Fiscal Deficit

CAG pulls up Odisha govt for PSU dues, flags poor budget utilisation

Audit flags over Rs 5,000 crore unpaid PSU dividends and weak budget utilisation, raising concerns over fiscal oversight and revenue mobilisation in Odisha

Centre's fiscal deficit in April-February at 80% of FY26 target: CGA

Fiscal deficit narrows to 80.4% of revised estimates in April-February FY26, aided by higher revenues and steady capex, though global risks may pressure FY27 outlook

Centre's fiscal deficit touches 80.4% of full-year target at Feb-end: CGA

The Centre's fiscal deficit stood at Rs 12.52 lakh crore at the end of February, or 80.4 per cent of the annual budget target for 2025-26 compared to 85.8 per cent in the year-ago period, according to government data released on Monday. The central government estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 lakh crore. According to monthly accounts released by the Controller General of Accounts (CGA), the Centre's total receipts stood at Rs 27.91 lakh crore, or 82 per cent of the budget target by February-end 2026. The receipts included Rs 21.45 lakh crore tax revenue (net) and Rs 5.8 lakh crore non-tax revenue. The CGA data showed that the central government's total expenditure during April-February 2025-26 stood at Rs 40.44 lakh crore, or 81.5 per cent of the full financial year budget target.

StatsGuru: States' fiscal challenges versus electoral compulsions

The promises, if implemented, will aggravate public finances to varying degrees in these states, depending on the parameters chosen

Excise duty cut can result in fiscal loss of ₹1.5 trillion, say economists

₹10 per litre excise duty cut on petrol and diesel may cost ₹1.5 trn in FY27 but help sustain consumption amid the West Asia crisis, even as economists flag risks to fiscal space

High energy prices may impact FY27 fiscal position; buffers available: ICRA

Elevated global crude and gas prices may affect India's FY27 fiscal position, though buffers such as expenditure savings and fiscal tools could help manage pressures, ICRA said

West Asia war: Are the effects priced in amid rising economic risks?

As the Strait of Hormuz disruption deepens, India faces rising inflation, supply shocks, and fiscal strain, with markets yet to fully price in the risks

L&T hopes govt will sustain capex, widen deficit amid West Asia crisis

Amid concerns over a surge in import bill because of commodity price hardening in the wake of the Middle East conflict, Larsen & Toubro is hoping that the government continues with its capital expenditure even if it means a widening of fiscal deficit. The engineering, procurement and construction major feels the government should borrow more if needed to continue with capital expenditure, a senior official has said. "The import bill will go up because of oil and gas prices. The government will have to balance it. They will maybe temporarily raise the deficit, may be they will borrow more," its Deputy Managing Director Subramanian Sarma told reporters over the weekend. "Overall, if you look at it, our fiscal situation is pretty good... we have some headroom so that we don't compromise on the capital for the infrastructure," Sarma added. He also noted India has been able to curtail the fiscal deficit after the impact of the Covid pandemic. Spends on infrastructure are necessary to .

₹1 trillion stabilisation fund to give fiscal headroom: FM Sitharaman

Finance Minister Nirmala Sitharaman told Lok Sabha the Rs 1 trillion Economic Stabilisation Fund will help India respond to global shocks while keeping fiscal consolidation targets intact

Niti Aayog urges states to follow fiscal deficit norms under FRBM Act

Government think tank Niti Aayog on Wednesday urged state governments to adhere to fiscal deficit norms under the FRBM Act through disciplined expenditure management, broadening the GST base, and enhancing their own tax capacity. The Fiscal Responsibility and Budget Management (FRBM) Act aims to regulate the country's debt level by restricting fiscal and revenue deficits as a percentage of GDP. Niti Aayog's 2026 Fiscal Health Index (FHI) for 2023-24 suggests that states with widening revenue deficits should prioritise aligning revenue expenditure with sustainable revenue growth. Odisha, Goa, Jharkhand, Gujarat, Maharashtra Chhattisgarh, Telangana, Uttar Pradesh, Karnataka and Madhya Pradesh have emerged as India's top 10 fiscally-wise states, according to the latest fiscal health index for the financial year 2023-24. Bihar, Karnataka and Telangana showed a mild recovery, whereas Punjab, West Bengal and Kerala remained at the bottom of the index. In the FHI of 2025, which ranked st

Iran war: Fiscal pressures on govt may mount next FY, say experts

A prolonged West Asia conflict could strain India's fiscal position through higher fertiliser subsidies, rising import costs and weaker revenue growth

A Finance Commission that questions states but spares the Union government

The Commission appreciates the Union government's fiscal restraint during the pandemic and the subsequent reduction in deficits and debt following the sharp spike seen in the pandemic year

Govt seeks LS nod for additional expenditure of ₹2.81 trillion in FY26

Finance Ministry seeks Parliament approval for Rs 2.01 trillion net additional FY26 spending through the second supplementary demand for grants, with allocations for subsidies and reserve funds

Govt revises fiscal deficit ratios for FY23-FY25 after GDP base year update

The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday. As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23. In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23. On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 201112. With the new 2022-23 base, the Nominal GDP or GDP at

Lower FY26 nominal GDP to raise India's fiscal deficit, debt ratios

Lower nominal GDP estimates have nudged up FY26 fiscal deficit and debt ratios, implying a steeper consolidation path even as new NSO GDP data revises sectoral weights

New GDP series lifts FY27 growth outlook to 7-7.4%, says CEA Nageswaran

India's GDP growth for FY27 is seen at 7-7.4% under the new series, with risks tilted upward, as strong momentum, reforms and trade deals lift the outlook

Centre's fiscal deficit at 63% of full year target at Jan-end: CGA data

The Centre estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 trillion

Finance Commission changes pose transition risks for states' fiscal balance

The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits

States' fiscal arithmetic tightens in FY27; deficit seen at 3% of GDP

Ind-Ra expects states' fiscal deficit to widen to 3% of GDP in FY27 due to higher revenue spending, with SASCI-linked borrowing potentially lifting it to 3.5% of GDP

Phase out universal subsidies, target benefits better: ADB-PwC study

ADB-PwC study urges India to phase out universal subsidies, tighten Aadhaar-linked targeting and audits, and improve fiscal efficiency without hurting stability