India’s fiscal deficit in the April – November period of the current financial year touched ₹9.76 lakh crore, or 63% of the FY26 budget estimate of ₹15.48 lakh crore. In the corresponding period of  the previous financial year, fiscal deficit stood at 53% of  the budget estimate.

“The government of India has received ₹19,49,239 crore (55.7% of corresponding BE 2025-26 of total Receipts) up to November, 2025 comprising ₹13,93,946 crore of tax revenue (net to centre), ₹5,16,366 crore of non-tax revenue and ₹38,927 crore of non-debt capital receipts,” said the ministry of finance in a release today.  

“₹9,36,561 crore has been transferred to state governments as devolution of share of taxes by government of India during this period which is ₹1,24,498 crore higher than the previous year,” it added.

Capex of ₹6.58 lakh crore

“Total Expenditure incurred by government of India is ₹29,25,910 crore (57.8% of corresponding BE 2025-26), out of which ₹22,67,700 crore is on revenue account and ₹6,58,210 crore is on capital account. Out of the total revenue expenditure, ₹7,45,765 crore is on account of interest payments and ₹2,88,333 crore is on account of major subsidies,” the ministry said.

Revenue Shortfall

ICRA expects a shortfall in the revenue to the tune of ₹1.5 lakh crore. “The Government of India's (GoI's) fiscal deficit widened amid a 28% YoY surge in capex, even as the revenue deficit printed in line with the year ago levels. Notably, while net tax revenues contracted by 3.4% during this period, non-tax revenues expanded by 20.8% and revenue expenditure rose by a muted 1.8%, keeping the revenue deficit in check,” said Aditi Nayar, Chief Economist, ICRA Ltd.

“While the performance of direct taxes improved, that of indirect taxes remains subdued post the GST rationalisation. Within indirect taxes, customs duties contracted by 7.3% while CGST and excise collections rose by 5-9%. Interestingly, IGST settlement between the Centre and the states over the recent months appears to have dampened the gross tax revenues of the GoI in 8M FY2026,” Nayar added.

“We now anticipate a shortfall of Rs.1.5 trillion in the GoI's gross tax revenues in the current fiscal relative to the FY2026 BE,” she said.

“The GoI’s capex contracted for the second consecutive month in November 2025, thereby declining by 21% in October-November 2025 after having expanded by 31% in Q2 FY2026. Nevertheless, capex recorded a healthy rise of 28% YoY during 8M FY2026,” Nayar added.