New Delhi: The Centre’s fiscal deficit stood at 36.5 percent of the full-year target at the end of the first half of the financial year 2025-26, according to data released by the Controller General of Accounts (CGA) on Friday. This marks an increase compared to the same period last year, when the fiscal deficit was 29 percent of the Budget Estimates (BE) for 2024-25.
In absolute terms, the fiscal deficit — representing the gap between the government’s expenditure and revenue — amounted to Rs 5,73,123 crore during April-September 2025-26. The government has projected a fiscal deficit of 4.4 percent of GDP, or Rs 15.69 lakh crore, for the full financial year.
Revenue Collections and Composition
CGA data shows that the government received Rs 16.95 lakh crore, accounting for 49.6 percent of the total receipts projected in the BE 2025-26. The composition of these receipts included:
- Tax revenue (net to Centre): Rs 12.29 lakh crore
- Non-tax revenue: Rs 4.6 lakh crore
- Non-debt capital receipts: Rs 34,770 crore
This indicates that revenue inflows are broadly on track, supporting government expenditure while keeping borrowing requirements under check.
Comparative Analysis with Previous Year
The fiscal deficit trajectory in H1 FY26 shows a higher proportion of the annual target being utilized compared to the previous year’s 29 percent. Analysts attribute this to increased government spending on capital projects, social welfare schemes, and strategic investments in infrastructure, alongside steady revenue collections.
Implications and Outlook
The Centre’s fiscal management will be closely watched in the second half of FY26, as efforts continue to balance growth-oriented expenditure with fiscal discipline. Maintaining the fiscal deficit within the 4.4 percent of GDP target will be crucial for sustaining investor confidence and macroeconomic stability.
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