Centre's Fiscal Deficit Climbs to 38.1% of Annual Target

The fiscal deficit of the Centre hit 38.1 per cent of its full-year target by the end of August, as revealed by data from the Controller General of Accounts (CGA).

Compared to the same period last year, when the deficit was 27 per cent of the Budget Estimates, this year's deficit amounts to Rs 5,98,153 crore from April to August.

During the 2025-26 fiscal year, the government anticipates the deficit to reach 4.4 per cent of GDP or Rs 15.69 lakh crore. Up to August 2025, the government garnered Rs 12.82 lakh crore in revenues, with significant portions from tax, non-tax, and non-debt capital receipts.

Furthermore, the Centre has allocated Rs 5.3 lakh crore as state government tax share, a notable rise compared to last year. The overall government spending in revenue and capital accounts till August amounts to Rs 18.8 lakh crore.

Interest payments and subsidies are significant components of spending, but the current deficit might not fully reflect the fiscal year's deficit due to temporal mismatches between receipts and expenditure.

(With inputs from agencies.)