Fiscal Deficit

The Centre's fiscal deficit rose nearly 25 per cent YoY to Rs 7.14 trillion in H1FY27 as tax collections slowed, while higher expenditure raised concerns over meeting the FY27 target

India's fiscal deficit rose from ₹5.7 trillion in April-September FY26 to ₹7.14 trillion in the first half of FY27, while capital expenditure increased to ₹6.5 trillion, according to government data

Union Finance Minister Nirmala Sitharaman on Monday said the Centre is committed to reducing the fiscal deficit, as evidenced by the annual budgets, stressing that the national debt will be limited to 50 per cent of the GDP by 2030. Addressing concerns about the national debt, she said that since the post-COVID period, every nation has faced debt challenges. "We are committed to reducing the fiscal deficit, as evidenced by our annual budgets. We have openly stated our goal that by 2030, the national debt will be limited to 50 per cent of the GDP. We are consistently putting in place measures to reduce the Union Government's debt, and international organisations have acknowledged India's disciplined approach to debt management." Sitharaman told reporters here.

Central tax collections rose 6.5% in April-August, trailing the 9% FY27 Budget target, as major tax receipts declined sharply in August.

Centre's fiscal deficit widened to ₹7.10 trillion in April-August as capital expenditure rose 18 per cent and spending on major subsidies increased nearly 25 per cent

Centre's fiscal deficit stood at ₹7.1 trillion during April-August, at 41.9% of the full-year target, according to CGA data

The government's net market borrowing, which essentially goes into financing the fiscal deficit, remains at ₹11.73 trillion, as estimated in the Budget

An NCAER study flags Chhattisgarh's reliance on volatile mining revenue, rising subsidies and widening deficits, warning that its debt-to-GSDP ratio could climb further.

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Capital spending rose 30 per cent year-on-year to Rs 4.51 trillion in April-July, while the fiscal deficit fell nearly 3 per cent to Rs 4.55 trillion

In absolute terms, the fiscal deficit, or gap between the government's expenditure and revenue, was Rs 4,55,144 crore in the April-July period of the 2026-27 fiscal year

Business Standard's State Fiscal Health Tracker compares states and Union Territories on revenue deficit as a share of GSDP. Here's what the FY25 Budget Estimates show

Business Standard's State Fiscal Health Tracker compares states and Union Territories on gross fiscal deficit as a share of GSDP. Here's what the FY25 Budget Estimates show

Rating agency retains stable outlook, citing policy stability and infrastructure investment, but sees risks to Centre's FY27 fiscal deficit target from revenue, subsidy pressures

Stronger tax collections and exports offered support, but higher inflation, a widening trade deficit and elevated debt kept macroeconomic risks in focus

The ministry said its fiscal consolidation path and Rs 1 trillion stabilisation fund provide room to absorb mild shocks, but sustained oil-price increases pose risks

Deficits stayed particularly high in Madhya Pradesh, Tamil Nadu, Uttar Pradesh and Telangana, apart from Bihar, according to the study

The government will have to cut its debt-to-GDP ratio by 260 basis points in the current financial year to meet the Budget Estimate of 55.6 per cent for FY27

CAG audits reveal that several Indian states understated their fiscal gaps in 2024-25 due to accounting practices, off-budget borrowings, and unrecorded liabilities

Fiscal deficit stood at 18.2 per cent of the FY27 target as higher subsidy spending was offset by robust revenue growth and sustained capital expenditure