Fiscal Balancing Act: India's Financial Landscape

India's fiscal deficit reached Rs 12.52 lakh crore by the end of February, achieving 80.4% of the annual target for the fiscal year 2025-26. Comparatively, this marks an improvement from 85.8% in the same period last year, as revealed by recent government data.

The central government's estimated fiscal deficit for the 2025-26 period stands at 4.4% of GDP, amounting to Rs 15.58 lakh crore. The Controller General of Accounts (CGA) highlighted that by February-end 2026, total receipts amounted to Rs 27.91 lakh crore, representing 82% of the budget target.

Of the total receipts, tax revenue contributed Rs 21.45 lakh crore, while non-tax revenue made up Rs 5.8 lakh crore. Spending by the central government from April to February totaled Rs 40.44 lakh crore, capturing 81.5% of the full financial year budget target.