Government's Fiscal Performance: Balancing Act Amid Budget Targets
The fiscal deficit at the end of June stood at 17.9% of the annual target. In absolute terms, this was Rs 2.80 lakh crore. The government has received Rs 9.41 lakh crore in total receipts. Capital expenditure expanded by 52% in Q1 FY26, supporting investment demand and GDP growth.
- Country:
- India
The Government of India reported a fiscal deficit of 17.9% of its full-year target by the end of June, according to the Controller General of Accounts (CGA).
The accounting data highlighted a fiscal gap of Rs 2,80,732 crore during the April-June period of the 2025-26 fiscal year. Meanwhile, the government's revenue intake reached 26.9% of its budget estimate, totaling Rs 9.41 lakh crore.
Aditi Nayar, Chief Economist at ICRA, noted that there was significant growth in capital expenditure, expanding by 52% year-on-year in Q1, FY26, despite tepid direct tax collections in June 2025. This expansion is likely to positively influence investment demand and economic growth, she added.
(With inputs from agencies.)
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