301 crore | 44.90% | ₹13,04,973 crore | 50.50% |
| • Non-Tax Revenue | ₹4,89,076 crore | 83.90% | ₹3,99,294 crore | 73.20% |
| Total Expenditure | ₹26,25,619 crore | 51.80% | ₹24,73,898 crore | 51.30% |
| • Revenue Expenditure | ₹20,07,876 crore | 50.90% | ₹20,07,353 crore | 54.10% |
| • Capital Expenditure | ₹6,17,743 crore | 55.10% | ₹4,66,545 crore | 42.00% |
| Revenue Deficit | ₹2,44,496 crore | 46.70% | ₹3,03,086 crore | 52.20% |
| Primary Deficit | ₹1,51,429 crore | 51.80% | ₹1,54,477 crore | 34.30% |
• BE stands for Budget Estimate. It's Government’s annual target for income, spending, and deficit
• H2 stands for “Half 2”, or the second half of the financial year — from October to March.
Key Observations and Drivers
- Strong Non-Tax Revenue Strengthens Overall Receipts: Non-tax revenues have already reached 84% of the annual target, supported by the large RBI dividend and higher PSU earnings. This has significantly strengthened the government’s revenue position despite softer tax receipts.
- Tax Revenues Show Moderation: Net tax revenues stand at 45% of BE, lower than last year. The slowdown is driven largely by weaker indirect taxes and muted import-related duties, though direct taxes remain broadly stable.
- Capital Expenditure Continues to Lead Fiscal Expansion: Capex has crossed 55% of BE, reflecting the government’s strategy of front-loading infrastructure spending to support growth. Transport, defence, and core infrastructure remain the primary drivers.
- Revenue Deficit Narrowing Indicates Better Fiscal Balance: A Revenue Deficit of ₹2.44 lakh crore (47% of BE) shows improved alignment between recurring revenue and day-to-day expenditure. The reduction relative to last year signals tighter control over revenue spending.
- Fiscal Deficit Primarily Financed Through Domestic Sources: The fiscal deficit of ₹8.25 lakh crore is chiefly funded through domestic borrowings, with external financing playing a negligible role. Market borrowings and small savings continue to be the dominant financing channels.
Financing Breakdown:- Domestic Financing: ₹8.23 lakh crore (dominant share)
- External Financing: ₹1,356 crore (negligible contribution)
- Higher reliance on market borrowings and small savings
- Movement in cash balances also supported funding requirements
What the Data Tells Us
- Fiscal Position Remains Stable: The primary deficit stands at ₹1.51 lakh crore (51.8% of BE). Although not a surplus this year, the figure remains within a manageable band, reflecting: Strong non-tax revenues, Controlled revenue spending, A healthy composition of expenditure.
- Quality of Spending Has Improved: The rise in the fiscal deficit is mainly driven by productive capital spending, not from Excess revenue expenditure, Increased subsidies. This aligns with the government’s long-term strategy of improving the quality of expenditure.
- Policy Outlook:
- India remains broadly on track to achieve its FY26 fiscal deficit target of ~4.4% of GDP.
- Success will depend on: Continued tax buoyancy in the second half, Stability in non-tax receipts, and Prudent expenditure management
- The capex-led fiscal approach strengthens medium-term GDP prospects and supports investment-driven growth.
Economic Impact
- Strong Support to GDP Growth: Front-loaded capital expenditure (55% of BE used already) boosts demand in construction, steel, cement, logistics, and public works. This strengthens India’s investment-led growth cycle and supports near-term GDP momentum.
- Improved Macroeconomic Stability: Higher non-tax revenues and a lower revenue deficit indicate better fiscal balance. This reduces pressure on inflation and supports macroeconomic stability despite higher spending.
- Mild Upward Pressure on Interest Rates: With the fiscal deficit at 52.6% of BE, government borrowing needs may rise in the second half. This can put moderate upward pressure on: bond yields, long-term interest rates, liquidity in the banking system.
- No Significant Inflation Risk: Most spending is capital, not consumption-driven. Capex does not create immediate demand-pull inflation. Price pressures remain limited, mostly within construction materials.
- Positive Environment for Private Investment: Higher government capex signals strong public investment, crowding in private sector activity. Improved infrastructure (roads, ports, railways) enhances medium-term productive capacity.
- Stable Outlook for Markets: The fiscal deficit remains within a manageable range, with strong non-tax revenues improving sentiment. Markets view this as a stable fiscal stance with predictable borrowing, responsible expenditure, and reduced risk premium.
- Fiscal Consolidation Path Intact: Even with high capex, the deficit remains aligned with the FY26 target. This supports India’s macro credibility and reduces sovereign risk perceptions, helpful for global investors and rating agencies.
Fiscal Deficit (MoM): Historical Chart
India Fiscal Deficit Chart - Monthly Data & Trends
Explanation of chart
• A positive number indicates the government ran a fiscal deficit in that month — spending exceeded income, requiring additional borrowing.
• A negative number reflects a monthly surplus, where revenues were higher than expenditure, often occurring during periods of strong tax inflows or lower spending.
• However, even if a few months show a surplus, the overall fiscal position for the year remains a deficit, because total expenditure continues to exceed total receipts on a cumulative basis.
• In simple terms: positive = deficit, negative = surplus, and despite monthly variations, the full-year balance is still a deficit.
• Data for March 2025–26 pertains to provisional accounts.
• Negative (–) sign indicates surplus.
Fiscal Deficit – Monthly & Cumulative
India’s Fiscal Deficit Indicators – Monthly & Cumulative
| Month | Revenue Receipts | Capital Expenditure | Total Expenditure | Revenue Deficit | Fiscal Deficit (Monthly) | Cumulative Fiscal Deficit | % of BE (Fiscal Deficit) |
|---|---|---|---|---|---|---|---|
| Oct-25 | 67,934 | 36,997 | 3,22,280 | 2,17,349 | 2,52,021 | 8,25,144 | 52.60% |
| Sep-25 | 4,44,707 | 1,49,167 | 4,22,477 | −1,71,397 | −25,030 | 5,73,123 | 36.50% |
| Aug-25 | 1,85,319 | 84,653 | 3,17,237 | 47,265 | 1,29,737 | 5,98,153 | 38.10% |
| Jul-25 | 1,52,043 | 71,794 | 3,41,498 | 1,17,661 | 1,87,684 | 4,68,416 | 29.90% |
| Jun-25 | 2,05,638 | 53,778 | 4,76,001 | 2,16,585 | 2,67,569 | 2,80,732 | 17.90% |
| May-25 | 4,50,910 | 61,564 | 2,80,506 | −2,31,968 | −1,73,169 | 13,163 | 0.80% |
| Apr-25 | 2,56,829 | 1,59,790 | 4,65,620 | 49,001 | 1,86,332 | 1,86,332 | 11.90% |
India’s Key Fiscal Indicators (% of GDP)
YoY Fiscal Indicators Breakdown (% of GDP)
| Financial Year | Gross Fiscal Deficit | Net Fiscal Deficit | Primary Deficit | Revenue Deficit | Gross Tax Revenue | Net Tax Revenue | Capital Expenditure |
|---|---|---|---|---|---|---|---|
| 2025–26 | 4.4 | 3.84 | 0.82 | 1.47 | 11.96 | 7.95 | 3.14 |
| 2024–25 | 4.75 | 4.31 | 1.31 | 1.84 | 11.65 | 7.73 | 3.08 |
| 2023–24 | 5.49 | 5.05 | 1.96 | 2.54 | 11.5 | 7.73 | 3.15 |
| 2022–23 | 6.45 | 6.12 | 3 | 3.97 | 11.33 | 7.78 | 2.75 |
| 2021–22 | 6.71 | 6.57 | 3.3 | 4.37 | 11.48 | 7.65 | 2.51 |
| 2020–21 | 9.16 | 8.7 | 5.73 | 7.3 | 10.21 | 7.18 | 2.15 |
| 2019–20 | 4.65 | 4.62 | 1.6 | 3.32 | 10.01 | 6.76 | 1.67 |
| 2018–19 | 3.44 | 3.38 | 0.35 | 2.4 | 11.01 | 6.97 | 1.63 |
| 2017–18 | 3.46 | 3.44 | 0.36 | 2.6 | 11.23 | 7.27 | 1.54 |
| 2016–17 | 3.48 | 3.36 | 0.36 | 2.06 | 11.15 | 7.16 | 1.85 |
| 2015–16 | 3.87 | 3.83 | 0.66 | 2.49 | 10.57 | 6.85 | 1.84 |
| 2014–15 | 4.1 | 3.97 | 0.87 | 2.93 | 9.98 | 7.25 | 1.58 |
| 2013–14 | 4.48 | 4.42 | 1.14 | 3.18 | 10.14 | 7.26 | 1.67 |
| 2012–13 | 4.93 | 4.87 | 1.78 | 3.66 | 10.42 | 7.46 | 1.68 |
| 2011–12 | 5.91 | 5.88 | 2.78 | 4.51 | 10.18 | 7.21 | 1.82 |
| 2010–11 | 4.8 | 4.64 | 1.79 | 3.24 | 10.19 | 7.32 | 2.01 |
| 2009–10 | 6.46 | 6.35 | 3.17 | 5.23 | 9.64 | 7.05 | 1.74 |
| 2008–09 | 5.99 | 5.84 | 2.57 | 4.5 | 10.75 | 7.87 | 1.6 |
| 2007–08 | 2.54 | 2.42 | -0.88 | 1.05 | 11.89 | 8.81 | 2.37 |
| 2006–07 | 3.32 | 3.52 | -0.18 | 1.87 | 11.03 | 8.18 | 1.6 |
| 2005–06 | 3.96 | 3.95 | 0.37 | 2.5 | 9.95 | 7.32 | 1.8 |
| 2004–05 | 3.88 | 3.89 | -0.04 | 2.42 | 9.36 | 6.93 | 3.5 |
| 2003–04 | 4.34 | 4.07 | -0.03 | 3.46 | 8.89 | 6.58 | 3.84 |
| 2002–03 | 5.72 | 5.28 | 1.08 | 4.25 | 8.46 | 6.25 | 2.94 |
| 2001–02 | 5.98 | 5.22 | 1.42 | 4.25 | 7.91 | 5.67 | 2.58 |
| 2000–01 | 5.46 | 4.95 | 0.9 | 3.91 | 8.65 | 6.28 | 2.19 |
Explanation of Columns
• Gross Fiscal Deficit (% of GDP) → The government’s total borrowing requirement expressed as a share of GDP.
• Net Fiscal Deficit (% of GDP) → Fiscal deficit after adjusting for loans and transfers to states or other entities.
• Primary Deficit (% of GDP) → Fiscal deficit excluding interest payments — shows borrowing beyond interest costs.
• Revenue Deficit (% of GDP) → The gap between the government’s revenue income and revenue expenditure.
• Gross Tax Revenue (% of GDP) → Total tax collections from all sources as a percentage of GDP.
• Net Tax Revenue (% of GDP) → The Centre’s share of tax revenue after transfers to states.
• Capital Expenditure (% of GDP) → Spending on assets, infrastructure, and development projects.
• Data for 2024-25 are Revised Estimates and data for 2025-26 are Budget Estimates.
• Negative (–) sign indicates surplus.
FAQs
Fiscal Deficit is the gap between the government’s total expenditure and its total revenue (excluding borrowings). It shows how much the government needs to borrow to meet its spending requirements during a financial year.
Fiscal Deficit includes both revenue and capital expenditures, while Revenue Deficit focuses only on the difference between revenue expenditure and revenue receipts. In short, Fiscal Deficit shows the total borrowing need, whereas Revenue Deficit shows the shortfall in regular income to meet day-to-day expenses.
A high Fiscal Deficit means the government is borrowing more to finance its spending. This can lead to higher interest rates, increased public debt, and potential inflationary pressure if the borrowing is excessive.
The Controller General of Accounts (CGA) under the Ministry of Finance, Government of India publishes monthly fiscal deficit data in its report “Union Government Accounts at a Glance.”
Fiscal Deficit data is released every month, usually at the end of the following month (e.g., data for September is released in late October). The figures are provisional and may be revised later.
The data is updated automatically after each monthly release by the Controller General of Accounts (CGA). The latest figures are verified with official sources such as CGA, RBI, and the Union Budget documents to ensure accuracy.
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Important
If you notice any discrepancies in the data or find any inaccuracies, please let us know. We will review and correct them as soon as possible.
