India’s fiscal deficit touches 26.8% of FY27 target at ₹4.55 lakh crore in April-July
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Fiscal deficit narrowed from 29.9% in the year-ago period, while higher non-tax revenue and faster capex by Railways and highways supported the government’s finances
Credits: Sanjay Rawat
India's fiscal deficit for the first four months of this fiscal year through July stood at ₹4.55 lakh crore, or 26.8% of the annual estimate, government data showed on Monday. The fiscal deficit reported 29.9% in the comparable year-earlier period.
Total receipts stood at ₹13.07 lakh crore, while overall expenditure during April-July was ₹17.62 lakh crore. Receipts and expenditure were 35.8% and 32.9%, respectively, of this fiscal year's budget targets. In the year-earlier period, total receipts were at 31.3% of the estimate, while expenditure stood at 30.9%.
RBI dividend boosts non-tax revenue
Revenue receipts stood at ₹12.68 lakh crore, of which tax revenue was ₹8.45 lakh crore and non-tax revenue was ₹4.23 lakh crore.
Non-tax revenue typically includes dividends from public sector enterprises and the Reserve Bank of India, spectrum-related income and various fees collected by the government.
Non-tax revenue jumped as the Reserve Bank of India approved a dividend of ₹2.87 lakh crore to the central government, up from ₹2.69 lakh crore transferred last year. This will help the central government reduce its fiscal deficit.
Revenue deficit was at ₹43,645 crore, or 7.4% of the fiscal year's budget target, data showed.
Railways, highways accelerate capex
On the expenditure side, the government spent about ₹1.54 lakh crore on major subsidies such as food, fertilisers and petroleum. This was 37% of the annual aim, wider than 30% of budgeted expenditure in the comparable period last year.
Capital expenditure by the Railways and the Ministry of Road Transport and Highways saw a strong acceleration in the first quarter of FY27.
Railways spent ₹1.19 lakh crore during April-June, accounting for 43% of its full-year capital expenditure allocation of ₹2.78 lakh crore, compared with 37% of the annual allocation spent in the corresponding period last year.
Similarly, the Road Transport and Highways Ministry utilised ₹1.11 lakh crore, or 38% of its ₹2.94 lakh crore annual capex allocation, during the quarter, up from 29% in the year-ago period.
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