Overview
- Official Controller General of Accounts data released June 30 shows the fiscal deficit for April–May FY27 at ₹1.62 lakh crore, equal to 9.6% of the full‑year budget estimate.
- Total receipts in the two months were ₹7.19 lakh crore while expenditure was higher at ₹8.81 lakh crore, meaning spending outpaced revenue and drove the wider gap.
- Non‑tax receipts were unusually strong early in the year because the Reserve Bank of India made a record surplus/dividend transfer, which partially offset weak tax growth.
- Capital expenditure remained robust at about ₹2.51 lakh crore, but non‑debt capital receipts and disinvestment proceeds lagged at roughly ₹19,664 crore and ₹13,627 crore respectively.
- Analysts say the shortfall raises near‑term downside risk to the 4.3% FY27 target and that the final outcome will hinge on oil prices, the disinvestment timetable, and how quickly the government rephases or curbs spending.