What is the story about?
India’s fiscal arithmetic showed a measure of consolidation in the first nine months of 2025-26, with the Centre’s deficit narrowing 6.4% year-on-year to ₹8.56 lakh crore in April–December, according to data released by the Controller General of Accounts on Friday.
The deficit for the period accounted for 54.5% of the full-year Budget estimate of ₹15.69 lakh crore, an improvement from 56.7% in the corresponding stretch last year.
The government has pegged the fiscal deficit at 4.4% of GDP for 2025-26, compared with 4.8% in the previous year. Finance Minister Nirmala Sitharaman is widely expected to outline a tighter target of 4.2% of GDP for 2026-27 in the Union Budget to be presented on Sunday.
The headline improvement was underpinned by robust revenue collections even as expenditure remained elevated. Total receipts in April–December rose to ₹25.25 lakh crore from ₹23.18 lakh crore a year earlier. Gross tax revenue increased to ₹29.84 lakh crore from ₹27.50 lakh crore, while non-tax revenue climbed to ₹5.40 lakh crore from ₹4.48 lakh crore.
On the spending side, total expenditure expanded to ₹33.81 lakh crore, up from ₹32.32 lakh crore in the same period last year. Capital expenditure — a key focus of the government’s growth strategy — rose sharply to ₹7.88 lakh crore from ₹6.85 lakh crore. Tax devolution to states also increased to ₹10.38 lakh crore, compared with ₹9.01 lakh crore a year earlier.
December, however, delivered a rare monthly surplus of ₹1.21 lakh crore, reversing a deficit of ₹67,500 crore recorded in the same month last year. The turnaround was driven by stronger tax inflows and restrained spending.
Total receipts in December surged to ₹5.76 lakh crore from ₹4.24 lakh crore a year ago, aided by a jump in gross tax revenue to ₹6.48 lakh crore from ₹4.90 lakh crore. Non-tax revenue edged up to ₹23,500 crore from ₹20,600 crore.
Expenditure in the month eased to ₹4.55 lakh crore from ₹4.91 lakh crore a year earlier. Capital outlay stood at ₹1.30 lakh crore in December, compared with ₹1.72 lakh crore in the corresponding month of 2024-25.
The deficit for the period accounted for 54.5% of the full-year Budget estimate of ₹15.69 lakh crore, an improvement from 56.7% in the corresponding stretch last year.
The government has pegged the fiscal deficit at 4.4% of GDP for 2025-26, compared with 4.8% in the previous year. Finance Minister Nirmala Sitharaman is widely expected to outline a tighter target of 4.2% of GDP for 2026-27 in the Union Budget to be presented on Sunday.
The headline improvement was underpinned by robust revenue collections even as expenditure remained elevated. Total receipts in April–December rose to ₹25.25 lakh crore from ₹23.18 lakh crore a year earlier. Gross tax revenue increased to ₹29.84 lakh crore from ₹27.50 lakh crore, while non-tax revenue climbed to ₹5.40 lakh crore from ₹4.48 lakh crore.
On the spending side, total expenditure expanded to ₹33.81 lakh crore, up from ₹32.32 lakh crore in the same period last year. Capital expenditure — a key focus of the government’s growth strategy — rose sharply to ₹7.88 lakh crore from ₹6.85 lakh crore. Tax devolution to states also increased to ₹10.38 lakh crore, compared with ₹9.01 lakh crore a year earlier.
December, however, delivered a rare monthly surplus of ₹1.21 lakh crore, reversing a deficit of ₹67,500 crore recorded in the same month last year. The turnaround was driven by stronger tax inflows and restrained spending.
Total receipts in December surged to ₹5.76 lakh crore from ₹4.24 lakh crore a year ago, aided by a jump in gross tax revenue to ₹6.48 lakh crore from ₹4.90 lakh crore. Non-tax revenue edged up to ₹23,500 crore from ₹20,600 crore.
Expenditure in the month eased to ₹4.55 lakh crore from ₹4.91 lakh crore a year earlier. Capital outlay stood at ₹1.30 lakh crore in December, compared with ₹1.72 lakh crore in the corresponding month of 2024-25.
