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India’s Fiscal Deficit Reaches 63% of FY26 Target Through January

A larger RBI dividend with steady tax inflows kept the consolidation path toward the 4.4% goal.

Overview

  • The deficit stood at about Rs 9.8–9.81 lakh crore, improving from 74.5% of the full-year aim in the year-earlier period.
  • Total receipts were Rs 27.08–27.09 lakh crore (79.5% of the revised estimate) against expenditure of Rs 36.90 lakh crore (74.3%).
  • Revenue receipts reached Rs 26.52 lakh crore, including Rs 20.94 lakh crore in tax revenue and Rs 5.57 lakh crore in non-tax revenue boosted by an RBI dividend of Rs 2.69 lakh crore.
  • Capital expenditure rose to Rs 8.42 lakh crore in April–January, up from about Rs 7.6 lakh crore a year earlier.
  • Transfers to states totaled Rs 11.39 lakh crore, interest payments were Rs 9.88 lakh crore, and major subsidies were about Rs 3.54–3.55 lakh crore.