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India's FY26 Deficit Hits 80.4% of Target by Feb-End
30 Mar
Summary
- Fiscal deficit reached ₹12.52 lakh crore by February-end FY26.
- Capital expenditure rose significantly in February and cumulatively.
- Net tax collections and non-tax revenues showed year-on-year growth.
As of March 30, 2026, India's fiscal deficit for the April-February period of FY26 stood at ₹12.52 lakh crore. This represents 80.4% of the full-year estimate, showing progress in fiscal consolidation compared to the same period last year.
While the cumulative deficit narrowed, February alone saw a widened deficit of ₹2.71 lakh crore. This was primarily driven by a substantial increase in capital expenditure, which rose to ₹87,000 crore in February and ₹9.3 trillion for the April-February period, underscoring the government's focus on infrastructure development.
Government revenues showed positive trends, with net tax collections increasing to ₹21.5 trillion and non-tax revenues to ₹5.8 trillion during the period. Total government expenditure also saw a slight increase to ₹40.4 trillion. With over 80% of the annual deficit target utilized by month-end, the final spending and revenue figures for March will be closely watched.
